Revenue means a lot for a small business, and it is one of the main factors that drives a company. However, the best employees, financial plan and model may not help if money isn't flowing into a firm. 

Every management team should take a look at their revenue, and take steps to figure out how to measure and track this statistic. A number of financial tips could benefit any entrepreneur. With proper forecasting, determining the overall direction – as well as any needed steps to correct flaws – could be a realistic goal. 

Tricks for predicting revenue
A small business owner could stand to gain a lot by monitoring the company's revenue. Following that metric should help make a company predictable, and relieve stress for everyone involved, according to Inc. magazine. 

In order to do just that, two main numbers should be closely followed. For starters, management should take a look at the renewal rate. This is a highly valuable statistic for recurring revenue, and it essentially calculates how many customers come back on a yearly basis. The more people that are buying a firm's product or service, the likelier it is that revenue will remain strong and potentially increase. Every owner should pay attention to how many customers are going to be hanging around. 

Additionally, the other metric that should be watched is the number of new customer contracts per each salesperson, the news source noted. That could include subscribers and members, and it should provide insight for a small business owner on how the company is performing, as well as what staffing changes need to happen in order to increase revenue. Learning the number of returning customers and the renewal rate means the firm could calculate how many new ones need to be gained to retain the current level of revenue.

Tailor customers to the product
When small businesses are just getting off of the ground, it may be tempting for management to change their products and services to best fit the consumers' preferences. However, this might not be the best strategy, and a financial plan could be better served if a company chooses the right customer. 

In some cases, it is the better decision to skip over certain clients, and select the ones that best fit the business, according to Forbes. While this may feel counter-intuitive, it could end up increasing revenue in the long run.  Managers who are straightforward with potential relationships often come across as honest and genuine, which may increase respect across the industry. It could also save time, since people aren't wasting resources trying to make a partnership work that had very little chance of success. 

In order for a small business to figure out which customers to target and which ones to "let go," owners should ask a few simple questions, Forbes noted. To begin with, it is smart to ask whether or not an odd request, complaint or suggestion is a one-time deal, or a recurring problem. If they keep popping up, perhaps it is time for a company to either change the product – or the customer, if the demands are unrealistic or a financial plan could suffer.

Another question firms should be willing to ask is whether or not the customer is worth all of the trouble they bring. Financial tips could offer strategies to maximize the number of consumers, but sometimes getting rid of a few is a better fiscal decision. Bad customers do exist. The problems don't always land on the company itself, and moving away from one client could open up chances with other people.