Angola Exploration License Extensions Could Spur Oil Sector Recovery

Prior to the onset of COVID-19 and OPEC-led production cuts effective May 1, Angola was set to see a rise in production. In February, the country recorded a production level of 1.39 million barrels per day (bpd), up 15,000 bpd from January.

Habitat for Humanity Eyes 380 Houses for Idai Victims

A humanitarian organization, Habitat for Humanity Malawi, says it will construct 380 disaster resilient houses for people whose houses were affected by the Cyclone Idai in two districts.

Ex-Miners Not Happy with Government

Some Malawian ex-miners who worked in South African mines have blamed government for not honoring its promises to pay them their money as agreed over three years ago.

KRCS Donates to Muslims for Ramadhan

Some poor Muslim households in Mangochi have all the reasons to smile as they finish their holy month of Ramadan, thanks to the Kuwait Red Crescent Society (KRCS) for giving them food.

Silver Strikers to Spend K40 Million on Player Contracts

Silver Strikers say they expect to spend at least forty million Kwacha renewing players’ contracts and extending those that are about to expire.

Political, Governance Experts Tips MEC Commissioners to Go

As the race against time for the Malawi Electoral Commission to organize a fresh presidential poll continues, a local political and governance think tank, Political Science Association (PSA) has asked the remaining MEC commissioners to immediately follow out their chairperson Justice Dr. Jane Ansah.

Access to Surgical Care Crucial in Child's Nutritional Status - Operation Smile MW

International Charity Organisation, Operation Smile Malawi estimates that about 81 under 5 children are expected to be assessed of their nutritional status in the central region this week.

Alternatives to Generating Revenue Income

Alternative ways in which to generate revenue income

Global Revenue at a glance

During 2019, all service lines showed a strong growth in revenue along with geographies and key industries which contributed significantly to the past nine consecutive years’ worth of strong growth after the world economy dipped greatly between 2009 and 2010.

This strong growth has henceforth been deterred greatly with the emergence and spread of Covid-19 with several industries and the economies of a multitude of countries suffering a significant amount of strain, especially during the first three months of 2020.

A vast majority of major (and thousands of minor) companies have reported revenues that are at an all-time, record-breaking low during the first quarter of 2020, which ended in March, due to the widespread impact of the virus on various economies.

While a lot of companies are benefitting from the virus, others have had to develop strategic and alternative plans to counter the financial impacts until such a time that business can resume as normal.

Alternative ways to generate revenue income

1. Stock Buybacks

By buying back shares from shareholders, these stocks can be purchased on the open market from shareholders directly to minimize the cost of equity and in turn the cost of capital.

By buying back shares, companies are able to preserve the stock price and buybacks are often favoured over dividends as they may be cut by banks to preserve cash, resulting in a sell-off of shares.

This is especially done when the stock of some companies have become undervalued and allows them to buy their shares back at a reduced price, only to be able to re-issue them as soon as the markets are in a better condition.

Buying back shares not only makes businesses look more attractive to investors, it also increases the earnings per share, or EPS, of the company as the annual earnings are automatically divided by a significant lower amount of outstanding shares. Many generation Z’s has invested in shares like Facebook, Google and Amazon.

 2. Raise or Lower prices

Prices on products are constantly changing and in times like now, companies are expected to adjust their prices to meet their objectives or the market situation.

Price increases in products and services may very well bring in additional revenues and profits to a company as long as the price increase does not have a negative impact on sales.

The same will apply in price reductions on certain products and sales, as it removes the market share away from other suppliers. Companies need to remain up to date on how their products compare with similar products from a buyers’ viewpoint.

In addition, companies need to stay informed on their competitors’ products to allow them to position themselves better in an uncertain, volatile market.

3. Take inventory of expected Revenue

The first quarter of 2020 already presented a lot of companies with uncertainty pertaining to the rest of 2020 and it is necessary for companies to take inventory of revenue income that they expect by doing the following:

  • Look at products that are higher in demand
  • Secure solid revenue through the use of contractual subscriptions from loyal, long-time customers
  • At-risk evaluations pertaining to commitment and consistency where no contracts are applied
  • Prepare for the unknown

This analysis should be done on all levels not only for customers, but product and service lines along with geographical markets.

