Long-term sustainable success can be achieved by diversifying revenue streams. When a business has multiple sources of income, they can withstand disruptions and economic downturns. 

During pandemic-related lockdowns, restaurants had to pivot quickly to focus on carry out options. Some restaurants went so far as to create offerings such as online cooking classes and premade frozen meals. When things returned to “normal,” select restaurants established catering offerings.

When I started my consulting firm, I focused on business plans, budgeting, and helping businesses access capital. While it was satisfying to help a client reach their goal, such as obtaining a business loan, the project eventually ended. I had to consistently fill the pipeline with new potential customers. 

Now we offer Fractional CFO services which allows our clients to continue to work with us for financial reporting and planning on an ongoing basis. We’ve looked for ways to deepen and maintain existing relationships. 

What are some ways to diversify revenue streams? Businesses can offer complementary products or services. They can also expand into new industries or markets. This allows a business to reach new customers or deepen the relationship with existing clients. It may make sense to ensure that each client represents no more than 10% of total sales.

Brick and Mortar stores can take advantage of our digital world. There may be an opportunity to sell products online or offer a virtual class or experience. A business may also use an online presence on YouTube or other media channels to obtain ad revenue.

Customers may want to interact with your brand in a unique way. Businesses can offer classes, events, online courses, and workshops. This could be offered as a one-time purchase or a recurring subscription.

Another way to diversify revenue streams is to partner with other businesses through affiliate marketing, referral fees, and promotion of products and services.

Some businesses use subscription models to plan for inventory needs and lock in future sales.  This makes it convenient for your loyal customer base and also keeps them engaged.

A business owner can also create more revenue streams by investing in income-generating assets. 

As you can see, there are many ways to diversify revenue streams which will lead to long term sustainable success.

To learn more about LonaRock, LLC and our business finance consulting services, please visit our website at www.lonarock.com or contact us directly at 234-217-9033.  We look forward to helping you reach your financial goals and helping you obtain the best possible financing for your company.