Small businesses are urged to create new revenue sources, because multiple revenue sources ensure that there’s always cash flow. Like the old adage suggests, it’s never a good idea to put all your eggs in one basket. If the basket drops, your eggs are no more. If your industry trends shift, sales can suffer; if sales are your only means of income, your business can suffer.
Keep your business afloat, even during a slow economy, by diversifying your income streams.
Multiple income streams are a surefire way to keep a small business going, cash coming in and employees feeling secure. In my Pinnacle Mastermind Program, I work with business owners from all over the US for an entire year, supporting them to create new products and services, expand their reach and multiply their revenue.
Below are five suggestions for creating additional income streams. Apply these suggestions to your business or use them as a jumping off point for brainstorming….
1. New Products and Services
Companies who offer more than one service or product often do better than companies who only offer a single thing. Imagine your company sells zebra printed headbands. It’s 1988 and the market is booming. Soon, no one wants zebra printed headbands anymore. What do you do? You diversify. You sell other headband prints, like camouflage. You begin selling bracelets, necklaces and other accessories. By keeping up with trends and offering more products, you’re ensuring there’s always income.
2. Expand Your Presence
Build upon what you’re already selling by taking it online, globalizing or developing a modern application. If you haven’t set up online sales, it’s essential to do so. You can increase your sales through a quality website, even to a global level. E-commerce is a multi-billion dollar industry and allows you to carve out your niche and earn additional revenue from online sales. Furthermore, you can sell your service or product via an application users download to their phones and devices.
Perhaps you’re in an industry that could benefit from advertising sales. You could sell advertising to companies, especially if your product is in the hands of a lot of people. You’ll be able to depend on your physical sales and the sale of advertising space. This works especially well if you’ve developed an application. You’ll be able to sell premium, ad-free versions of your app, as well as sell advertising space in your free version.
These days one of the most vibrant and inexpensive forms of advertising is social media. Go beyond just Facebook and Twitter–explore new exploding networks like Pinterest and Vine.
4. Teach Your Trade
You can teach your trade to others in your field for a profit–this may include tutorials, training courses, hosted events or consultation. Your fellow small business owners may be new customers, rather than the competition you’ve always thought they were. By offering business to business services, you’re also delegating yourself as an expert in your field. It’s building you up and could result in a larger, more loyal customer base.
5. Diversify your Market
Finally, it’s time to expand your customer base. Just because you’re used to selling headbands to teenage girls, doesn’t mean there isn’t an adult headband market. You’re ensuring future cash flow by opening yourself up to a diversified client base. Try and develop a marketing strategy that will sell your products and services to new types of people.
If you have a business and are ready to move beyond the dollars for hours model, multiply your revenue and create a larger impact on your target market, lets talk about how The Pinnacle Program can support you.
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Voice for Business Success
Allison Maslan, CEO of Pinnacle Global Network, The World Leader in Scaling Businesses. She is the Wall Street Journal Best Selling Author of, Scale or Fail, which is endorsed by Daymond John and Barbara Corcoran of Shark Tank. Allison’s built 10 successful companies starting out at age 19. Her client list has included Ben & Jerry’s, Supercuts, Charlotte Russe, and Allstate.
Now she and her team of CEO Mentors pay it forward by helping business owners scale their companies, fast-track their success and create a more meaningful life. The Pinnacle Global Network, her private mentoring and mastermind enterprise has guided thousands of business owners over the past 10 years. Allison’s been featured in Inc., Success, Fortune, Fast Company and Forbes Magazines, is a regular contributor to Entrepreneur Magazine and a featured expert on ABC, CBS, NBC, CNN and Fox across the US. Allison has also hosted her own podcast, The Scale or Fail Show, since 2011.