How to Identify and Create Many Revenue Streams

 

The idea of creating many revenue streams used to overwhelm me. Just the idea! I mean, I was already struggling to get one business off the ground and someone talks of setting up multiple businesses? Imagine! I’ve since realised that the concept isn’t that complicated. It’s just about looking at ways of making money from various aspects of your venture. To create multiple streams of income, keep your eyes and ears open.

1. There’s no small idea. When Judith started a business of baking cakes, she didn’t know what to do with the leftovers she got after slicing and cutting cakes to achieve certain designs. Her young kids loved eating them as snacks from school, but she didn’t want them to get hooked to pastries. One day a group of school kids walked in her shop looking for something that wouldn’t cost more than 10 bob. A bulb went into her mind. She quickly cut the leftovers in tiny pieces, packed small quantities in tiny polythene bags and the kids walked out of her shop carrying each a 10bob piece of cake. The word went round and soon her shop was making a tidy income from ‘Kiddie Cakes’ as she christened them.What would have happened if Judith had chased away the group of school kids? By choosing to respond to their need instead, she got herself an unexpected category of customers
2. Listen while engaging with customers and take their feedback, both positive and negative, seriously. While delivering wedding cakes, some of her clients would ask Judith to recommend florists or tents providers. She did that gladly until one day it hit her that she could offer a full package for the whole event.
3. How much will you charge for the new product or service? Judith didn’t think twice before offering the Kiddies Cakes at 10 bob each; because the cakes she cut them from were already paid for by the adult customers. When you have identified another income generating activity though, take time to calculate your costs and come up with prices that will keep you in business.

Today identify another income generating activity from your business that you hadn’t thought of, or that you had dismissed. Write it down and detail the action you are going to take in order to start generating revenue from it. Then come back here and share what you got from the exercise.

 

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