HOW TO GROW YOUR BUSINESS THROUGH DIVERSIFIED REVENUE SOURCES
Only the strongest small and mediums businesses have survived the pandemic and we can all now acknowledge that it’s beneficial for businesses to diversify their revenue sources to help them through the tougher times.
If your business strategy is based on a singular income stream, you could be putting your business at risk and missing out on the opportunities to diversify – giving you a broader revenue base for greater stability whenever things don’t go to plan.
A single, lucrative client or successful product is usually all your business needs when things are going well, but this approach can leave you and your business vulnerable. Clients can leave, competitors can improve on similar product or service offerings, and market conditions can change at any time. So how do you invest your time, planning, and resources into multiple sources of income to help safeguard your business’s future?
- Invest in innovation
Take a step back and look at what you currently do. Ask yourself if this can be done better. There might be ways to lower costs, improve quality or add a feature to what you are providing. Always remember that a better product is much easier to sell and makes it much harder for competitors to beat.
With new products or services, your business unlocks a completely new world of customers and segments to compete in.
Spend time investigating any gaps in the market that might be lucrative or something your customers keep searching for that you could provide. Your knowledge of their needs can help you find untapped avenues for expansion.
- Invest in new sales
Being constantly on the lookout for new sales to build a solid portfolio of clients and customers will safeguard your business against possible future financial challenges.
Make some time in your day to capture and chase leads. Not every call, email, or meeting will convert into a new order, but the more make, the more total sales your business will ultimately generate. Even better, if your resources allow for it, appoint someone in your team with the role to focus on securing new business.
- Invest in finding the right financing
Apart from diversification in sales, clients, and products, it is also important to look at your financial arrangements and diversify your funding sources.
Sources of funding have emerged to include business re-financing, purchase order funding, stock finance, and much more. Many SMEs fail to shop around for finance and continue to go directly to their bank to apply for an overdraft or loan, often at unattractive rates if they even secure funding at all.
It is worthwhile to break down your funding requirements into short-, medium- and long-term needs. Where there is a need for short-term cash, the easiest solution may be is an overdraft facility, but short-term loans can also be made available, often in a matter of days.
Over longer terms, consider asset financing to provide you with the tools or equipment you need, and avoid the effects of slow-paying customers with measures such as expansion financing, purchase order funding, and product or inventory finance to make cash flow easier to manage.
The most important thing is to get specialist financial and compliance assistance to ensure that you have the right type of funding you need.
CorpFin specializes in business funding and would love to help your business get the financing it needs.