Every business owner wants to see their business grow. But you can’t grow your business without growing your revenue.
For many businesses, pursuing that growth is a constant but necessary struggle to survive. To grow your revenue, your business has to make more sales – you can’t escape that, but you can increase your revenue streams so it’s easier to generate more sales. Put it this way, your business has to put its foot in as many doors as it can to improve its chances of bringing in more money.
A revenue stream is simply a source or channel through which your business makes money either from the sale of goods or the provision of services.
A typical revenue stream for many small businesses is transactional. These are one-time revenues from the sale of a unit to a customer like a supermarket selling groceries to a customer.
But relying on just one stream of revenue is not enough to sustain growth and is even dangerous especially as your competition and costs continue to increase.
So, if your current streams of revenue have flattened out or are generating lower sales, here are two sure ways to generate more revenue streams for your business:
- Leverage Technology – This is, without doubt, one of the biggest ways small businesses can increase their revenue streams today. In a world when more customers are making purchases online, small businesses must leverage technology to offer their products and services to reach more customers. One advantage of technology is that it is not limited to a geographical location like a physical store is and as such, it has unlimited potential to scale your revenue. There are a few new revenue streams that technology presents to small businesses including:
- Online Listing – Showcasing your products or services on your website, social media, or eCommerce platforms like Konga, Jumia, Selar, Amazon, etc. Would exponentially increase the market for your products across Nigeria and the world.
- Subscription – Enough businesses are not tapping into the benefits of a subscription revenue stream. The advantage of this stream is that it guarantees recurring revenue for your business. Thanks to technology today, you can create and collect revenue regularly from your customers for your goods and services with little or no investment.
- Introduce A New Offering – In a bid to generate a new revenue stream for your business, you can provide a new solution to your customer’s problem or approach existing problems in a new way. Here are two revenue streams you can generate by introducing a new offering:
- Service stream – Create a service like consulting or after-sale service to capture more value. Say you’re a paint manufacturer who wants to generate a new revenue stream, you can provide a consulting service for customers who are not sure what color or paint type to use for their homes or offices.
- New product stream – Many businesses leverage their existing capacity and customer base to offer new products to meet the needs of their customers. This product could be aimed at the same problem they’re already solving or a related problem.
There are unlimited new streams a business can create if it wants to but ultimately, if they can’t execute those revenue streams effectively, it would only be an unnecessary waste of time and money.