While the initial venture is most often the biggest driver of success for a startup company, there will be a point when you might wish to expand. Here, you have to seek out new revenue streams. But discovering and tapping into these new income generators require a strategic approach. Let’s explore how you can find the right venture and jump into it with the help of Virtua Solutions.
Why Looking For New Revenue Streams Is Important For Business Growth
Okay, this might be an obvious question. However, understanding what new revenue streams can give to your business will determine what kind to go for and how to approach them. Beyond the main benefit of giving you more income generators, there are several other benefits of diversifying your startup business revenue stream.
Expanding Your Visibility And Market Reach
Image from True Commerce.
While new revenue streams tap into different markets, they also help bring more potential customers to your original revenue generator. The idea is to create a feeder system that helps facilitate this. When customers explore your newer products, they will be more curious about the other things you offer. That is a great way to lead them back.
Gateway To More Innovation
Branching into a new market often requires exploring new production and marketing strategies. Once you have made these new strategies work for the new market, you can explore how to adopt them for your original products. This ongoing innovation helps the latter develop more and prosper.
Safeguarding Your Business
The startup business scene can be a volatile field. While your first venture might succeed initially, it can struggle later. Multiple revenue streams allow your company to stay afloat even if that happens. With that, you can also shift to a different business model more effectively if your initial venture goes under.
How Your Startup Company Can Discover New Revenue Streams
Finding a new revenue stream might seem easy at first glance. After all, all you need to do is try a new venture and see if it works. But finding the right venture is where it gets challenging. While there is always that uncertainty in any new business venture, looking for one more likely to succeed can save you all the effort.
Gauging Your Current Assets
If you think about it closely, finding a new revenue stream is essentially starting a business again. But you don’t start from scratch here. You already have resources from your first venture. As such, the first thing you want to do is assess your current assets.
Image from CIO Pages.
Here, you need to look into the capabilities you have. For instance, you might already have a team that delivers product support. Or your company already has a side service that adds to your main service’s revenues.
You can explore how to spin off these assets into a whole new revenue stream. But consider how much they can support you. Depending on that, you can determine how to expand them to accommodate the new venture.
Ensuring Business Compatibility
Another thing you would want to look into is the compatibility of the new revenue stream with the existing one. Your goal here isn’t just to save time and effort. You would also want to build an extensive business environment where customers get all the products they need in one go. That gives you more opportunities for return revenues.
Of course, that doesn’t mean you can’t venture into an altogether different revenue stream. But consider how well it would fit into your current business model. The idea is that you don’t want to completely confuse your audience about the new move.
The Revenue Streams Your Startup Company Can Explore
There are multitudes of new revenue streams that your startup business can explore. Here are some of the ones that you can start exploring. Note that you can also combine these strategies to develop an entirely new approach.
Introducing A New Product
This is probably the most straightforward approach to diversifying your startup business. But as mentioned earlier, you don’t just throw a random product into your market. Instead, you want to be more purposeful in deciding what new product to develop.
Image from Snov IO Labs.
Remember that the first customers of this new product will likely be your existing ones. And often, your products only cater to a fraction of what they need for a given task. Thus, your new product should work on filling their other needs. Go through the feedback you get from them and determine what products can help solve their current issues.
New Pricing Models
Revamping your current pricing model is also a great way to explore new revenue streams. The idea here is to reorganize everything to potentially generate more profits. For instance, you can split some of your current pricing tiers into several ones with more varied offers.
Image from Vistage.
Your goal here is to give customers more options on how they purchase your products. But you want to match these new pricing needs to customer demand. For instance, if they are looking for a more budget-friendly version of your service, it would be a good time to introduce new pricing tiers for them.
A New Business Model
This is probably the biggest move that you will make to explore new revenue streams. Here, you revamp the whole or part of your startup business into a different one. For instance, while you might initially produce consumer goods that other companies sell, you can eventually shift to branding the products as your own.
Image from Business Plan.
Shifting to a new business model is arguably the most complex revenue stream generator you can undertake. As such, you want to weigh on what changes will have the largest impact on the startup company overall. You should also assess how your current model will help the move.
Monetization Of Your Startup Company Assets
A novel way of increasing the revenue stream of your startup business without needing to set up a new business venture is through monetization. Here, the idea is that you can use your company assets directly as income generators. There are various forms that you can explore here.
Image from Magnetic Media.
Licensing is probably the most familiar form of monetization for many businesses. Here, you let other companies use your assets. That can include physical and intangible assets, such as the software and products you use internally. Or you could also license your processes to other companies who might want to use them.
Another recent form of monetization is by sharing your assets online. For example, you can share your internally-created training videos on YouTube for audiences who might be interested in them. The online platform then pays you for the right to broadcast and share it with its viewers. That doesn’t generate a large return but can still work as a steady source of additional income.
Helping Your Startup Company Earn More
Whichever new revenue stream you choose to go with, your startup company might require some help to make it succeed. We at Virtua Solutions can help you here by providing various support duties. Be it marketing your new venture or providing customer support for it, you can count on us for your quick deployment needs. Contact us today so that you can get underway with your new venture.