How to know when it's time to have another income stream to your business
If you are struggling with growing your business, then it can seem like a really great idea to add another income stream to your business, so that you can increase your revenue, since you’ll have more stuff to sell...right?
It’s not that simple and I want to share when it’s a great idea to add another revenue stream, or when it’s not such a great plan.
The mistake that I see so many business owners make (especially in the first couple of years) is adding income streams before they have really focused on, and optimised, their core service/program/course/product (and I’ve done this in the past too!!).
If you are struggling with growing your core offering, then the key is not to just add in something else...it’s key to focus on the core and…
- Making it better
- Expanding on it
- Driving more traffic
- Optimising sales
- Getting really good at putting it out there as much as possible to attract your ideal audience
- Using multiple strategies for promotion
You really need to nail down your core offering and get REALLY good at that before adding something else into the mix which will divert your time, energy and money if you want to grow that next revenue stream properly.
I think, fundamentally, people are giving in too soon, on their core offer when adding in a second, third, fourth (etc!) revenue stream, before they have really nailed down their first and got that working like clockwork.
Now, if you have really got your core offering working for you...if it is bring you consistent income which you are happy with, if it is running as efficiently as it can, and you have lots of people singing its (and your!) praises as a result...then it’s time to add a complimentary income stream.
What do I mean by that…?
Well, let’s say your core offering is a 1-2-1 service, perhaps it’s now time to add a Mastermind, or group coaching program, a membership site, a live event, or a course.
The key here is that your business is ready for the next level...it’s not about adding an income stream out of panic (ie lack of sales in your first income stream), it’s about doing it strategically, and maintaining what you have previously created and knowing that in scaling and moving to that next level you are not going to harm your first stream either (so you have systems in place, perhaps a team helping out which means that first stream is not forgotten or ignore in favour of the shiny new thing...the shiney new income stream idea).
Most business owners move to adding a second income stream MUCH more quickly than they should.
I often have clients come to me with great new ideas for products or services they want to add to their business and often they are great ideas...but...when their core offering is not working great for them...I usually advise to hold your horses!!
You need to stick to one offering for AT LEAST 18 months, before adding in another...because going faster than that, usually means that you stretch yourself way too thin. And in that 18 months, you need to really make sure that your core offering is performing before moving on too.
So are you ready to add another income stream?
Or should you be working on getting your core offering working better for you first?
Be really honest with yourself.