Diversifying Your Business Income SourcesApr 14, 2022
After the pandemic started in 2020, most health and wellness businesses depending on a single revenue stream felt the effects big-time. While this was an unprecedented situation, it does show us something important: Putting all your eggs in one (income) basket just won’t ever help us feel secure.
No matter how incredible your services or products are, unexpected circumstances (hello COVID-19) can jeopardize your business’s ability to flourish.
To create a business that is sustainable for the long haul, you’ve got to have multiple streams of revenue coming in. Let’s walk through the importance of having more than one revenue source and four new ways you can diversify your business.
From Consistent to Sustainable
Many of us, myself included, go into business with one service in mind. Especially for brick and mortar businesses with a physical location, once we find a consistent and fruitful revenue stream doing what we love, we rely on this fixed income stream and can be reluctant to look for additional ones.
Having access to more than one source of income not only protects your business, but it encourages growth and deepens your relationships with your customers, too! While consistency is good, it can come at a price — something we’ve learned now more than ever.
What if the one income stream you have becomes compromised? It can leave you, your business, and your employees financially unstable. As we've seen during the pandemic, no single industry will always flourish. Unexpected circumstances can befall a business and industry at any time, no matter how good the product, service, or customer relationship!
This is why businesses should constantly be looking at the industry and market, considering how they can improve, who else they can target, and how they can pivot.
4 Ways to Diversify
Let’s walk through a few new ways you can diversify your income streams and not rely solely on face-to-face cash flow in the health and fitness industry. These are actually viable and can guarantee to make you money.
1. Take physical sales to the digital space
It’s time to embrace the digital space. With the myriad choices and upkeep of an online presence, some small business owners think that selling online is not worth the hassle, feeling like they can’t compete with Peloton or Apple, for example. Let’s reframe these new realities from “hassle” to “opportunity”! Think about what makes you different from other online subscription platforms.
The digital space can actually make it easier for you to reach new customers and tap into a larger market. You clients can stay engaged with you while they are traveling, or even make it easier for them to work with you remotely. Depending on the model you create, it’s easy to scale online. Offering services or products digitally can provide lower price point buy-ins for new customers, too. Jumping on the digital train is my number one recommendation for diversifying your income.
2. Add a subscription service
Piggybacking off the first, consider adding a subscription service to your offers. Subscriptions are things people pay a monthly fee for a certain amount of services or products. This model has become popular for product based businesses, but can be utilized for service based business too.
For example, this could be a membership model where clients have access to a digital platform for video on demand.This is great for people who shy away from higher ticket services or products as many times these subscription offers come at a lower price point. If you already have a loyal, devoted customer base, you already have proof of this concept for your business. Give your customers more of what they want by creating a subscription-based service for your services.
3. Offer online courses or workshops
Many businesses offer online courses or workshops based on their services or industry. You can package these as a subscription or recurring online class, or offer them as a one-time purchase for your customers.
Through customer feedback, you and your team can determine what your customers like about your products or services and how they use them to enhance their lives. You can create videos on multiple subjects, such as how to uniquely use your products or industry tips. Pop-up classes or workshops are something we have started to do at Pilates in the Grove on a quarterly basis. We offer random 75 minute classes with a theme as a way to boost revenue with an offer that’s only offered on a limited basis.
4. Engage in affiliate marketing
Consider getting involved in affiliate marketing. When we talk about affiliate marketing, we are referring to ways you can make money or earn a commission by selling someone else’s product. Or you could give someone a commission for selling your offers. For example, you could be an affiliate on Amazon by setting up your own page and recommending specific products you like. When someone goes to that page and purchases, you will receive a small commission.
A great way to increase your audience and forge new partnerships is also through affiliate marketing. When someone else promotes your products or offers, you are tapping into a brand new audience that you may never have touched without your affiliates. When one of your customers purchases this other product you’re promoting, your business gets a commission. The more products you sell, the more commissions you make. You’ve got to feel comfortable promoting the products you are affiliated with, of course!
Build Peace of Mind With Strong Business Foundations
These are four ways you can add income to your bottom line outside of your face-to-face services and create sustainability in your business. Having additional sources of income minimizes your risk of going out of business when the inevitable pops up, and will give you peace of mind regardless of how the market ebbs and flows. Pick one of these revenue streams to incorporate and give it a shot!
If you're interested in learning more about adding revenue streams, we coach many business owners through our Fit Biz Foundations program. This program is designed for the emerging female business owners ready to stop running a business that runs you into the ground and start owning a business that runs! I would love to help you create a business that is not only profitable, but sustainable no matter what life throws at us next.