4. Re-inspect and adjust the pipeline

Companies will have to work the math backwards in order to not only inspect their product and services pipelines but to in turn run scenarios with more divergent outcomes which allows the company to separate the most critical deals with strategic customers.

Companies have to look at more speculative opportunities as buyers of products and users of services are looking to minimize risks above all else, so they will favour trusted partners along with suppliers.

Companies can look at mobilizing all available resources should there be any blockages that may present themselves when running scenarios to keep these critical deals from moving swiftly and undeterred through the pipelines.

5. Affiliate Marketing and Marketing Strategies

By making use especially of third-party publishers with the purpose of generating traffic and leads pertaining to the company’s products and services, companies are in a better position to increase their market spread and expand on geographic markets.

These third parties are affiliates who work according to a commission fee which incentivizes them to find new innovative ways to promote the company.

This can be done in numerous ways, but with conditions as they are, internet presence and increasing such is imperative at the current moment. In addition, companies can look at a variety of marketing strategies which include, but is not limited to:

6. Drop Shipping

Through using this, companies often do not keep the products that it sells in stock and sales on products are done through utilizing a drop shipping model which involves the purchasing of items from third parties and having it shipped directly to the customer.

This removes the seller from the equation as it does not have to handle the product directly as the company does not stock its own inventory and uses wholesalers or manufactures in order to fulfil orders.

7. Create a central command centre

The purpose behind this is to create a versatile command centre that allows executives to take actions that are rapid and decisive, especially in times of uncertainty and the pace of decision making that increases significantly as a result.

By creating this, analysis can be absorbed, and critical and key personnel can be deployed to critical areas of focus in addition to allowing for real-time tracking to see where shortcomings are, allowing for refocus on such areas.

A lot of leading companies make use of this strategy to substantially boost renewals, cross-selling, for the launching of new products, to test new offers and to increase not only the speed but agility of revenue operations.

Making use of such a central command centre in time of crisis may very well ensure the smooth flow of operations and sales, but it is a good initiative to keep despite times of uncertainty to increase day-to-day business.

Final Thoughts

Companies have been forced to react in different ways to not only ensure business continuity, but also to improve the resilience of supply chains in addition to pivoting innovative ways through which to generate revenue income.

There are numerous ways in which companies can ensure that there is a steady flow of revenue income during uncertain times, strategies that can also be adopted and apply in normal day-to-day business to improve and ensure business efficiency.

 

 

 

 

 

 

PMS Malawi Awaits ECM Determination on Holding Children Congress in August

The Pontifical Mission Society of Malawi has suspended preparatory meetings for the first ever Children Congress scheduled to run from 12th to 17th August in the capital Lilongwe.

Over 300 Apply to MRA for a Waiver on Tax Penalties & Interests

Over 300 tax payers have expressed interest seeking a tax penalty waiver and other exemptions from the Malawi Revenue Authority through the voluntary compliance tax window.

MEC Chair Jane Ansah Throws-in Towel

A rights and law expert, Justin Dzonzi, has warned that the resignation of Malawi Electoral Commission chairperson, Dr. Jane Ansah, last night could plunge Malawi into yet another electoral crisis not long from now.

Plan International Malawi Supports Mulanje District Hospital with PPEs

Barely two weeks after donating COVID-19 sanitary materials to Mulanje District Hospital, Plan International Malawi has bailed out the facility with assorted Personal Protective Equipment to help workers in the wake of COVID-19 pandemic.

MSF Incorporates Female Sex Workers in Covid19 Response

Medicins Sans Frontiers has embarked on a corridor project aiming at equipping female sex workers with Covid-19 messages and protective equipment.

Neno CSOs Appeal for Increased Budget on Child Rights Protection

As schools are closed in the wake of Covid-19 outbreak, children being in the vulnerable group of people, are facing numerous abuses, ranging from infringement to the right to education, early pregnancies and marriages and taking over parental responsibilities at home.

Govt Rolls Out $10 million Radio Education Programme

Education minister, Dr. William Susuwele Banda, has launched a $10 million Emergency Radio Education Programme (EREP) to reach out to primary school learners who are in their homes in response to COVID-19.

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