When business owners develop revenue sidelines, they are creating revenue safety nets. Though they may not know it, they are also creating an inexpensive means of expanding their businesses. Having alternate revenue streams can also produce unexpected sales treats, like icing on a revenue cake. In fact, occasionally the sidelines become mainlines!
“Okay,” you say, “In theory this makes sense. But how do I create sidelines?” Here’s how.
* Find new uses for your existing products. Take the case of.
Heavenly Ham, a large Atlanta-based specialty ham store franchise. At the holidays and other special occasions, consumers flocked to buy its Ham. However, the revenue from these infrequent occasions did not compensate for the slow ham sales the rest of the year.
Heavenly Ham knew it would have to close some of its 186 franchises if it did not take action quickly. It did. The company investigated alternative uses for its core product–and found them. Heavenly Ham started a catering and boxed lunch program which centered on ham.
Well, the boxed lunch sideline has been very successful. Marketing director Robin Bayless estimates this sideline accounts for up to 45 percent of each store’s revenues! Quite a sideline success story, isn’t it?
* Venture into a related field. Take the case of.
Moto Photo, a Dayton franchise of 400 photo processing shops. To create another revenue stream, its officials added a small portrait studio to its U.S. locations. The move was not too risky, since the company already had a head start in photography. What were the results? Sid Davidowtz, company director and franchisee of a Paramus store, stated, “The portrait studios are a nice complement to our film processing business.” Very nice indeed–the “sideline” raised each store’s revenue by an average of 30 to 40 percent!
* Sell a product or service that your company developed for its own use. Take the case of.
Hyclone, a bio-tech company located in Logan, Utah. To resolve a bad leakage problem, Hyclone decided to develop its own containers to hold its product: Fetal bovine serum used for cell testing. Since Hyclone’s special containers worked so well–and to bring in another source of revenue–Hyclone started to market its containers to other companies. It turned out to be a very wise decision indeed.
* Convert your knowledge into a sideline. Take the case of.
* Technology & Business Integrators of Woodcliff, NJ, which tells clients how to use technology to grow their revenue. Now TBI is expanding its own revenue by turning its service into a product, according to Gary Venner, director of consulting. The company had already cultivated “best practices” at client companies. Well, they converted these “best practices” into a white paper that other companies buy. It worked so well, TBI is now finishing developing a sideline off the sideline: An online tutorial on best practices. You also can find a product your company developed in-house, such as a software program, and market it to external customers. It is relatively risk free, too. After all, you’ve already tested the product yourself. If the product saved you money or made you more efficient, then it will probably do the same for others-so they will be quite willing to pay for it.
James Wilson, The Best Practice Detective, reveals the proven-successful, profit-certain, winning marketing secrets and best practices of America’s most innovative companies. Creatively imitate the strategies of other successful entrepreneurs! Get the free ezine, Best Business Tactics at: http://www.Bestbusinesstactics.com
