Debbie Mayo-Smith: Need more revenue? Get to work

Debbie Mayo-Smith.

How can any salesperson, self-employed professional, CEO of a not-for-profit or business owner improve their income generation? Perhaps the advice I gave the other week to members of the Association of Community Access Broadcasters would help.

They are a lovely, caring and interesting group. The association represents most local non-profit community access radio stations, who provide facilities, training and infrastructure so their communities can make their own radio programmes. The stations follow a government mandate to help groups such as women, children, people with disabilities and minorities get their voices heard.

I did some research. In fact, I rewrote my presentation four times before settling on the message I thought they needed to hear, rather than one that was safe and would get me invited back.

Why use the association as an example? Though their circumstances are specific (a non-profit working with a government mandate) I feel their problems, and the solutions suggested, can be related to many businesses.

In essence, it all comes down to money. They receive a specified amount from New Zealand on Air. Of course, inflation means their real purchasing power is dwindling. The balance of their income is derived in a small part from their fees to broadcasters.

While their mandate allows them to generate up to 50 per cent of revenue from advertising, they don't come near that figure. Additionally, they have the ability to seek donations and sponsorships. They operate in a lean manner, with volunteer help.

Instead of patting them on the back, I took a much harder view. An appropriate analogy would be the phrase that many parents repeat to their teenage children who want more pocket money: "Go get a job." It's similar for the radio managers and for any business owner, salesperson, or professional who wants to improve their business circumstances. Take charge.

Think creatively. There is no reason to live poor.

The plan laid out is threefold. First, you can do anything - not everything. The responsibilities and activities of running a station are significant. Because staffing is at a bare minimum, managers end up doing a mixture of everything.

Administration and minor activities take them away from more important functions such as getting sponsors, advertisers and the like. I gave the group a quantified example of the cost of getting a volunteer or a paid part-time administrator to do everyday jobs, versus doing it themselves, and the opportunity cost of losing time to administrative duties.

When you look at the dollars and sense (sorry, deliberate pun), it's a no-brainer. The business message? Spend a little to earn more. Focus on the right activities. The end result is more income and more free time.

Second, managers need to think like business owners: creatively. While managers don't have the same vested interest as a business owner, they do have the power to do what is necessary to improve profitability. So why not think creatively within one's operating mandate to bring in more revenue?

How? By creating income-producing activity. How? By putting on fundraising events. By seeking more advertisers. By starting a membership base. By seeking more donations. By tapping more into the groups putting on the programmes.

For business in general, it's the same: Create activity to bring in the revenue. With no funds, the big question is how?

Third, a database is a goldmine. Create it. Use it. You database is your ears and eyes. Here I am again singing the same old song. But it's so true - especially for a community station with a loyal following.

By creating and using an information-rich database of donors, advertisers, sponsors, listeners and their broadcasters, you can then call upon them in a targeted fashion.

For example: do personalised email merges asking for annual donations; go back to past advertisers and ask them to come on board again; contact their database to come to or contribute to a fundraising event.

This message relates to any business that has clients who have recurring business or membership.

The final database point I had for them was to incorporate social media - because then they get not only ears, they get eyes.

A bonus for them. For their broadcasters. And for their advertisers.

Debbie Mayo-Smith is a bestselling author and international speaker.

www.debbiespeaks.co.nz

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