How to Expand Revenue Streams
Many small businesses are a “one-stop shop” for a product or service. Often, they will have one or two products that will be their bread and butter. To help small businesses to develop a new revenue stream to offset losses, we have compiled a list of the best revenue streams. From taking inventory of your abilities to seizing potential opportunities, these tips may help your small business develop a new revenue stream to offset any losses. Learn more about how your business can expand revenue streams for more cash flow.
How to Expand Revenue Streams
It might seem monumental to create a new source of revenue for your business, but it doesn’t have to be. In fact, you can even expand on revenue from an existing business model. The best businesses have multiple sources of revenue. We hope that these ideas inspire you to see outside the box as well as reap the rewards as you increase your bottom line.
Add Services To Existing Product Lines
One of the easiest first steps is to expand on what you already have. For instance, let’s say you launched a product line a year ago and it has done well. So, what else could you release under the same umbrella category that would add to your sales? Would there be potential products or services that could attract current customers?
As a tip, it helps to think of not what you could easily create, but what your customers could genuinely use. An example could be if you are a business that sells custom bikes parts. You could also start selling an accessory kit that includes a bar lock, an attachable water bottle and a neon signal light for night riding. This kit could be offered at checkout for an additional cost, or at a discount for new bike purchases.
On the flip side, let’s say you offer a digital-only product. You might want to expand into the revenue of physical products. You can even start selling physical versions of your digital products.
Offer Online Courses
Another specific avenue that can help bring in additional revenue is to offer online courses on topics where you would be considered an expert. It is easier than you think to get started on creating online courses and education. As a business, you already have specialized knowledge about your industry. This is the first stepping stone to setting up an online course.
The popularity of online courses has exploded since the pandemic. As a result, students, professionals, and businesses looked for alternative routes for in-person learning. You can sell and advertise a course on your website. Additionally, there are so many online platforms for selling courses, some of which include:
Sublet Your Office Space or Repurpose your Space
Now that COVID shutdowns have been lifted, businesses and employees are starting to return to the office. Many of which are exploring hybrid options. If you have an extra office space, a good way to generate revenue is to sublet your office space to other businesses. Perhaps you have an extra meeting or conference room. You can also repurpose your space to generate revenue in other ways. For instance, many restaurants during COVID offered delivery or meal prep services to offset the lack of patrons.
Create A Membership With Tiers
If your business offers a service, your missing out on additional revenue by not creating different subscription tiers. These tiers are similar to the cable TV model: the customer pays for blocks of entertainment (the product). There are so many ways you can integrate tiered membership into your business. For instance, a “free’ version of a website builder could offer basic tools to get started but the “pro” version has more expansive features for a fee. Memberships are a great way to convert loyal customers into regular paying subscribers.
Develop Strategic Partnerships
Sometimes, one of the best ways to new revenue streams is through the partnerships that you make. What makes it efficient is that it doesn’t require new products or services. Rather, it requires a new approach to connecting your products or services to customers. Partnering with like-minded brands or service providers opens up the door for referrals. This is a mutually beneficial partnership that makes it worthwhile for both parties.
Become A Recognized Industry Thought Leader
Your specialized or niche industry knowledge through your business already makes you a perfect candidate for becoming a thought leader. You already have enough information to share leadership on a variety of platforms. Becoming a thought leader can open doors to new opportunities for both you and your business and can transform your brand. Overall, it is a reliable way to elevate your reputation and build brand equity and attract ideal customers.
Other Ways To Expand Revenue Streams
- Increase Your Geographic Reach
- Leveraging Your Existing Customers To Create New Offerings
- New Business Models
- New Markets To Target New Customers
Benefits Of Diversifying Revenue Streams
If the pandemic in 2020 has taught us anything, it’s that any market can become an unpredictable place. Adding new product revenue streams to your business have offered many benefits including:
- Increased growth
- A high-margin, future business model
- Revenue diversification & improved financial stability
- Increased marketability if you want to sell your business
- Continued leadership in your industry
- New data and insights
Through creating multiple revenue streams, you can build more confidence in the future growth of your business. Through being proactive, you will be able to attract new customers and give existing customers inspiration to buy more. When you have multiple streams of income, you won’t find that you are hit as hard if your main source of revenue takes a hit. At Faceless Marketing, we can assist you with finding the best revenue streams to integrate into your business.
About Faceless Marketing Firm
At Faceless Marketing, we have helped countless businesses grow their brands – from planning to execution and optimization. As a marketing agency, we provide a full range of creative services, content creation, and data analytics.
As a top digital marketing firm, we stand by this mission. Reach out to Faceless Marketing for a quote or FREE consultation. Call 1-800-357-1299 or email firstname.lastname@example.org and check out our YouTube channel for more content.