Small businesses can create additional revenue streams
Multiple revenue streams are crucial for any small business’s long-term success. In the current economic environment, many business owners are looking hard at their revenue sources and finding ways to improve their bottom line and their business’ overall sustainability.
Introducing new revenue streams means you don’t have to depend on a single source of income. If the global pandemic taught business owners anything, it was how quickly circumstances could change.
Building resilience is especially important if you have employees who depend on a regular paycheck or overhead expenses, such as rent, that you need to pay.
Fortunately, there are plenty of ways to bring in extra revenue without sacrificing daily operations.
Five additional revenue streams for small businesses:
Develop new products or services.
Increase your bottom line by developing new products and services that add value to your current offerings. Building a new product requires a significant commitment of time and resources. However, you already know what kinds of services and products your clients are interested in. Plus, you can leverage your existing network of customers to make sales. Also, consider creating product or service extensions. Think add-ons to your current packages or downsized, more affordable packages for clients with a smaller budget.
Collaborate with like-minded brands.
Strategic partnerships can help you connect your products or services with customers. Think about businesses whose offerings and clients are similar to your own and brainstorm ways you can create value in a partnership for them. For example, collaborating with a local coffee roaster might make sense if you own a donut shop. If you’ve got the coffee covered, you could work with a local artist who creates brand designs for physical products like coffee mugs or T-shirts that you can sell in-store.
• Offer classes in your area of specialty. Not only can training courses generate additional revenue for your business, but they can also help you build long-term relationships with your clients and expand your reach. To begin with, get customer feedback to decide what courses could benefit your clients the most. For instance, if your small business focuses on selling art supplies, you could provide weekly art classes. If you’re a software as a service (Saas) company, you could offer regular webinars and workshops on how to use your platform.
• Create a referral program. A referral program is a powerful lead-generation tool and can bring in customers you may not have met otherwise. To that end, offer your customers coupons, discounts, free items or premium tools when they refer your business to a friend. A loyalty program might be an excellent way to incentivize referrals and special perks for new customers.
Look for passive income opportunities.
Passive income requires time and effort up front, but it pays off in the long run. Try making downloadable items related to your business, such as e-books, zines, or digital art. If your business is more service-based, offering prerecorded online courses might be feasible. Keep in mind that even “passive” sources of income will need some updating from time to time to stay relevant.