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You’ve launched your first product, and it turns out your customers are all for it: great! Now you can sit back and watch as your company succeeds into infinity, right?
Definitely not right. When one problem is solved, another one is revealed. Companies that don’t constantly develop new revenue streams quickly flounder into failure. In fact, 18.4% of private US businesses fail during the first year.
Does this make you worried? It shouldn’t, especially with these four ways to help your small business generate new profit.
1. Create a New Business Strategy
One of the quickest ways to discover new revenue streams for your business is to refine your current business model. You can do this using two methods:
- Evaluating aspects of your business
- Leveraging your existing customers
Any business model is made up of several factors that help your product or service effectively reach your customers. Take a moment and analyze each of these factors; discussing how you can elevate one creates a new business strategy.
You can also implement strategies to understand your customers better. While a single product or service might solve one problem, you can use deeper customer insights to shift your business model in a direction that solves another.
2. Introduce New Technology
What many of your competitors struggle with and what you no longer will is outdated technology. Many people see emerging tech as a risk or an investment that takes more time in implementation than its worth. However, We’ve advanced so much that these updates can offer exponential business growth and opportunity.
Some examples of new industry technology include cloud computing, machine learning, the Internet of Things, and more. Take some time to ideate how these techs can empower your small business.
3. Modify Your Supply Chain
Alongside updated technology, the way we pass along our goods and services is rapidly changing; customers are expecting their purchases to arrive as quickly as possible. For a competitive advantage as well as an added benefit to your company, consider updating your supply chain.
For example, offering your customers an expedited courier service allows them to receive their items the same day they purchase them, 24/7 (get more details here). If this solves a problem that your customer may otherwise have with your product (eg. emergency items), your updated supply chain offers added benefit.
4. Enter a New Market
When markets become oversaturated, it can prove challenging to maneuver for new revenue streams. This is the perfect time to consider entering a new market. While this requires additional market research and a new product that fits, a conjoining market presents ample opportunity for you to offer your industry expertise.
More Advice on Updating Your Revenue Streams
The above advice should help you brainstorm new revenue streams for your small business. Whichever stage you’re at in growing your business, there are always new positions for you to earn money.
For more advice on revenue streams and other business practices, check out our Business section.