What is One of the Main Reasons for Having Multiple Income Streams?
One of the best ways to be successful in business is to create multiple streams of income for your business. Whether it is additional profit centers in other related fields or a way to leverage your current business, either one of those is fine.
What is great about multiple income streams is that when one of your businesses is slow, the other ones can pick up and be there to make a profit. Seasonal profit centers are particularly nice, because each one has a busy season.
What Does It Mean to Leverage a Business?
Well, let me ask you this. What does it mean to leverage a building? Well, when you leverage a building, you are leveling it with the ground or putting it on equal footing.
To leverage a business, means that you are going to take your time and find ways to put it “on equal footing” with your income, staff, other investments, and ideas. A good way to understand this is that there are seven ways to leverage a business.
You will want to find ways that will allow you to earn passive income, so that you could take a week’s vacation or a sick day once in a while and not worry about recovering the money lost.
In summary, they are:
- using OPM (Other People’s Money)
- using OPT (Other People’s Time)
- using OPW (Other People’s Work)
- using OPE (Other People’s Experiences)
- using OPI (Other People’s Ideas)
- using Scalable Production & Distribution
- using Scalable Customer Base
While you certainly can use your own materials and money, you can expand your business or profit centers further by getting help from others. This can be paid or unpaid.
What Did Howard Hughes Have to Say About Multiple Income Streams?
Like the great Howard Hughes said something along the lines of figure out a way to make money off a few workers and you are making money. And, no! Hear me out. I am not talking about sweat shops here or harsh labor camps either.
In other words, figure out a way to get several people excited about what you are offering and make them affiliates or sales people in your business. Earn bonuses, commissions, royalties, etc.
Have you read the article I wrote entitled, Why You Must Have Multiple Streams of Income?
For example, you could be a caterer by day and have cookbooks or eBooks also making money while monetizing you blog and teaching a few cooking classes at the local kitchen supply store. You always want to leverage a business instead of just trying to just make money doing what you are in business to do. You want to think of and beyond and in large numbers, so that you could also create not just money but wealth and a sustainable livelihood.
Personally, I have leveraged my business over the years by adding a monetized blog, eBooks, guest posts, and speaking—you can too. If not, then make an appointment with me, and I will show you how.