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A Quick Guide To Generating Additional Business Revenue Streams

Businesses often focus on their core operations. And who can blame them? Focusing on what you do best is one of the best approaches for driving sales and generating profits. But simply concentrating on one thing isn’t always the best approach. Many of the most successful companies in the world diversify to add additional business revenue streams to their books. 

This approach risks being “spread too thin,” but it also helps to diversify income. If you’re only getting money from one source, that’s far riskier than if you have money coming in from multiple streams. 

So, what should your business be doing to generate additional revenue streams? Here are some of your options. Implementing just one or two of them should help you sleep better at night. 

Sell Assets You Aren’t Using

First, look into selling assets you no longer use. Many banks did this in the 2000s and 2010s, getting rid of branches and even stately homes they owned for training purposes.

Think about the assets your company already has. Can you sell them off in a fire sale and generate some money you can plow into risk-free assets, like Treasuries for income generation? Or can you generate rent from them directly? 

Also, consider whether your sister companies have any assets they no longer need. Again, these can generate additional income, directly or indirectly. 

Some additional examples could include renting out office space you aren’t using or allowing other firms to use unused parking spaces during peak times for a fee. 

Look For New Markets

Another tactic for generating additional revenue streams is to look for new markets. Finding an audience of people willing to buy your products can be a great way to improve income security for your firm. 

Brands do this all the time to reduce the risks they face. It’s why McDonald’s is in pretty much every country in the world. Even if somewhere like Japan is doing badly, another economy, like Australia, might be doing well. 

When looking for new markets, you can also scout for unserved niches. You might discover that there is a group of people in your home country who could benefit from what you sell but aren’t taking advantage of it right now. 

Niches can appear all over the place. The more you can exploit them, the better your firm will perform compared to the competition. 

Offer A Subscription Model

Another approach is to offer a subscription-based, valued-added model. These are perfect for smoothing income and ensuring you always have something coming in, even if demand is inherently seasonal. 

Subscription-based models should give your audience something new and interesting that they can’t get through conventional channels. For instance, you might offer them VIP access to something, or provide them with ongoing benefits to complement the products or services you sell. 

You want to make the subscriptions as attractive as possible. While they might not be as profitable as, say, a conventional pricing strategy, they are more predictable, and they are less likely to see cancellations that reduce income over time. 

Create New Content

You could also try creating new content to generate income. Selling courses and books could be a way for you to generate a side income alongside your conventional services. 

Many knowledge-based businesses perform these types of operations. For example, an accounting firm might sell a book on how to optimize accounts based on tax rules for a specific customer niche. Or, a public speaker might set up an online course.

Generate additional business revenue streams - Computer with stats on the screne
Photo by Carlos Muza on Unsplash

Add Revenue Generators To Your Premises

Another option is to add revenue-generating machines or devices to your premises. These can provide supplemental income you offset against your facility costs.

For example, many world-class ATMs for sale charge customers to use them. You can then collect these fees and add them to your income streams. You can also do the same with drinks dispensers, vending machines, and even arcade games. These require an upfront expense but pay you back over the longer term. 

Enter Strategic Partnerships

Finally, you might want to consider entering strategic partnerships with other businesses. These allow you to generate revenue and share it with the other firm through some mutually beneficial arrangement. 

The shape a partnership takes depends considerably on your industry. Coffee shops, for instance, will often be set up in department stores, paying rent to the owner, but at a discounted rate because they attract more customers. 

You also have a similar thing with affiliate marketing. When you begin advertising another company’s products, they will often pay you a commission for the privilege. 

We sometimes use affiliate links in our content. This won’t cost you anything but it helps us to offset the costs of the blog. Thank you for your support! The opinions expressed in this article are solely those of the writer and do not necessarily represent those of The We Spot, its employees, sponsors, or affiliates.

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