Have you heard that you shouldn’t put all of your eggs in one basket? That is because if you drop that basket, you have no eggs left. The same goes for the income in your business. If you are completely reliant on one source for generating all of your income, it is dangerous.
What if you lose a key client, can no longer operate as you have been, or drop your figurative basket of eggs? Your business could be in some serious hot water. So how can you safeguard against this?
You implement multiple revenue streams into your business.
What Are Revenue Streams?
Put simply, your revenue streams are how you bring money into your business. They are your core business, any passive income sources and also any business investments that you have.
The thought of adding more to your business can be overwhelming. I bet you are already busy enough right? But multiple revenue streams don’t just mean more money. They can actually make business life less stressful. Here is how…
- It is easier to create multiple smaller streams then it is to create one big one. Think of how much effort you would need to put in to create a $5000 income, whereas 5 lots of $1000 is less stressful.
- You shouldn’t be left high and dry without any income if one source dries up, you can rely on the others to carry you through.
- If your business is seasonal or has slow periods, a second revenue stream can help boost those quiet times.
- You don’t get bored of doing the same thing day in and day out.
- You can utilise all of your skills, talents and passions.
Once you have your core business functioning as it should, one of the best ways to add to your income is by implementing a passive revenue stream.
What is Passive Revenue?
This is the income that flows into your business without you having to exchange your time for money. You are not actively involved in generating the income produced. Generally it will require a significant time investment to set up in the beginning. But once the stream is created, you can potentially earn revenue from it for years to come.
Examples of passive revenue are e-books, online courses, affiliate programmes, podcasts, video footage, images, licensing your idea, franchising, or even a membership site.
How To Create Multiple Revenue Streams
There is no magical formula for adding an income stream to your business. It will take planning and hard work to get it off the ground and functioning as it should, but you will thank yourself when it is up and running. Here is how you should do it…
Step 1: Brainstorm Ideas
You need to have a great idea before you can go ahead and implement it. So it is time for a good old fashioned brainstorm. Grab a big sheet of paper and write your core business in the middle. Then in a mindmap style, list your main products, services, affiliate programmes, and other sources by adding spokes off the centre idea.
You can then go crazy on brainstorming ideas for each category. You might not come up with something for every category, but you should have a bunch of ideas to choose from.
Step 2: Look At The Practical Options
Once you have your ideas, you need to look at the options that are most practical for your current situation and business goals.
Passive revenue streams can be a good way to start as once they are created, you can market them again and again. But you might also want to look at ways that you can expand your business – take on staff or contractors, expand your offerings, or leverage your services by offering group options.
Whatever you choose, you need to make sure that you have the time and resources to implement it. There is no point shifting complete focus to this new revenue stream only to let your core business slide.
Step 3: Implement
Once you have chosen your idea, put all the others to the side. You want to focus on maintaining your current business and implementing one extra revenue stream at a time. Avoid the temptation to start all your ideas at once, this will simply dilute your focus and distract you.
Take the time to implement systems, strategies, calendars and tasks so that it does not become a drain on your time. Once you have given it a chance, decide if it is working or not. If it is, streamline any processes that you can. If it does not generate any revenue, or you end up hating it, then give yourself permission to scrap that idea and focus on the next.
Having multiple income streams not only safeguards your business, but it also gives you the chance to increase your revenue. Just make sure that it doesn’t come at the cost of your existing core business.
Have any questions? Get in touch with us here at The Marketing Baker.