UWR 016 When to create a new revenue stream
In today's episode, I am speaking about revenue streams and when to create a new one in your business. So let's dive in. I want to start by clarifying the difference between a revenue stream and an income stream, as I see it. An income stream is a source of revenue in your business. It might be different products or services that you offer. An income stream is a way that income reaches you personally, so one income stream for you would be your business, another might be dividends from shareholdings or investments, another might be rental property, and so on. In terms of revenue streams in business, there is a lot of chat online about having multiple streams of revenue in your business. And on one level that is a good thing. However, I see far too many people with multiple revenue streams, where those streams are not actually generating proper revenue, let alone profit.What I mean by that is that people are offering a large number of different options to their prospects. A course, a membership, VIP days, group programme, one-to-one services and so on. And their business is not at the right place to be offering all those options. You need to really understand and nail one offering before introducing another. I believe that you have to be generating an absolute minimum of 100K a year in one revenue stream, before you even think about introducing a second. Then the second needs to be at an absolute minimum of 100K before you introduce a third, and so on. Introducing another revenue stream before the 100K level means that you end up losing way too much focus on each revenue stream. If you are doing it before it gets to that minimum 100K, then it is likely that you are not completely crystal clear on your messaging yet, on your target market yet, and on the results you can achieve for your clients yet. All of those things make it much, much harder to scale a revenue stream, so you end up with that one stuck, and not being focused on. Then you make the decision that that one is not working for you, when in actual fact, had you concentrated on it until it reached at an absolute minimum of 100K, it might very well be the greatest revenue stream in your business. Now I say 100K, but actually in reality I'd like it to be much closer to 250K that you have for one stream before you introduce another, but I know that a lot of people won't want to stick it out that much. 100K is the absolute minimum though. Please don't go below that. Because the thing is that focus and consistency are two things that are massively important when scaling a business, and with having multiple underperforming revenue streams you have neither of those things. I know that you know that, but it often helps to be reminded.So look at your business. Pick out those revenue streams that are not at the 100K level yet. Choose the next one that you're going to work on to get to that 100K and drop the others for now. Focus on the revenue stream until you get that to an absolute minimum of 100K a year revenue stream, at which point you can clean up the systems around it, clean up the marketing and the message and the sales process, and then you can start focusing on building that next revenue stream. You can go back to that list and pick out one of those ones that you paused and parked earlier.So I hope that this episode has been useful in understanding revenue streams, and what you need to think about when you have multiple revenue streams in your business. I also want to invite you to step into the Uncover Wealth Community. This is my private community on Facebook. You can search Uncover Wealth Community within Facebook, or go to annetteandco.co.uk/fbgroup. I do a live teach in there every single Tuesday for Training Tuesday, and I would love to have you there. Thank you so much for listening. Until next time, let's find the clarity in your numbers, increase your wealth, and get more money in your pocket.