It’s no secret that there are a lot of questions about the current economy and what’s to come. Will there or won’t there be a recession? Will the housing market collapse? What will the economic landscape look like in 3 or 6 months?
While I’m no fortune teller, and my crystal ball broke years ago, one thing I do know is that the best solution for not knowing what comes next is to take control of your future in the areas you can.
As a business owner you are responsible for more livelihoods than just your own. You have team members who count on you for their income, clients who count on you to provide for them, and your family who counts on you.
Knowing that you can continue to provide for those people, regardless of what the outside work has going on, is invaluable. It provides peace of mind and confidence so you can go out there and kill it.
"Having multiple income streams is the key to financial stability for online entrepreneurs."
One thing I recommend to all my private coaching clients, and I wanted to share with you, is the importance of diversifying your income. As a carepreneur it’s essential for you to have predictable revenue and business that you can plan on. As a coach and course creator you have enormous opportunities for setting yourself up for stability and success. And diversification is the way to do that.
Overall, diversifying your revenue streams can provide financial stability, increase revenue potential, allow you to better serve your clients, and most importantly, make your business more adaptable to changes in the market.
Let’s look at each of these.
Increased stability: By diversifying your revenue streams, you reduce the risk of being heavily reliant on a single source of income. If that one source dries up, you could be left in a precarious financial situation. By having multiple sources of income, you increase your stability and reduce the impact of any one source of income declining.
Greater revenue potential: By offering different products or services, you open up new revenue streams that can increase your overall income. For example, if you’re a coach who currently only offers one-on-one coaching sessions, adding group coaching or online courses can expand your customer base and revenue potential.
Better serving your clients: Offering a range of products or services can help you better meet the needs of your clients. Some clients may prefer one-on-one coaching, while others may prefer a more self-directed approach, like an online course. By offering a variety of options, you can cater to different learning styles and preferences.
Adaptability to changes in the market: The market for coaching and online courses is constantly evolving, and diversifying your revenue streams can help you adapt to changes. For example, if one service or product becomes less popular, you can shift your focus to other offerings that are in demand.
Ok, great. Now that we know how important it is to diversify your income, and how many ways diversification can provide stability and predictability, let’s take a look at some diversification options.
One-on-one coaching: This is the most traditional revenue stream for coaches, where they work with clients on a one-to-one basis. This can be done in-person, over the phone, or via video conferencing.
Group coaching: Similar to one-on-one coaching, group coaching involves working with multiple clients at once. This can be done via video conferencing, and it allows coaches to serve more clients at once.
Online courses: Creating and selling online courses is a popular way for coaches to diversify their income. Online courses can cover a wide range of topics and can be offered in various formats, such as videos, webinars, and ebooks.
Membership sites: This involves creating a subscription-based service where members pay a recurring fee to access exclusive content, such as webinars, live Q&A sessions, and community forums.
"If you're an online entrepreneur, diversifying your income is the key to longevity."
Affiliate marketing: This involves partnering with companies that offer products or services related to your coaching or course content. You can earn a commission for any sales made through your affiliate link.
Speaking engagements: Coaches and course creators can also generate income by speaking at events, conferences, and seminars. This allows them to share their expertise with a wider audience and promote their services.
Consulting or freelancing: Some coaches or course creators may also offer consulting or freelancing services related to their area of expertise, such as writing, graphic design, or social media management.
Product sales: Some coaches create entire brands around their coaching process. Communities are built around the branding and people feel like they are a part of something bigger. An additional revenue source could be a small product store (think Shopify, Etsy, etc) that could be used to sell branded items like tshirts, tumblers, etc.
With so many options to diversify it begs the question “If there are so many ways to do this, and it’s so important, why aren’t more people doing it?”
There are a lot of mistakes that can be made when trying to diversify, and if not done right it can seem like it doesn’t work.
A survey by HubSpot found that businesses with multiple revenue streams had 33% higher revenue growth rates than those with just one revenue stream.
Some of the mistakes that can come up are:
Spreading yourself too thin: One of the biggest mistakes entrepreneurs make when diversifying their income is trying to do too much at once. It’s important to focus on a few key income streams and do them well, rather than trying to pursue too many at once and not doing any of them effectively.
Not understanding your target audience: It’s important to have a clear understanding of your target audience and their needs before diversifying your income. If you don’t understand your audience, you may end up creating products or services that don’t resonate with them.
Failing to track your metrics: It’s important to track your metrics and measure the success of your different income streams. Without this data, you won’t know which income streams are performing well and which ones need improvement.
Not adapting to changes in the market: The market is constantly changing, and it’s important to be adaptable and adjust your income streams accordingly. Failing to do so can lead to missed opportunities and lost revenue.
According to a survey by Shopify, 59% of entrepreneurs said they have diversified their revenue streams to help grow their business.
Neglecting your core business: Diversifying your income should never come at the expense of neglecting your core business. Your core business should always be your top priority, and diversifying your income should be seen as a way to complement and enhance it, not replace it.
