This week's business tip: In order to be a successful entrepreneur, you need to develop multiple streams of income. And track the profitability for each income stream through accurate bookkeeping. Need help maintaining accurate bookkeeping records? Check out my Bookkeeping 101 course.
Whether you are launching a new business or have been in business for several years, one of the keys to remaining successful is to have multiple revenue streams.
It is very similar to investing. We all know the importance of diversification and not putting all of our eggs in one basket.
The same goes with business. A company must have several means of generating income. If you are an accountant, coach or therapist, you should have 1:1 services and at least one other offering that does not take up too much of your time. Such as workshops or online programs.
If you own a product-based business, in addition to your e-commerce site, your company should also have a presence in brick-and-mortar locations or vice-versa. You may also want to consider licensing your products.
If you have a lifestyle blog, you need to find a way to monetize your following. This could be through 1:1 services, brand sponsorships and hosting events.
In my business, I have a handful of 1:1 small business clients, a couple of large consulting projects, brand ambassador opportunities with large companies, speaking engagements, sponsored events and several passive income streams.
How Beyoncé built her $250 million empire?
Celebrities are the best example for creating businesses with several income streams. According to Bankrate's article in September, Beyoncé's empire is worth $250 million. And a small percentage of that is due to record sales. Her other revenue streams include tours, endorsement deals, a home-delivery vegan service, an entertainment management company and much more.
Take the next 20 minutes and brainstorm at least ten different revenue ideas for your business. Hit reply to this email and let me know what you come up with.
Danetha Doe (@danethadoe) is a business strategist and selected as one of the Top 40 under 40 accounting professionals in 2015 by CPA Practice Advisor.