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.
Having a Non Disclosure Agreement (NDA) is a smart move for any small business owner. You might need to share confidential information that you don’t want shared with many different business relationships that you have in place.
– Your employees might have access to company secrets, intellectual property, future strategic plans, customer pricing, and many other pieces of information that you don’t wish to have shared.
– Your business partners or investors where you are sharing financial information and your future plans.
– Your banker where you are sharing financial information including the debt and equity information.
– Your customers or suppliers who you are sharing information with on pricing, marketing tactics, and other information that allows you to be a good strategic partner with them.
– Anyone else that you share confidential information with that you don’t want to become public information.
If you want to have an NDA, you can learn more about them and download a template here: https://clausehound.com/
Thanks to Cobalt Lawyers (http://cobaltcounsel.com/) and ClauseHound (https://clausehound.com/). The information provided may not be relevant to your jurisdiction, this information is not a substitute for obtaining legal counsel, nor does it create a lawyer-client relationship with you, the reader.
Small business owners need to know how to protect themselves. A contract is not designed for when the two parties agree, but for any potential time when they don’t agree. That is the key!
In this 25 minute video we focus on sales and vendor contracts, but contract best practices in general. What are some of the clauses and what should be paid attention to? The specific clauses that we walk through are;
1. Parties of a contract
2. Description of the product or scope of services
3. Fees and charges
4. Tax responsibility
5. Rejection or acceptance of the product
6. Warranty period and exclusions
7. Payment terms, due date, interest rates
8. Customer promises
9. Vendor promises
10. Limitation of liability
12. Dispute resolution mechanism
Contact the Expert
If you have more questions and need more specifics, please contact Rajah Lehal directly!