How to identify and create new revenue streams

Market fluctuations, cash flow issues, debt and investment losses are real-life concerns for businesses at all stages.

We're currently deep into a cost-of-living crisis, which also brings uncertainty. Most of these financial risks are beyond our control.

As a marketing communications specialist who advises businesses, my role is to troubleshoot ongoing issues and spot new opportunities for growth.

In essence: this means looking at current marketing and communication tasks that can be turned into pounds and repeat business from customers.

In this blog, I explore some strategies you can put in place to identify untapped revenue potential and transform innovative ideas into profitable avenues.

Let's start with two business types and a few examples.

Ideas of opportunities for growth

Two ideas for service-based businesses

For example – accountants, fitness trainers, florists

Show and tell

Take the most common questions your customers ask and create paid online training sessions with demonstrations. Think of sessions that can help resolve queries, so you become useful to your customers.

Make it personal

Think of bespoke, added-value services you can tailor to your customer. For example, if you're an accountant and you've just completed a Self Assessment tax return for a business, offer a follow up Q&A session to help with their business needs.

This could be a really useful option whenever the government introduces new tax rules. Let your customer know all the ways you can help them understand something that, to a lot of people, is really complicated.

Two ideas for product-based businesses

For example, bakeries, fashion shops, online jewellery shops

Create a guide

A recipe book, a style guide or a summary that gives the reader and customer added value. If you run a bakery, for example, can you share some cake decoration tips that customers can try at home? Think about what you'd charge for something like this.

Be our guest

Invite customers to attend exclusive events. Ask your most active and loyal customers to join you for an event where you reveal new products or seek feedback on new items.

These customers are your biggest fans and advocates, so reward them for their ongoing loyalty. You could charge a ticket price to make the event lucrative!

How to turn the ideas into cash

1. Understand your current business landscape

Before you look to make money, ask yourself some vital questions.

• What are my core resources? Understand which products or services are your bread and butter and analyse their pricing, profit margins and performance in the market. Which are doing well and which are bringing in no money?

• Where do my customers derive the most value? Evaluate customer feedback, conduct surveys and use analytics to pinpoint which aspects of your business resonate most with your audience.

  Their insights could spark ideas for add-on services or completely new product lines. Trends come and go so ask customers what they need from you at the moment.

• What operational strengths can I make the most of? Consider if you can repurpose your existing capabilities – whether it's technology, expertise or customer relationships –for new markets.

2. Explore new market opportunities

Take the time to scan for emerging trends and adjacent markets where you can add value.

• Industry trends and disruptions: Stay updated on industry news, advances in technology and regulatory changes that might open up a gap for innovative solutions. What pain points can you serve for your ideal customer?

• Competitive analysis: Audit your competitors. Identify what they're doing well – and, more importantly, where they're falling short.

  Social media is a good place to start this research. You'll see where others are succeeding and where you can seize the day for new opportunities.

• Partnerships and collaborations: Consider opportunities to partner with complementary businesses that match your business's values and mission.

  For example, a graphic design company might collaborate with a digital marketing agency to offer bundled AI creative services that neither could provide alone.

3. Test your new revenue ideas

Once you've identified potential opportunities, it's time to generate ideas and test what works:

• Brainstorming sessions: Get your team together and brainstorm potential revenue streams. Encourage out-of-the-box thinking – ideas may range from subscription-based services or online on-demand courses.

• Market testing: Validate your ideas with small-scale pilots or focus groups. This might be as simple as launching a beta version of a digital service or offering a limited-time bundle.

  Feedback will guide your process and also help you to reduce risk. This will help you to know where to focus your time and resources before a full-scale rollout.

• Use digital tools: Tools like customer surveys, A/B testing on landing pages and data analytics can help you measure interest and engagement. This information is crucial for making informed decisions about which ideas to scale.

4. Create a roadmap to launch your new revenue stream

Turning an idea into a revenue generator requires a strategic plan with SMART objectives to maintain momentum. Here's what to do:

• Define clear objectives: Set measurable goals for what the new revenue stream should achieve. Think in terms of revenue targets, new customers and where you'll find them. Also consider how to retain customers in the form of repeat business or referrals.

• Develop a launch strategy: Outline a detailed action plan that identifies your target audience and lays out marketing tactics and key performance indicators (KPIs).

  Using digital marketing channels and social media, in particular, can amplify your message. What other platforms and channels will you use to promote your new services?

• Invest in it: Whether it's training for your team, new technology or marketing budgets, make sure you're equipped with the right resources to support your new plans. Be patient, as it'll take time to develop and scale your plans before you see success!

• Monitor and iterate: Use feedback loops, take time to reflect and hold regular performance reviews to refine your approach.

  Not every idea will work out immediately, so be prepared to pivot based on real-world results. There's no point repeating the same actions if they aren't working so don't be afraid to make changes!

Final thoughts

Now's the time to look beyond the familiar and explore new opportunities. What exciting new revenue streams can you create for your product or service business?

Start with a thorough analysis, listen to your customers and let innovation light your path to growth.

Let's chat some more about this. Get in touch via my Enterprise Nation profile if you have questions – I look forward to talking to you.

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