Your startup’s principle service alone is often not enough to sustain your still young business. Many ventures tend to scramble to make ends meet when they realize this, and usually end up collapsing due to running out of usable funds before they can secure stable and spendable lines of revenue.
Keeping an open mind to new options that your startup can turn to for alternative revenue streams is vital to staying afloat until demand and loyalty from new clients becomes enough to sustain your business.
Below are 4 options to produce new and alternative revenue streams for your startup.
Capitalize On Your Knowledge
For those who know the ins-and-outs of the business landscape your startup currently occupies, your knowledge can be a lot more valuable than you may have thought. Speaking at engagements, writing an E-book, or even offering private consulting and coaching for other businesses can be a very lucrative source for extra income.
Positioning yourself as a publicly-known expert in your field is a great way to push awareness of your own business that you represent, which in turn will bring in more clients for your startup.
Sell Your By-Products
Be on the lookout for already existing services within your business that can be capitalized on. It is a great way to jump start your funds when in a tight jam, as well as add an extra stream to feed into your incoming revenue.
For example, an educated and experienced knowledge of an area of business can be sold from your startup as a coaching and consulting opportunity. Although this service may differ from what your principal service may be, the fact that you were able to produce this product without sacrificing any specific production costs is what makes it so lucrative.
Sell Ad Space
Gary Vaynerchuk once wrote that “every company is a media company.” This is alluding to the fact that even small startups often have blogs or publish materials related to their industry in addition to the business or product they specialize in. It’s a common strategy known as Content as a Service that helps brands to improve many of their metrics: lifetime value, churn rate, quality perceptions, and overall satisfaction with the brand.
Your own website can be turned into a valuable tool that can do than just provide details for your potential clients. Consider selling ad space on your web pages from other businesses that you work with. A partnership for swapped ad space can be a boon to both companies.
There will almost always be a buyer for your ad space, but be aware that competition may try to promote their own businesses on your website.
Develop an App
Creating your own application for your business is one of the most effective ways to not only promote your business, but also to bring in more streams of revenue. Designing an app for iPhone, Windows Phone, Android, or Kindle can be a difficult and expensive endeavor, but if successful in execution can do wonders for your business.
Charging a small download fee along with in-App purchases for more features and uses works in small doses to bring in cash flow, but in the long run is an effective way to keep clients updated on your business and its available services. Working in tandem with your business’s social media accounts can also boost app sales.
Finding alternative directions from which to pull in extra income for your startup is essential to making your venture into a successful business, and does not have to be a total pivot in directions for your business. Working with what you already have at your disposal can often times provide your startup with more than enough to sustain itself in times of hardship.