usiness owners need to be constantly looking ahead in order to guarantee future success. This partially involves creating multiple sources of revenue to ensure solvency if the company happens to fall upon hard times. Let us look at five proven methods which can be directly applied to a current business model.
This is the most obvious observation and yet, it still needs to be mentioned. A perfect example can be seen in the success of Tesla founder Elon Musk. While primarily known for his line of innovative vehicles, many are unaware that Mr. Musk is also the co-founder of PayPal and X.com. It pays to think outside of the box.
2. Related Products and Services
Let us assume that a bakery currently specialises in doughnuts, cookies and pies. However, business has grown sluggish over the past two financial quarters. Why not produce similar products within this field such as pretzels and cupcakes? The main point here is that businesses which are able to promote different products will generally enjoy additional sources of revenue.
3. Commodity Trading
Many business owners have ventured into the world of investing due to the possibility of amassing substantial returns within decidedly short period of time. However, risk is always present. This is one of the main reasons why commodity trading can be lucrative. These assets are able to rise above much of the volatility associated with the open markets. In reference to precious metals such as silver and gold, the long-term chances for profit are likewise very real.
4. Small-Cap Ventures
This next suggestion should be taken with a bit of caution. The main benefit of small-cap companies or those which have not yet come to market is that the room for growth is exponential. In fact, it has been observed that these assets showed an annual return of 11.9 per cent between 1926 and 2012. The main issues are due diligence and reporting. As these companies are not necessarily obliged to disclose as much of their financial information when compared to a listed firm, investors need to perform a fair amount of research to peer through the so-called smoke and mirrors. Technology start-ups and green energy firms are two popular choices, as these tend to show promising results into the future. Still, always perform research before committing to such concepts.
5. All About the Dividends
A final method to add an additional revenue stream is to hold blue-chip companies associated with handsome quarterly dividends. Facebook, Microsoft and Apple are three prime examples. Many traders become involved with such firms for their dividends alone and over time, these fiscal windfalls will undoubtedly add up. However, keep in mind that these tend to be long-term ventures and they should be treated as such.
These are five proven methods to generate a healthy and predictable revenue stream. As such funds can then be injected directly back into the core operations of a business, they can be excellent ways to enjoy a greater amount of stability in the event that economic times become challenging.