On any given day, you’ll find a news story about a local or national retailer downsizing or changing their business model. Some go out of business completely because they fail to focus on their customers and acknowledge how technology is constantly changing the shopping experience. Remember, Blockbuster?
There are some businesses, large and small that realize the old way of doing business won’t grow their business or their bottom line going forward.
So, what can a small business owner learn from what’s happening in the market and how can he/she diversify their revenue streams?
Below are three revenue streams that small business leaders can consider including in their current business model.
- One very popular revenue stream that is growing by leaps and bounds is online learning. The industry is projected to be worth $325 billion dollars by 2025. Online learning offers a vast range of benefits. The thing I love about online courses is that once it’s created, the income potential is unlimited.
Here’s how this revenue stream could add 6 figures to your business.
Enroll 25 people into the course quarterly: (25 people x 4) = 100 people
$1,000 (course fee) x 100 (# of people) = $100,000
- When you’ve built a successful business there are countless things you’ve encountered and learned along the way that would be extremely valuable to someone looking to start a similar business or looking for ways to grow a similar business. With this second strategy, you create a service where you show others how to do what you do. For example, if you’re a speaker, you create a service to teach others how to start a successful speaking business. Even if you sell a product, you can still show someone else how to start a similar business.
Does this strategy take money out of your pocket? NO! Actually, it puts more dollars in your pocket. Using the same data points above, this strategy is another way to expand and diversify your revenue streams.
- This revenue stream is all about saving a client time and works especially well with service based businesses. Let’s call this option the one stop shop. For example, instead of a client spending hours looking for all the people they would need (photographer, hair stylist, make-up artist, personal stylist, videographer and branding expert) to help them with a photo and/or video shoot, you, the business owner provides a “one stop shop” option that includes everyone they would need.
Obviously the fee for this type of service can vary depending on a variety of factors but let’s assume that the fee and revenue generated from this service is as follows:
Service Cost: $2,000
Number of one stop shop packages sold per year: 50 (4 clients per month approximately)
$2,000 (service cost) x 50 (# of people) = $100,000
We’ve gone through the revenue streams to help expand your business, but I’ll be honest, it takes a clear strategy and plan to bring it all together. Learn the best revenue streams to fast track your profit and breakthrough income barriers when you book your private Make More Profit Strategy Session today.