Welcome back to Your Greatness Magnified. This is part four of a four-part series that’s helping you to get really powerful in your business. Whether you’ve started it or whether it’s to come, I hope you find this last lesson really juicy. Diverse revenue streams. In other words, you’re not only offering one service or product. Aim for a range of ways that people can work with and buy from you.
A diversified revenue stream approach recession, transgression and obsession-proofs your business in a number of ways:
- There’s only so much of me!
Often, I hear from folks who have businesses is that there’s only so much of them. That they’re tapped out on their time. So true! There’s only so many minutes in the day and for most of us (maybe Elon Musk is an exception), we want other things in life than just business! If your entire business is built on you providing direct service, responding to customer needs, answer the phone, and generating the business pipeline, then there is an absolute limited capacity. Let’s hope you don’t burn out before you reach it!
- It’s out of my control!
Another thing I hear from people is that they have things external to them that happen. Things such as, recessions, natural disasters, family challenges, that stop them from being able to generate revenue in their business. Then they get really worried and fearsome that their business is going to go down the drain, that they won’t have clients when they return to their business. The suggestions that I’m providing here will help you to recession-proof, life-proof your business.
- I’m burnt-out.
People sometimes tell me they feel really burnt out – both entrepreneurs and intrapreneurs! We want to make sure that you continue to love your work. Remember part two where we talked about your passion? How can you stay passionate about your business?
Diversifying Your Revenue Stream to Reduce Risk, Reinforce Brand and Elevate Passion!
We’re talking about diversifying your revenue streams in this blog and what it can do for you and your business. Here are a few ways to approach this:
Strategy 1: Consider Other Ways to Serve & Deliver Value
Think about what services you offer or are already offering. Could you offer them in other ways? Could you make them more scalable? For those of you who are professional coaches, for example, you probably do one-on-one coaching. Could you offer group coaching? Could you create a virtual coaching program? Could you host a mastermind group? It may be more affordable for some people and allow you to serve more people! Win-win!
Strategy #2: Amp Up your IP
The second thing that I encourage you to think about is what’s your intellectual property (IP). How can you make it more accessible, digestible and shareable? How could you produce products and services from it that solve a business or personal need?
For example, as a recognition expert with a trademark – FROG Forever Recognize Other’s Greatness™ – I found folks asking for ways to bring FROG back to their workplaces. So, we put our best exercises in a workbook, and when we had too many for just one book we expanded to have a membership-based site. I also have an online store and sell at my engagements products folks can use to recognize from thank-you cards to FROG charms to little squishy frogs. As soon as someone says they have a need I think, so I have IP or a product from my IP that could help and then I try to find a way to do just that.
Strategy #3: Producing Products that Serve
As discussed above, a way to translate your IP into products is listening to your customers about how else they need your support and find a way to fill that need. For example, a common issue for trainers is every time they do a workshop they’re creating content and handouts from scratch. The issue for participants is they have a shelf full of spiral-bound handouts they never look at until they pack up their office! So why not have one product, such a professionally edited, designed and printed workbook, that has everything your participants would need and more! After the initial costs, it likely will be cheaper to print than a bound handout, easier to pack/ship and have greater perceived value and usefulness to participants. Again, win-win!
Strategy #4: Members = Recurring Revenue
Consider a membership-based site. How can people keep tapping into all of your new, exciting, cool stuff and pay you either weekly or an annual fee to be able to access it, and that you keep adding value to? That really helps you to scale out your business so that your revenue doesn’t only depend on you showing up, but also serves people 24/7. Want a great book on the subject? Check out The Automatic Customer.
Strategy #5: Prepare for Breakage
One of the questions that people get very fearful about when they start to think about just how awesome and how powerful their business is, is what’s the first thing that would break if your business grew 10 times overnight? That is how you need to scale up your business. Whatever would break, how do you build it into a scalable system? Prepare for breakage. Don’t think small. Assume you’ll grow big, and imagine it happened way sooner than you were ready. Build a plan to manage it and then work your business that way! You’ll either build your biz faster or you’ll have more time for you or both!
I hope you have enjoyed this four-part series. It was dedicated to all the incredible entrepreneurs that I work with in coaching, all the people that I worked with in the past that want to start their own businesses but aren’t quite sure how to get started, and the many folks who have coached and mentored me along the way. Please share this. Be generous. Give this to folks and tell them in the subject line why you know they are already uber successful in their business – whether they’ve started their biz, they’re new, or just need to hear that. Recognize them and do that by sharing this video with them.