If there’s one lesson business owners learned in 2020, it is the value in diversifying your revenue streams to safeguard your profit margins. Those that operate with all of their proverbial eggs in one basket can face overwhelming challenges if the market impacts that revenue stream (like live events, as we have seen). Rather, it’s best to earn profit from multiple directions.
Of course, a diverse business model looks different for everyone. Some entrepreneurs take their industry know-how and start podcasts, blogs, and other media platforms that generate ad revenue. Others may consider launching product lines for passive income opportunities to bolster their service-based companies. Still, others choose to start a secondary brand in a different space.
Regardless of which direction is the best fit for you, you may be wondering: “How in the world can I handle all of this? I’m already so busy!”
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Every entrepreneur would sign up for an extra hour each day. While we may not be able to persuade Father Time in our favor, we can still take the proper measures to manage our time, increase productivity, and focus our energy where it is needed most.
Here are some best practices to keep all of your profit-driving projects moving forward.
Don’t bite off more than you chew.
Needless to say, branching out with new endeavors takes time and energy. You must dedicate weeks, if not months, to research, preparation, and launch. You know your capacity best, so set the boundaries you need to protect your business and your wellbeing. Do not go full-steam ahead on a new podcast or e-course if your current business is in a growth period and you are having a baby in a few months!
Give yourself some grace; there will always be time to pick it up when you have more space in your schedule and your mind. In the meantime, see if there is a way to diversify your revenue within your existing business. Developing digital content as an e-product or introducing additional services can be a small but impactful way to grow your profits!
Keep a notebook handy–always!
If you’re reading this, there is a good chance you are a creative. As a fellow creative, I know how it feels when your mind is going a mile a minute! Coming up with exciting ideas is a piece of cake, but taking action on those thoughts? That’s another story.
My go-to strategy for taming the wilderness of your creativity is to keep a notebook at your side at any given time. That way, you will be able to jot down any worthwhile ideas that intrude on otherwise important moments. For example, if you are working on a client project and come up with a brilliant digital product idea to solve their pain point, write it down! You will be able to revisit it later with a clear head once you’ve finished up the work at hand.
Consider your team needs.
You know all of those entrepreneurs that you follow on Instagram? You know the ones… the big names that have millions of followers because they worked so hard to get there. Well, let me let you in on a little secret: They did not do it alone. Every success story you see has a team of people working in the background to make everything come together seamlessly.
Of course, this does not necessarily mean everyone has a robust staff of experts doing all of the work for them. Those success stories are still inspirational because they built the team that took them where they need to go! Consider the support you will need to achieve your revenue goals. If branching out with a new venture means you need to hire a store manager or a social media specialist for your existing brand, do it! If you need to onboard a web developer to bring your dream software to life, write that job description!
It’s worth noting that our teams are not always payroll employees or contractors. They are also the people who support us outside of business: our spouses, parents, siblings, cousins, friends, colleagues, and mentors. Your personal “team” is arguably more important than the one in your business(es) because they motivate us to be our best selves and reach for what feels impossible.
Diversifying your revenue will be a long but rewarding process, so hold on and see it through. You will likely work some long days (and nights!) and you may feel like calling it quits at some point. Stay dedicated and keep the progress flowing; a growth period isn’t forever and you’ll soon find stability with your multiple profit streams.
Once those first few purchases from your new endeavor come in, you’ll know it was all worth it! Then, go ahead and pop the bubbly, sit back, and take a hard-earned rest knowing you’ve set yourself up for success. You deserve it!