10 Steps To a Healthier Business - Revenue Streams
The COVID-19 pandemic has brought several business ideas to the forefront for many business owners. There probably isn’t a business owner that hasn’t been negatively impacted by “Stay-At- Home” orders, but those that run brick and mortar businesses have been hurt the worst. Times like these highlight the need for businesses to have multiple streams of revenue. This is a moment where businesses might need to pivot to another revenue stream in order to make it through these trying times.
You might think that your business is immune to market changes. Ask yourself these questions. But is it really? Are there slow seasons? Do you have competitors?
Here a few reasons why multiple revenue streams are essential to a successful business:
Multiple revenue streams carry you through slow seasons. Every business has a slow season. For example, restaurants see a dip in business in January, when disposable income is low and weight loss resolutions are high. Landscapers, even in warm weather states, have a slow season in the winter. Having other methods of maintaining a positive cash flow can help during impending slow seasons.
Multiple revenue streams allow a business to use all of the talents the business possesses. Business owners bring a multitude of skills to their business. Let your talents show and find a way to use them to create additional revenue.
Multiple revenue streams keep you ahead of your competitors. Market changes will impact an industry. Your competitor has a similar slow season, but your multiple revenue streams allow you to remain profitable. Additional revenue streams can also add value to your business or service. Stand out from your competitors.
Multiple revenue streams support business growth. By providing additional services, you will be able to cross-sell and up-sell your customer. A wedding photographer that adds DJ services to the business could cross-sell a potential customer. A t-shirt printing business could up-sell if they also had a logo/design component to their business.
While your mental wheels are spinning furiously thinking about the revenue streams you can add to your business, don’t forget to stay true to your business vision and mission. Revenue streams need to add revenue to your business, not siphon energy needed to meet the mission of your business.
Don’t forget to inspect what you expect. Measure the revenue your additional revenue streams bring to your business. Track it diligently. This information will allow you to make fully informed decisions regarding each stream of revenue.
Posted in 10 Steps to a Healthier Business