Friday, August 13, 2010

The Advantage of Multiple Revenue Streams


If I had to pick a theme for this week, it would be the importance of multiple revenue streams.  The Daily Worth talked about why having multiple income streams is a smart idea in an unstable economy.  Then Tara mentioned that Darren Rowse shared a breakdown of his varied revenue streams over at ProBlogger.  And I’ve been putting together a workbook that helps you create a plan for growing your business.  And it focuses on, you guessed it, having multiple revenue streams.
If you’re currently focusing your business in only one area, now is the perfect time to consider branching out into other revenue streams.  If you only sell on Etsy, why not add retail craft fairs?  If you rely heavily on the craft fair circuit, why not try wholesale?  Or what about adding custom work or design consulting?
Adding additional revenue streams keeps you from totally panicking if one area slows down.  It can also help combat the cyclical nature of retail – perhaps you do the summer craft show circuit, and as that slows down, your fall wholesale orders pick up.  And just as you’re sending out the last of your holiday wholesale orders, you can shift focus onto holiday e-commerce.
Yes, having multiple revenue streams means more to manage.  But it also serves as the foundation of a healthy business.
What revenue streams do you currently employ in your business?  And are you thinking of adding any in the near future?

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