How to Generate New Revenue Streams for Your Small Business

To grow your revenue, your business has to sell to more people or increase the amount it receives per sale.

To increase your revenue in either of these ways, you have to take advantage of every revenue opportunity available to your small business – especially in this economy.

Revenue streams are a source or channel through which your business makes money from selling goods or services.

Small businesses typically earn transactional revenue. 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 revenue source is not enough to sustain growth and is even dangerous. This is especially true as your competition and costs increase.

So, if your current revenue streams have flattened out or are generating lower sales, here are three sure ways to generate more revenue streams for your business:

1. Leverage technology.

This is, without a doubt, one of the most significant ways small businesses can increase revenue streams. In a world where more customers buy online, small businesses must leverage technology to offer their products and services to more customers.

One advantage of technology is that it is not limited to geographical locations like a physical store is. As such, it has unlimited potential to scale your revenue. Technology presents a few new revenue streams to small businesses:

• 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 – A large number of businesses are not tapping into subscription revenue streams. This stream 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.

2. Introduce A New Offering

In a bid to generate an additional revenue stream for your business, you can provide a novel solution to your customer’s problem. You can also approach existing problems in a more innovative way. Here are two revenue streams you can generate by introducing an innovative 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 an additional revenue stream. You can consult customers who are not sure what colour or paint type to use for their homes or offices.

• New product streams – Many businesses leverage their existing capacity and customer base to offer updated products to meet customers’ needs. The product could address the same problem they are already solving or a related issue they are already solving.

3. Develop New Partnerships

Many small businesses overlook the potential of working with other businesses to create more value and expand their reach.

But this has been proven countless times to work and be a cost-effective way for businesses to develop an additional revenue stream. Here are some ways developing business partnerships can generate new revenue streams:

• You can create a joint offering and leverage your network to sell to more people together than alone.

• You can leverage each other’s capabilities to expand your value offerings or create new products that are cheaper.

• You can also cross-market your existing products to reach new customers. This works when you and your partner offer complementary products.

There are unlimited revenue streams that a business can create if it wants to. However, ultimately, if it can’t execute those revenue streams effectively, it is an unnecessary waste of time and money.

If you need help generating new revenue streams, contact Mr Ted Iwere today!!!

PLUS: Whenever you’re ready, here are ways you can work with us in starting, growing and scaling your business:

1. Do you want direct advisory and mentorship and would like to work with me one-on-one? 

The Accelerator, our exclusive 12-month programme, is for entrepreneurs who are looking to increase their profitability, create more balance in their lives and are ready to become wealthy by building self-managing, owner-independent businesses. Click here to apply now

2. Buy my book, click here

3. To visit our YouTube channel, click here

Photo by RF._.studio

Please follow and like us: