Often when we think about a successful business, we focus on a single product or service as the source of their accomplishments. In practice though, while it is important to have a strong central offering to hang your hat on, the most profitable businesses tend to have multiple revenue streams at their disposal. This is perhaps even more important now than ever before since the COVID-19 pandemic has forced many businesses to rethink their approach. During uncertain times like these, it pays to diversify your revenue streams and find viable alternatives.
Why It Pays to Have Diverse Revenue Streams
Even when there isn’t a global pandemic, there are plenty of reasons for businesses to have multiple revenue streams. The simple fact is that while it is good to have a consistent source of income, but if it is your ONLY source of income, you and your business can wind up in a tight spot if that income stream ever becomes compromised. Having a primary revenue source is fine, but a smart business owner should constantly be looking at the industry and the market, considering how they can improve and who else they can target.
Another reason to take on multiple revenue streams is that relying on a single income source can distract your company from growth. When you and your team are putting all of your time and energy into a single source, it leaves little opportunity for experimentation and creativity. This can leave companies poorly prepared to address potential new clients and customer bases. A good business cannot afford to be complacent and overlook possible business opportunities.
How Do You Create New Revenue Streams?
The first step to opening up more revenue streams is to take stock of yourself and your business to determine what you have to offer. This doesn’t just mean the products and services you already have, but your skills, knowledge, and all of the other work that you do. Look to all of this and determine if there is something here worth monetizing. Often times we do work that we don’t get paid for but could easily be repurposed in a way that could make money.
Beyond that, here are a few steps you take to create additional revenue streams for your business:
- Go Online: Obvious, but increasingly important, especially since so many businesses were forced to go digital during the pandemic. Creating an online presence and online storefront can take a local business national and a national business international,
- Educate & Train Others: If you sell products or services that require considerable time to reach the operational knowledge needed to make the most of them, you can create training courses, whether virtual or in-person. You can also host classes and events where you teach specialized information that would be useful to your target audience.
- Write an eBook: Along with training courses, you can share your knowledge by writing an eBook on a specialized topic that is relevant to your target audience. Oftentimes the content you create for your classes or for blogs on your website can serve as the backbone for these types of books.
- Consider a Subscription Service: Plenty of businesses will offer deals where they’ll send customers a new product every month. If you have a large and loyal enough customer base, this could be a way to mix things up, building customer interest and loyalty in the process.
- Branch Out Into Related Products & Services: One simple way to expand your business is to offer new products beyond your initial offerings. Consider what types of products or services go with your main offerings, especially if they are something that customers have brought up in the past.
- Affiliate Marketing: Affiliate marketing involves writing about other people’s products or services, with the added bonus that you receive a commission for every sale based on your promotion. Many sites exist to help you become a successful affiliate marketer. Investigate different programs and find one that fits your business needs.
These are just a few of the possibilities out there for creating additional revenue streams for your business. There are many different opportunities out there and you’ve almost certainly overlooked at least one opportunity to expand your business. Obviously, building up your income through additional revenue streams takes time, but if you’re willing to put in the work, you can take an already successful business and watch it grow to all new heights.
About the author
Isaac Isaiah Carr, JD MBA is founder, CEO, and business attorney of CCSK Law, a kingdom-driven law firm. Launched 5 years ago, CCSK Law grew from a single member firm to a 10 person team. His areas of focus include business formation and strategy, contract writing, sales, and corporate finance. Often referred to as an entrepreneur with a law degree, Isaac is able to offer business strategy utilizing creative solutions guided by legal and accounting principles that are then well executed in law. Experience in a variety of industries including real estate, hospitality, automotive, e-commerce, professional services, and healthcare. Successfully negotiated and closed multi-million-dollar transactions, ranging from $1.8M to $10M, with private investors, corporate leaders, and municipalities. Ultimately, he builds sustainable structures for systematic growth. Graduated from Valparaiso University Law School summa cum laude with his Juris Doctorate as well as the AACSB-accredited Valparaiso University School of Business with his Master’s in Business Administration. Passionate about education in all forms, Isaac is involved in the nonprofit organizations of SCORE, Neighbors’ Educational Opportunities (NEO) and New Vistas High School, ValpoNext, and Music Neighbors.