Please note that this article is intended for educational purposes only and should not be deemed to be or used as legal, employment, or health & safety advice. For guidance or advice specific to your business, consult with a qualified professional.
Businesses are constantly having to adapt to new situations, technology trends, and even ways of working. In fact, the COVID-19 pandemic forced 45% of small businesses in the UK to pivot or change their business model.
Chefs, personal trainers, hairdressers and more, had to come up with ways to diversify their offering to keep their businesses afloat, from expanding existing product lines to adopting new technology. And the effects of this are still being felt today.
So, whether you’re looking to offset your losses, increase your profits, or find new ways to expand your small business, you’re in the right place. Read on to find out how you can introduce new revenue streams to give your business that extra boost.
Listen to your customers
Your customers are one of your most valuable assets for information, so make sure you listen to what they have to say and look out for opportunities to support their needs.
Are your customers loving your baked goods and asking to learn how to make their own sourdough at home? Consider launching an e-course, a series of cooking classes, or even start a home delivery service.
Similarly, spa and salon owners might find that their clients are looking for more interesting gift experiences. You could introduce gift cards for salon services or build some new package deals tailored to different events and occasions throughout the year.
You could also integrate a customer feedback system like Square Feedback to collect your customer’s thoughts and opinions. With this tool, you can use their responses to guide your decision-making and future business processes.
Create additional product offerings
One of the best ways to introduce a new revenue stream is to create an additional product that aligns with your brand. Start brainstorming ideas and narrowing down your ideal audience for your new product.
Ideally, you want to create something that appeals to your existing customers, but also offers an opportunity to expand your customer base. So, do some research and speak to your target markets to ensure your concepts align with their needs.
Here are some ideas to help you get started:
If you own a restaurant, you could start selling your own sauces or condiments. Set up a display inside your restaurant, have your sauces ready-to-use on the table, and build an online store for customers to purchase their own at home.
Photographers might sell lightroom pre-sets or an eBook on how to take great shots for Instagram.
An accountant could offer downloadable budget planners on their website, which clients can purchase to keep their finances on track.
Content comes in a variety of forms, from long written blog posts to short videos for social media. Increasing and diversifying the type of content you produce can help boost your brand awareness, as well as introduce a new stream of income.
Start livestreaming your creative process on YouTube or make short TikTok videos to reach a new audience. Podcasts are a great option for less creative industries, as you can find your niche, build a listening audience, and offer advice or guidance.
You can also collaborate with other brands and businesses on your content or incorporate some sponsored content as an alternative source of revenue. Get started and build a calendar to plan out your activity on different channels so you can create a cohesive content experience.
Rent out your space
If you own a physical location, you could use it as another opportunity to boost your income. Take a look at your current opening days and times, then consider whether you could rent out your space on the days you’re not open. For example, if you’re only open Thursday to Sunday, why not rent out your space for the remaining days of the week?
You could advertise the space for a wide range of jobs, such as photoshoots, podcast recordings, work hubs, meeting rooms, or even event spaces. Just make sure you set some ground rules with other businesses, to ensure the space is always in top condition when you return.
Opening up your space to other brands can also help you build industry relationships, which, in turn, could lead to future partnerships or collaborations.
Look for excess spend
Analysing your current business processes is a great way to see where you might be wasting time or money, and ultimately reducing your revenue. Go back to your business plan and check where in your operations and budget you might be able to make some savings.
Below are some questions to consider when looking over your business model:
How much time are you spending doing your own accounting or marketing?
Is it worth bringing in a contractor to free up your time?
Could you benefit from better inventory management?
Do you need to rework your cash flow?
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With these five ideas under your belt, you are ready to start building other income streams for your business. Not only will this help maximise your earning potential, but it will also open up new opportunities and avenues for your brand to explore.
Looking for more ways to streamline your processes? Square offers fast and easy-to-use payment options to make life easier for you and your customers. Check out our bespoke POS system and all-in-one Square Register to manage your sales, payments, inventory, and more.