Tag Archives: strategy

How to increase revenue

Where there is no guidance, a people falls, but in an abundance of counselors there is safety.  Proverbs 11:14 (ESV)

The wisdom of many counselors, as the Bible tells us, can be a good thing. All that counsel will be especially helpful when it boils down to something very simple.

Every organization that I know of that is not fully endowed…every church, every ministry…wants to bring in more money. Much is written about increasing revenue and donations, as it should. But, actually, there are only two ways to do so:

  1. Get more customers or donors.
  2. Generate more revenue or giving per customer.

There is only one way to get more customers:

  1. Make sure you add more customers than you lose.

And finally, there are only two ways to generate more revenue per customer:

  1. Raise prices. 
  2. Sell more products to each customer.

These principles comprise all the knowledge and counsel you will ever get about increasing funding. The reason why it’s important to keep these ideas in mind is so you can test every idea, plan and program against them. If you cannot see and measure how what you or one of your counselors wants to do will get more customers or donors (net), or how it will generate more revenue per customer, then you’d better think of something else. Sounds easy? It’s not. But it is simple.

Future posts will unpack these ideas. Would love to know your reactions, and especially why you think it’s more complicated than what I’ve explained.

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No Vision

Recently met the president of a small ministry that wants to get bigger. Heard several hours of explanation about their core product/service, their homegrown products, their history, and their great team. Never heard a word about their vision. This takes me by surprise because you almost always hear about the vision, even when they’ve got the wrong idea about vision. It seems everyone knows they ought to have a vision and that it’s one of the first things they talk about.

I left the meeting wondering what they were aspiring to. How big is the audience for their special way to do evangelistic outreach and disciple new believers? They don’t know. How big are they now? I don’t know. In the end, I felt they are either trying to hide how small they are, or that they really don’t have a vision for where they can go that they believe in.