I’m a contributor to Wedding Business Magazine. The August issue is all about revenue streams. Before you jump in too quickly, there are some things you should consider when expanding your services.
Here’s a snippet of my August article:
After a few years in business, you may be asking yourself: should I diversify my revenue streams? Should I expand into other areas? Should I offer new products or services?
The answer is… MAYBE!
In theory, everyone should diversify their income. I want to see wedding professionals earning more, and building more profitable businesses. But – diversification isn’t for everyone. Or, not everyone is ready to diversify.
Three signs that a business is READY to diversify:
1. The primary business is profitable and operates effectively.
You are going to have a LOT of success with a second stream of income if your first set of services is already profitable and running smoothly. When you introduce a secondary source of income, it will require that you treat it like its own independent project. While you don’t have to set up a separate company for this new offering, you’ll want to treat it as its own baby entirely. This means that you’ll need to pour as much time and energy into the new venture as you did your original venture.
If your primary services (or products) are struggling, or still gaining momentum, you’ll find yourself stretched thin with your efforts. While trying to launch two separate sets of services, you dilute your time and energy. You’ll spend 50% of your time on each. And, it’s really hard to build greatness if you’re only able to put 50% into something. Greatness requires 100% effort.
Make sure your primary source of income is thriving, and go for it with a secondary revenue stream!