83. Creating Multiple Revenue Streams In Your Small Business
On average millionaires have 8 streams of revenue.
I’m sure that COVID 19 has you rethinking some things in your business, including how to move forward. In this week’s podcast episode I wanted to give you some food for thought on how to diversify your business revenue. I came up with 6 different options for you to consider now so that you can begin implementation before the lockdown is over and be miles ahead of your competitors, ready to serve and still meet (and hopefully exceed) those 2020 goals you set a few months ago.
Why create multiple revenue streams in the first place?
You may be saying to yourself, multiple revenue streams? That sounds complicated. I assure you it’s not. This is why I break it down into simple terms in Episode 83 and give you the edge on not just surviving but thriving after we all get to leave our houses and dance in the street. How many of you miss hugging? I’m not even a huge hugger, but I miss it for sure!
Here are some of the best reasons to create multiple revenue streams. First – it will help you navigate and alleviate this very circumstance we have happening right now. It will also give you the mad skills of thinking outside the box before things get out of hand, the bills pile up and you are wondering how the heck to fill out the paperwork for the small business administration. You will have a plan in hand and be cool as a cucumber. Diversification in your business will also help you avoid the recovery hump that most businesses will feel because you will be serving customers during any circumstance. Lastly, having multiple streams of income will save you time, money and ultimately help you avoid the ups and downs between selling and delivering your products and services.
Who’s ready for some diversification tips? 🙋♀️ (yep, me too!) If you’re asking what can I do check out these ideas ⬇️ ⬇️ ⬇️
#1 – Develop affiliate partnerships.
What the heck are affiliate partnerships? They are the opportunity for you to make some dough on products and services you already use by referring them to other people. I give tons of examples here in the episode, specifically for restaurants and the affiliate partnerships I have created for my business. But for your curious mind, here is an example. Say you use a specific reservation company for your restaurant. They have an affiliate program (referral program). You sign up and start to refer that company to other restaurants and businesses (think salon, dentist, orthodontist, etc.). Every time one of your referrals becomes a customer, you make extra money from that reservation company. Bada-bing bada-boom it’s in your account. Just like magic. This also works the opposite way. You can pay other businesses to refer you, new customers.
#2 – Add new products or services to your repertoire.
This is actually easier than you may be thinking it is. If you’re saying to yourself, I don’t have any extra products or services – stop right there – because this next idea will blow your mind 🤯. You can ask your customers to wave their magic wand when it comes to something you offer and get the answer of what to add. Let me give you an example. If you are a restaurant and you have a special spice blend that you use with all of your beef dishes. People constantly remark on that spice, wish they could have it at home or ask for the recipe. That is a giant clue 🔎 that your customers would pay for that spice blend. That becomes a new product for your business. I have lots of other ideas and examples in Episode 83. Be sure to head on over and give it a listen.
#3 – Create merchandise to sell.
This is a great way for your customers to promote you, your brand and keep you top of mind. One of the examples I give in the episode is a winery I visited recently with a friend. They had an etched glass with the winery name that they packaged with a tasting. You got to use your own glass and then take it home as a souvenir. Now every time I use that glass I remember that outing with my friend, but all the winery. Because . . . wait for it . . . their name is on the glass. What merchandise can you add to your product line up to diversify this income stream? Come tell me in the Facebook Group.
#4 – Create additional services that you can sell.
This was my favorite part of episode 83 because I go on a little riff. You never quite know what will come out when you are recording – but this part right here was gold. I used several examples of what restaurants could offer as additional services, but this is so applicable to any business. Brainstorm how you can add more value to your audience through education or training. Here is an example that wasn’t even in the episode (I bet you’re glad you read this aren’t you?) if you own a carpet cleaning company. You could create a home maintenance video series. Packed with ideas on how to remove common stains correctly. What will happen to the carpet if you don’t get to the stain quickly enough, what to do if stains reappear and how to vacuum properly. You could even partner with some stain removal companies and earn affiliate income on the stain removal products you recommend (review #1 if I lost you there.)
# 5- Can you change your business model to serve more people?
For example, would you be able to shift from just serving customers to also serving businesses (or vice versa)? I gave a few examples over her in the episode, but I wanted to give you one more that’s happening right now. American Giant typically sells apparel to consumers, but they have recently stepped up to partner with hospitals, emergency workers and the government to sew only masks. This is stepping outside of their normal role and has a dual positive effect. First, it is helping them establish their brand with new vendors and second their current customers (and even people who didn’t know about them previously) now see them as heroes. What can you do that is similiar?
# 6- Ask your customers what else they want to see.
Do they want your napkins to use at home? (affiliate partnership). Do they love your bathroom soap? Do they want your dishes? Do they want to make linguini alfredo just like you do? (trust me they will likely only do this once because it won’t be quite right). You get the idea. Asking your customers for their input is NEVER a bad idea and will likely wield a plethora of intel you couldn’t have gathered any other way.
There you have it, six different ways to diversify your revenue both during and post-crisis mode. Businesses who have the ability to spread their offerings across multiple avenues and think outside the box will be the businesses that thrive and survive.
Which of these will you be implementing first? Head on over to the Facebook Group and share what you’re excited about adding to your business’s revenue menu.
Listen to the entire episode here:
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