There are lots of reasons why you’d want to develop more revenue streams for your small business. Diversification and because your customers are asking for more services and products is just the beginning. But you don’t want to do everything, so choose your revenue streams is super important.
Things you need to consider in order more revenue streams: 1) Your core competencies 2) Adjacencies to those competencies 3) Your existing customers 4) New customers 5) Standard types of alternative revenue streams
How to decide what your core competency is? This is your bread & butter! Your competitive advantage, what you are known for! This is something that you should be better than everyone at. And it is probably the reason why you went into business.
Now you have to figure out what a logical adjacency might be. These are new revenue streams that are strategically aligned to your core competency and that steer what you offer in a defined direction. Some different ways to pivot when you do adjacencies is if they are a new product or service for your existing customers or if you are doing the same product or service for a new target market. Both are a natural step in growing your revenue streams strategically.
Strategies that are for developing revenue streams that focus on the existing customer include increasing the average sale from a customer, increasing the frequency that people use your business, offering something new that they also need, or developing more effective retention strategies. Keeping a customer is worth even more than finding a new one!
There are lots of different ideas of revenue streams to consider. New products, services, intellectual property, events, memberships, intermediaries, programs, residual income, the sharing economy, government contracts and grants, or even crowdfunding. You can do one or more of them, blend them, have fun! Watch the video to hear more about all of this.
Have you ever wondered what the difference is between a credit union and a bank?
Are you curious about why you might choose one over the other?
Keith Taylor of DUCA Financial Services can tell you – and he does. You’ll learn about:
What DUCA is and how a credit union is different from a bank
The different programs that DUCA can offer as a credit union including the Profit-Sharing Program and Profits with Purpose. There is also a Community Hero Mortgage with a profit donation program with in.
What B-Corp certification is and why DUCA works to maintain it including ensuring that they are paying all employees a living wage (including benefits) and were the first to do so.
What DUCA offers businesses from no or low-fee business banking and all of the other account options.
Plus there is business lending with lines of credit, loans and mortgages just like you would expect from a bank. But the added advantage for small business owners is the relationship that they have including having a designated Small Business Advisor for all business members.
The DUCA Impact Lab – what if banking’s primary focus was on solving problems and creating opportunities for everyone and not on simply making a profit?
If you fail to plan, you plan to fail – that’s why writing a solid business plan is the best first step you can take toward making your dream of owning a successful small business a reality.
In this recording of our “Writing a Business Plan to Get What You Want!” webinar you’ll learn about a Business Plan and its sections, including:
The importance of deciding who the plan is for
The Business Overview – Talking about The Opportunity and why what you offer is The Solution; defining the target market; describing the unique aspects of a business that give it a competitive advantage and how the business owner intends to keep that advantage
Vision – Where the owner sees their company in 3 – 5 years, the ultimate goal for the business, and a description of the exit strategy
What to include in the Marketing Research section – Industry trends, consumer trends, wider general trends (government, economic, technology) that may impact a product; a business’ main competitors and their potential impact.
Sales Projections – How to calculate reasonable sales projections to include in a business plan
Management Team – Why is the owner the best person to launch this business, given their support team and contacts?
Marketing and Sales Strategy – The plan to get the word out about products given factors like prices, location, size of area to be covered, marketing budget, and projected sales
Operations – Discussion of operational issues like processes and delivery; how processes will be tracked to ensure completion; who handles human resources issues like hiring, scheduling, etc., and how they will be handled.
Action Steps – The importance of showing the company’s goals for today, as well as its Short Term and Long Term goals.
Financial Projections – Demonstration that the business is financially viable and sustainable over the long-term.
Executive Summary – Written last, but first thing reader sees. Must entice reader to keep reading.
Increasing our small business revenue generation is something that most entrepreneurs are concerned with. In this video we learn why all entrepreneurs need to make it the top priority and we walk through the 4 main things that we need to focus on to help our revenue grow.
1. Number of leads
2. Improve conversion rates
3. Increase the price of the average sale
4. Increase the number of sales per period
Plus we walk through all of the tools we have at our fingertips to help improve these 4 areas. Watch it now!
Business valuation is critical for all small business owners as there is a high probability that you will be needing to evaluate how much your business is worth due to needing a loan, going through a divorce, or selling your business either voluntarily or involuntarily.
When it comes down to it, the value of your business is the price that someone is actually willing to pay you for it. But if you are trying to put a dollar value on your business without this step or before this step, there are some things to consider;
1. Net tangible assets
2. Identifiable intangibles
3. Goodwill (transitioned and non transitioned)
4. Redundant assets
If you are selling your business, there are some great ways to increase the value of your small business. And there are some specific value drivers to be aware of.
If you are buying a business, there are some specific details you should be looking for and specific circumstances where you may buy a small business for a lesser amount.
Financial management and understanding numbers is a daunting topic for many entrepreneurs. However, this is a vital skill when speaking with investors and bankers that will help your business grow and/or survive.
This video will give an outline of what numbers are important and some basic ratios to test on your business.
Some concepts that are very important are;
1. Reviewing your past performance and changing trends can spot problems early.
2. If you don’t have past performance you can also track against industry averages. This can be done based on the industry that you are in and the size of your business.
3. Financial ratios help you determine if there are problems in specific areas in your business.
– the quick ratio and acid test
– accounts payable and receivables turnover
– debt-equity ratios and interest payable
4. Creating a 1-page business performance dashboard helps you see all of the financial metrics in one spot.
Your small business exit strategy is one of the most important parts of running your business.
The reality is, if you want money quickly it is better to get a job than start a small business. Starting a small business helps you in the long run financially as you are building equity and value in your business year over year.
But the only way to get this equity and value out of the business is having a solid exit strategy that allows you to realize this.
There are 6 major exit strategies to consider;
1. Getting the most out your business now.
2. Liquidating your business which means selling all of your assets.
3. Selling your business to someone you know.
4. Being acquired by another business for a strategic reason.
5. Issuing shares publically and getting out of the business.
6. Create a family empire with a solid succession plan.
One of these should be selected and planned for. The video walks through these strategies, gives examples of how it has worked, and highlights the top tip for each exit strategy that you should be focusing on.