AVOID MULTI-FOCUS and
FOCUS on MULTI-INCOME STREAMS
by Sue Stebbins
Sound like an oxymoron? How can you maintain a quality focus on your current client base while successfully generating new income streams? Why do you need to generate new income streams? What is the impact if you do not have multiple revenue streams?
As the economy trends down, job insecurity fears trend up. Fears of any kind cause you to lose focus. A loss of focus can mean a loss of income - ah, a self-fulfilling prophecy. What can you do to combat those fears and loss of security, loss of income? The old saying, "Don't put all your eggs in one basket" is very fitting in today's economy.
Developing multiple income streams, whether you are a small business owner, a service professional, a consultant or a CEO is critical to solidifying your future success. Everyone is cutting back where they can and having only one primary source of revenue puts you at a distinct disadvantage, creating a single point of failure.
So how can you develop multiple revenue streams and not lose sight of your current customer base? Quality Focus. The ability to develop a strategic focus on the future and maintain a solid operational focus on the present is how. Be creative and look for needs not yet met in your existing client base.
For example, if you are a manufacturer of a single product, what will happen if the demand for that product declines, particularly in today's economic crisis? Your business will decline, profits decline, etc. You see the picture. So what can you do? For example, if you are a manufacturer of a consumable item like soap, that is probably not the first item that the consumer will cut back on. However, what makes your soap the soap that the consumer will buy? The answer to that is the first step in diversifying your current income streams.
Here are other examples in this scenario to expand your income streams outside of your current revenue source.
- Expanding your marketing strategy to increase your customer base - the more clients, the less exposure you have if your major customer is no longer able to purchase your product.
- Develop a new product - if you manufacture hand soap, should you also expand into laundry detergent or dish detergent to increase the potential clients?
- Is your product environmentally friendly? Is the packaging? Today people want to preserve what we have and the better the product is for the environment, the more appealing it is to the average customer. The more recycled materials you use in the product or packaging, the more cost efficient your operation can become.
- Are there partners in your supply chain that can benefit from something that you do not offer? For example, are there ways for you to sell your product or your overstocks to the suppliers that provide you raw materials to manufacture your soap?
- A key to future success is to ASK. Ask your customers what product or service they need that you are not providing? Ask your employees what ideas they have? The more insights you have, the more creative you can become with your ideas and pursuit of expanded revenue streams.
- Look end to end of the supply chain of your product or service and find a niche that has not been fulfilled yet. With today's technology, possibilities are endless. In today's economy, people are more open to new products or services if they perceive a better value for their dollar.
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