During tough or uncertain economic times, it may become necessary to explore other avenues to keep your business ticking over. Having multiple sources of income can be the difference between your business surviving and becoming yesterday’s news. There are so many positive reasons for supplementing your main source of income with a secondary one and in this blog, we explore ways that you can do this.
What makes a great secondary income stream?
The best secondary income sources tend to be ones that appeal to your primary target market. Your secondary income source doesn’t have to be vastly different from your main one, though some entrepreneurs have achieved success by opting for completely different forms of business. It may be possible to gain another source of income by offering classes and workshops in the area that you specialise in. You could even speak at events or offer consultancy services. An online content writer could offer proofreading services for example, whilst a web designer could make extra cash by helping others develop new skills in coding or programming.
Finding the right secondary income source
To identify a suitable secondary income source related to your main business, you need to take the time to think about the other services that you could offer to your target audience. If you opt for services that will appeal to your target audience, you don’t have to spend as much time attracting a brand-new audience. You could even collaborate with other companies also seeking out secondary income sources. Some people have generated extra revenue by renting out property such as a second home or even just a spare room, selling unwanted goods and investing in other businesses. If the secondary income stream is unrelated to your primary business, this can be more challenging, but it’s certainly not impossible.
Do you have ‘offcuts’ you could monetise?
Growing numbers of companies and individuals are making extra cash through ‘offcuts’. If you make things, you may have leftover materials that you could sell to others, but your offcuts don’t necessarily need to be physical items. Lucrative off-cuts can come in the form of new ways of working, information you have sourced, software that you have designed for someone that could also be used by another company.
Get the balance right
Secondary income streams need to be flexible, sustainable, scalable and enjoyable. An example of a great secondary income stream would be something that you can continue to generate money from whilst you focus on your primary way of making money. Your secondary income stream should leave you with enough time to concentrate on your main revenue stream whilst allowing you to avoid financial pressures and ensure the bills are paid. This second source of revenue can help you maintain your bank balance when your main income stream suffers a dip in fortunes, and you can always rebalance your focus when things pick up, ensuring you’re never short of the revenue that you require.
For more advice, talk to Morgan Reach today if you are in need of personalised accounting services tailored to the needs and demands of your business. Contact us now by giving us a call or completing the form on our website.
DISCLAIMER: This article is for guidance only, and professional advice should be obtained before acting on any information contained herein. Morgan Reach Chartered Certified Accountants cannot accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the content of this article.