FindItMore | An average millionaire has 7 streams of income. If you’re a millionaire, I’m 90% sure that you already know why and how to create multiple income streams for your business. But if you have launched your first business venture recently, then I presume you don’t have a proper idea about why and how you should create multiple income streams for your small business.
I know you have to be the Jack of all trades when you have launched your first business in town. You’re super busy and have to take care of even the trivial matters. Still, I would suggest you to spare a few minutes for reading this post and getting an idea about how to create multiple income streams for small business.
Trust me. You’ll thank your lucky stars later.
Why should you create multiple income streams for small business?
Diversification of income streams is important for all types of small businesses because they can face different kinds of problems in the future. For instance, in the case of retail business, they earn lots of money in the festive seasons. But what about the rest of the year? How will the retail companies earn money throughout the year if they don’t diversify? Plus, there is yet another problem small business companies need to seriously consider. Let’s say, 90% of the revenue comes from one big client. Suddenly, something happens to that client and he stops giving assignments to the retail company. This gives a big jolt to the financial health of the retail company.
The key takeaway is small businesses should have a broad client base and diversified revenue streams. This helps them to grow faster when they have diversified income streams.
How to generate multiple income streams
Multiple streams of income from your small business venture can help to boost your financial health. They can help you to reap profits and build a financial cushion against losses during the off seasons. Here are a few ways to create multiple income streams for small business:
(a) Post video tutorials: One of the great ways to establish yourself as an authority in your industry is to give online tutorials. You can hold classes on the products and services you sell. People who are interested in your products and services would love to watch the video tutorials.
Charge money for providing the learning materials like documents and audio files. That would be your other source of income. Initially, you have to work hard for developing the learning materials. But once you’re done, you can relax.
(b) Start affiliate marketing: If you don’t wish to sell products and services, then a good option for you is to become an affiliate. Affiliate marketing involves marketing and selling products of others on behalf of them. You’ll get a commission when your affiliate receives a sale from your marketing.
Don’t have any idea about affiliate marketing? Well, there are tons of websites from where you can get tips and tricks of affiliate marketing. You can work as an affiliate partner for plenty of websites like Amazon and Affiliate Network.
(c) Sell products related to business: Is your business doing well now? Well, in that case, you can offer more to your clients. Suppose, you have a flourishing salon in town. You offer various kinds of hair care services to your clients. You have received lots of money from there. Now you can sell hair care products to the clients who come to your salon. If you’re confident about your hair care products, then you can create a website and sell them.
Are there any downsides of generating multiple income streams?
There aren’t too many downsides as long as you create revenue streams in a way that is sustainable, and you don’t try to do it hurriedly. When you get a grip on the first revenue stream, you can think about launching the next revenue stream. Since you already have a firm grip on your first revenue stream, so it will be easier for you to focus on the next one. The biggest hurdle is to start the revenue stream from scratch. Once you can do that, it won’t be too difficult to maintain the revenue streams. Once you have learned the art of maintaining 2 revenue streams, you can plan to start the third one.
Too much hurry will bury your goals. So, think about having multiple income streams only when your primary business is doing well. Go ahead when you feel that there’s a lot more you can do with your small business. Always remember, your income potential is limitless. All you need is time and proper planning.