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Growing Your Business with Multiple Revenue Streams

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The Spotz Guide for Sellers

growing your business

Growing Your Business with Multiple Revenue Streams

Once things are rolling with your business, and you’ve hit a good stride with selling your main set of products (with great profit margins!) it’s time to start looking to the future. Businesses grow by building out into different areas, offering customers a number of products that they might like. By increasing the number of products or services that you offer, you increase the number of potential revenue streams. This guide will show you why that’s important, and how to do it!

Multiple Revenue Streams: Why it Matters

We’ve all heard the old saying about putting all of your eggs in one basket, and that’s for good reason. In business, people’s appetites for certain products tend to change over time. Sometimes they want more – resulting in busy periods for your business. But it’s also possible that demand for your main product could decline – resulting in an overall decrease in your business’ revenue. The solution to this problem is diversification – selling different things to create distinct revenue streams.

Diversification: How to Do It

First off, stick to what you know, and what your business is good at – creating new revenue streams doesn’t necessarily mean you need to reinvent the wheel in your business. One thing you may not have realized is that no matter what products you sell, there are things that could complement your products, such as accessories, support services, warranties, or modified versions of your existing items.

By offering these, you’ll be able to create different streams of revenue from your existing base of customers, but also, you might create streams of revenue from yet untapped pools of potential customers. With a bit of creativity, this is a brilliant way to grow your business.

Some Suggestions from Our Team

As mentioned above, some ideas work across the board for small businesses. These ideas for diversified revenue streams include:

  • Partnerships with outside businesses
  • Accessories, tools and carrying cases
  • Modification kits that expand the use-cases for your products
  • Referral Programs: Partner with your customers and give them an incentive to do the selling for you – eg. ‘Receive $5 for every person that uses your referral code at checkout.’ It works!
  • Is there room for your products-based business to sell related services, such as repairs, classes or crafts nights? These streams also raise the possibility for increased brand awareness.

Creating new streams is something you should try and keep in your mind regularly – it’s unlikely that by just sitting down one day to ‘brainstorm’ ideas that you’ll come up with your next big project. Instead, observe how your customers engage with your business – if there is something they keep looking for, but you don’t sell yet, explore that option!

Customer feedback is an amazing way to figure out where your business could go next – and where potential future revenue streams lie!

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