Finding new revenue streams in difficult times like these can be a great strategy to make up for lost money and keep your business afloat.
Many businesses are struggling to meet the new demands placed upon them by the changes in the economy and the world. Finding new revenue streams can act as a life raft when trying to keep your business afloat in these turbulent times.
Without further ado, here are eight creative ideas for finding new revenue streams for your business.
1. Refurbish existing revenue streams by finding and repairing any “leaky funnels.”
Use this opportunity to streamline and automate procedures to save money and improve the efficiency of your company.
“Leaky funnels” exist in almost every industry. Therefore, learn to be more efficient and productive than ever before. Do this by putting improvements in place, truly looking at the data you have, and then acting on it.
In addition, businesses should also consider upselling and reengaging existing clients. Upselling current clients is far more cost-effective than going out and looking for new ones.
Finally, look for solutions that allow you to distribute your service via the internet and other digital media. This is an excellent time to improve your business and services. Therefore, make the most of it.
2. Look to a related revenue stream. Apply your business model to a related industry.
Most people are looking for ways to survive. Therefore, this is an interesting time. This is a good time to go hunting for opportunities.
Your current business may depend on whether or not you can pivot into a related area.
In other words, don’t think too far outside the box. Just look at your present company strategy. See how it may be applied to another firm that might be in need right now.
You can sense opportunities when everyone else is panicking. You are not required to stay in your lane. (However, you want to stay mostly on the same route.)
3. Looking for additional revenue streams? Pay attention to the money.
Whatever is going on in the economy, some sectors are usually growing and even thriving. Therefore, examine where individuals spend their money.
After that, choose the most effective approach to offer this to your clients. This could include necessities as well as affordably priced indulgences.
Many small businesses, for example, closed during the crisis. However, they can still sell products online or deliver items locally.
Restaurants have been shifting their attention to deliveries. In addition, anyone selling physical goods can concentrate more on eCommerce.
You must choose the most effective means of reaching your target audience. This could include video, social media, email, or text messaging.
It’s not always easy to change your company model. However, it’s critical to do so when circumstances are rough.
4. Determine the underlying need you are addressing.
The “lipstick effect” is a business phenomenon that occurs during difficult times.
Consumers have discretionary cash even during recessions. In addition, they will substitute purchasing necessities for less expensive luxury options.
This trend may be traced back to 9/11. At that time, lipstick sales increased despite the fact that other luxury items declined. Similarly, during the Great Depression, cosmetics sales increased.
Therefore, in order to take advantage of this trend, ask yourself, “What underlying need is my business actually serving?” Also: “How can I offer customers an acceptable alternative?”
5. Put an emphasis on adding value.
If you need to find new revenue streams for your company, start thinking about all the ways you can add value to your current customers.
Can your team start offering a tangential service? Additionally, can you sell add-on products connected to that service? Are there things you can offer that will improve average buy size if demand for that service has decreased?
What are some strategies to generate goodwill in the meantime?
Suppose sales have temporarily fallen due to your consumers having less money to spend? Perhaps you can start creating and distributing valuable, useful content to your customers.
Your consumers will remember the added value you provided and will be more likely to purchase from you again if the opportunity arises.
6. Make content creation and collaborations a priority. Revenue streams will follow.
Do more live streams to promote your brand to your followers. Additionally, you can present your brand to an influencer’s followers to gain more attention.
Further, take advantage of the opportunity to interact with more individuals. In addition, ship products while you have the opportunity.
To increase your income, create a YouTube video and use it to market your stuff. Mini videos can also be used as Instagram or Facebook content.
The bottom line? Identify ways to become an eCommerce company and sell things online. Therefore, set up a separate schedule for your production crew.
7. Retooling and audience targeting increase potential revenue streams.
When things are tough, new money can be generated since adversity also brings opportunity.
Businesses can discover opportunities to retool their expertise or technology. In addition, they may even target consumers amid difficult times.
Manufacturing firms, for example, can retool their equipment to produce something new. Further, they may also discover that a new market or opportunity has opened up that they were previously unaware of.
You must be able to retool or retarget what you already have. If you do, you’ll discover that you’re in a better position than your competitors.
8. New Product Ideas = New Revenue Streams.
Business owners and managers should look carefully at their existing product lines. They can check to see how they may generate product or service expansions.
In this way, they can diversify revenue sources and enhance profitability.
Therefore, a service-based company, such as a marketing agency, can, for example, offer a more cheap, productized version of its services for smaller companies.
Finding new revenue streams means looking for new products or services to offer your customers.