Tuesday, September 10, 2013

2 Ways The Growing Micro Cap Company can Increase Revenue Flow

The start up company and micro cap company have something in common, the wants and need to grow their business. While there are many over the counter traded companies that have no revenue or game plan, for this post we will focus on growing companies and companies that already have an established revenue stream.

For many companies, generating revenue is only half the battle. The next battle starts when they are trying to grow revenue. While some managers focus on cutting cost to increase profit margins, the most common way to increase the profits of a company are to grow revenue streams. The possibility of growing revenue streams are what makes most small companies attractive to investors. There are generally two ways to grow your revenue streams, one is to increase the revenue from already existing revenue streams, and two is too acquire an additional revenue stream.

Increasing revenue from already established revenue streams.

If a company already has revenue coming into the corporation from a revenue stream, the quickest and easiest way to increase revenue streams is to focus on the products and/or services they are already selling. Increased market share in products or services a company is currently competing in equate to bigger profits. For example a corporation which sells shoes, selling more shoes in a different geographic market, would be an example of increasing revenue streams from already established revenue models.

Increasing revenue by acquiring new revenue models.

To work off of our last example, if a shoe company that sells shoes currently begins to sell socks, this is a prime example of increasing a revenue model by acquiring a new revenue model. If the company trolls to sell services in addition to the shoes, this again would be an example of an additional revenue stream that can expand the company's profits.

The takeaway thought.

If you are a start up or micro caps CEO, and have an established revenue stream working well for the company, then you should keep that going. Doing what you have done good, better, will lead to more revenues in a market you are already familiar with. But every market has a cap, and to expand revenues any company will eventually have to acquire additional revenue models in order to expand. A common pitfall of managers expanding companies is the desire to acquire an additional revenue model when they have not completely figure out the original revenue model.

Now, if we are talking about a shell corporation or a start of venture with no revenue models, then acquiring a revenue model from the beginning may be a good option; indeed it may be necessary.

Do you have a thought or an opinion on Micro cap companies or start of ventures acquiring revenue models? Feel free to add any input on our comments section below.

The MicroCapCompany Team
Posted By: Nicholas Coriano 
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About the Author: Nicholas Coriano is a Business Consultant and Planning Guru.  He is a graduate of The University of Connecticut Business School and the John Marshall Law School in Chicago.  He has worked at Merrill Lynch, The New York Stock Exchange and as an Investor Relations Agent & Consultant to Micro Cap Companies and Penny Stocks.  He is the founder and author of The MicroCapCompany.com a blog focused on providing information and advice to Micro Cap Company Executives and Investors.  You can also find him blogging about Social Media, SEO, Web Development and Tech on PushYourRank.com

About MicroCapCompany.COM: MicroCapCompany.COM (The Blog) is a blog focused on providing articles, news and information on the micro cap sector and start-ups.  The Blog is a free service offered by Cervitude™ Investor Relations (a micro cap investor relations firm) and offers compensated research reports and business plan writing services for micro cap companies and penny stocks.  If there is a particular topic you would like to see covered on The Blog, email CervitudeNetwork@gmail.com, If you would like to advertise on The Blog, click here

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