If youre like most entrepreneurs, you arent satisfied with letting your business sit in idle mode for long. You want it to continue to grow and reach the level of success that youve been dreaming about. Well heres you chance to light a fire under your companys success. It seems that everyone is talking about how to generate multiple streams of income, and theyre talking about it for a reasonit works. While a business may be able to run with a few products and services for awhile, it is the introduction of new products and services that expands the bottom line. To get a better idea of how multiple income streams can propel a business to new heights, take a look at some of the biggest success stories. Yahoo! got its start in 1994 in a Stanford University campus trailer as Jerry and Davids Guide to the World Wide Web. Founders David Filo and Jerry Yang, PhD, began keeping track of websites they liked. Soon hundreds of visitors were logging on and the duo realized they had a business in the making. After incorporating in 1995 and taking the company public in 1996, Yahoo! has grown to reach over 345 million individuals. The long list of services offered include web hosting, e-mail, personals ads, yellow pages, maps, instant messenger, a shopping network, and dozens of other services. Many of Yahoos services are offered for free and revenues are generated from upgrades to premium services, advertising, alliances with other businesses, and the introduction of new services. Starbucks is a favorite destination for coffee lovers, and the passion for a good cup of java was the foundation for this hot company that began in 1971 as a small shop in Seattles Pike Place Market. Once established, Starbucks began adding new products, like the signature Frappucino, to reel in customers. Patrons can also purchase fresh beans, mugs, candy, coffee brewing equipment, gift cards, and music CDs, or indulge in the one of the tasty ice cream flavors from the new retail product line. There are currently 4593 company-owned locations and an additional 2158 licensed Starbucks locations, proving that thoughtfully planned revenue streams can catapult a company into phenomenal success. eBay began in 1995 as a forum for swapping Pez dispensers and has morphed into an on-line giant reaching more than 135 million users. To achieve its record growth, the company expanded its product categories to include everything from office supplies, sports memorabilia, and music to real estate, automobiles, and concert tickets. More than 1.4 billion items were listed for sale in 2004. Acquisitions of PayPal, an online payment processing service, eLance, a directory of freelance service providers, and several other companies have also helped eBay grow in record proportions. Ebay has sites in more than twenty countries, serves up a popular storefront program, hosts user conferences, and continues to grow the customer base through an affiliates program. Home Depot crafted its niche by offering customers a large variety of products when the doors opened in 1978. Now over 1800 stores strong and with a selection of over 40,000 building materials and lawn and garden products, the home improvement giant has expanded its offerings to include installation services, how-to workshops, home delivery, tool rental, truck rental, and a popular series of books. A Call to Action So how can a small operation achieve even a fraction of the success experienced by the big companies? By emulating their business models. If sales are flat or simply not growing fast enough at your company, consider how you can build on the foundation. Ask yourself these questions: *What products or services would my existing customer base like to see? *What products or services could lure in new clients? *What products or services are being offered by my competitors? *How can I implement my new offerings? *How will the new offerings affect my bottom line? Here are ten ideas to consider: 1. Offer consulting services in your area of expertise. 2. Add a new line of products. 3. Form an alliance with another business. 4. Sell advertising on your website, in your e-zine or at your place of business. 5. Launch a second business that is complimentary to your primary business. 6. Offer new services and outsource them to contractors. 7. Create a subscription-based offering such as a newsletter or mentor program. 8. Create your own products for resale. 9. Train others to run a business likes yours. 10. Publish books, e-books or other information products. Not only can the introduction of a new product or service increase your bottom line, but it can boost exposure for your business. Since most people need to be exposed to a product or service at least eight times before they pull out their wallets and buy, your business needs to be seen everywhere. New products and services mean new methods of advertising and the potential to expand your customer base. Implementing a new revenue strategy is not the only way to grow a business. You need careful planning, capital, and a good marketing plan. Even the biggest companies started out small so with a little ingenuity and some careful planning, your business could be the next success story. |
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