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How can a small business develop a new revenue stream to offset any losses?
To help small businesses develop new sources of income to make up for losses, we ask financial experts and small business owners to provide the best advice. From counting your abilities to seizing potential opportunities, these techniques can help your small business develop new sources of income to make up for any losses.
Here are eight tips for small businesses to develop new sources of income to make up for any losses:
- Create new products and services
- Count your abilities
- Enter the international market
- Develop strategic partnerships
- Provide online courses
- Sublet your office space
- Seize potential opportunities
- Follow the market trend
Create New Products And Services
The best way to create a new source of income is to develop other new products and services where possible. Be innovative and hope to provide products or services that have never been seen before. This year, we expanded our product line to include TV screen protectors, which is a newly discovered opportunity for us.
Count your Abilities
When creating a new revenue stream, it’s important to take stock of your capabilities and processes. Your new source of income should be closely integrated with your main product, and the main product should not be subtracted from limited resources to ensure profitability. The key is to challenge how you view various forms of waste and determine how to turn it into money!
Enter The International Market
Since 2007, our business has been selling watches of fashion brands such as Emporio Armani, Tissot and Garmin. We decided to open an online retail watch store in the United States to develop our brand internationally. Sometimes, entering a new market can not only open up new sources of income, but expansion can also open up new ways of doing business.
Develop Strategic Partnerships
Sometimes, new products or services are not needed to develop new revenue streams. It only requires a new way to connect your product or service with customers. Cooperate with like-minded brands or complementary service providers to establish referral relationships. For our business, working with brands such as Mailchimp, GoDaddy and even SCORE has helped us establish connections with small business owners we like. For our partners, there is a common value transfer that makes the partnership worthwhile. Think about how to create value for partners, and then make suggestions.
Provide Online Courses
It is no surprise that many small businesses are struggling. Even if we begin to normalize, there are still income losses, trying to regain income. One specific way that can bring in additional income is to provide online courses on topics that you will be considered an expert. It is not as simple as people think, especially when you have knowledge that can be shared with other companies or individuals, and can also help them regain lost income.
Sublet Your Office Space
So many small businesses have been hit by all COVID shutdowns, so they must be creative to create new sources of income. Many restaurants use meal delivery and meal preparation services to make up for the lack of customers patronizing their business. Other types of companies will sublet their space to maintain business development during the economic slowdown. It all boils down to reusing resources so that you can still earn income to stay open. To stay alive in difficult times, you must be creative with what you have and what you provide.
Seize Potential Opportunities
Small businesses need to diversify their products to ensure that they don’t put all their eggs in one basket. As a historic hotel and restaurant in the picturesque North Georgia Mountains, we started to hold small weddings at the hotel. We realize that this is a huge opportunity that we did not take full advantage of. Since then, we have established our own wedding business and opened a new and larger wedding venue called Forest Lodge. We are very happy to welcome more brides and new sources of income for our company.
Follow the Market Trend
Sometimes, new consumer trends will bring revenue opportunities. For example, during the pandemic, the sales of boats and RVs have greatly increased. For our business, this means providing and marketing products, such as our onboard insurance policies. By tracking market trends, companies can adjust their marketing efforts and product lines to meet consumer needs.