If you can manage to avoid these mistakes, which is a bit easier once you’re aware of them, you can find great success with this strategy. And you will find great confidence and peace of mind knowing you are covered no matter what happens in the world.
As you begin on this journey you may find yourself up against some limiting beliefs that can get in the way of your progress and success.
You may find yourself thinking “I’m not good enough.” This is so common, and is a nagging thought that tends to come up for us anytime we are starting something new. It’s valuable to remember that this is common and everyone faces this at one time or another. Everyone. But by focusing on your strengths and past wins, and seeking out opportunities that align with your skills and interests, you can work through this and take the needed steps to move forward.
You may also find yourself thinking you don’t have enough time. Man, isn’t that the truth! And this will take time and effort. There’s no doubt. But if you break your goals down into manageable tasks, set reasonable expectations for yourself (this is where I usually blow it) and make yourself a schedule you’ve got a good shot at making this work.
Not knowing where to start is another common belief to get past when starting any kind of new project. Starting with research and seeing out experts and mentors will be helpful in taking those initial steps. I’m also including some first steps you can take at the end of this article, to get you started. More often than not, it’s taking those first few steps that are the hardest. Once you’re on your way it’s much easier to maintain momentum.
What about if you have special considerations, like living with ADHD (one of my superpowers) or balancing caregiving and running a business (also something I get to enjoy)? I’ve got a few suggestions for you too.
"Creating multiple streams of income is not a luxury, it's a necessity for online entrepreneurs."
For the Entrepreneur with ADHD
Prioritize and simplify: As an entrepreneur with ADHD, it can be challenging to juggle multiple tasks and projects at once. Prioritizing and simplifying your tasks can help you focus on what’s most important and prevent overwhelm. Identify the income streams that are most important to you and focus on those first.
Leverage your strengths: Entrepreneurs with ADHD often have unique strengths, such as creativity, flexibility, hyperfocus, and the ability to think outside the box. Leveraging these strengths can help you come up with innovative income streams that align with your interests and passions.
Stay organized: Organization is key for entrepreneurs with ADHD. Use tools like calendars, to-do lists, and project management software to keep track of your tasks and deadlines.
Create structure: ADHD can make it difficult to stick to a routine, but creating structure can be helpful when diversifying your income. Set aside specific times for different income streams and create a routine that works for you.
Seek support: As an entrepreneur with ADHD, it can be helpful to seek support from others who understand what you’re going through. Joining a support group or working with a coach or mentor can provide you with the accountability and guidance you need to stay focused and motivated.
A survey by Upwork found that 75% of freelancers have diversified their income by offering different services or products.
For the Carepreneur (If you’re balancing caregiving with entrepreneurship, this is you!)
Start small: Diversifying your income doesn’t have to happen all at once. Start by focusing on one or two income streams that align with your skills and interests. This will allow you to test the waters and see what works without overwhelming yourself.
Delegate tasks: Carepreneurs often have a lot on their plate, and delegating tasks can help free up time and mental energy for diversifying your income. Consider outsourcing tasks like administrative work or social media management to a virtual assistant or freelancer.
Create a schedule: Time management is key for carepreneurs who want to diversify their income. Create a schedule that allows you to prioritize your core responsibilities while also making time for income-generating activities.
Collaborate with others: Collaborating with other carepreneurs or entrepreneurs can help you leverage your skills and network to create new income streams. Look for opportunities to partner with others who have complementary skills or services.
Automate processes: Automating processes like email marketing or payment processing can help save time and streamline your income-generating activities. Consider using tools like email automation software or payment gateways to make these processes more efficient.
Whatever category you fall into, and whatever superpowers you get to enjoy along with running a business, automations can save you on this journey. They can be your silent team member that gets paid less than the others but does all the heavy lifting of your business. Here are some key automations to get into place early on that will save you hours every week.
A report by FreshBooks found that 44% of self-employed professionals have diversified their income by offering different services or products.
Email marketing automation: Email marketing is a powerful way to build relationships with customers and promote your products or services. Automating email campaigns can help you save time and streamline your marketing efforts. For example, you can set up automated welcome emails, abandoned cart emails, or product launch sequences.
Payment processing automation: Processing payments manually can be time-consuming and prone to errors. Automating your payment processing can help you save time and ensure that payments are processed accurately and securely. Platforms like PayPal and Stripe offer easy-to-use payment processing tools that can be integrated into your website or online store.
Social media automation: Social media is an important part of many entrepreneurs’ marketing strategies, but it can also be a time sink. Automating your social media posting can help you save time and ensure that you’re consistently posting high-quality content. Tools like Hootsuite and Buffer allow you to schedule posts in advance and track your social media analytics.
Customer support automation: Providing excellent customer support is essential for any online business, but it can also be time-consuming. Automating your customer support processes can help you save time and ensure that customers receive prompt and helpful responses. For example, you can use chatbots to provide 24/7 customer support or use canned responses to quickly answer common questions.
Analytics automation: Tracking your metrics is essential for measuring the success of your different income streams. Automating your analytics can help you save time and ensure that you’re collecting accurate data. Tools like Google Analytics and Mixpanel allow you to set up automated reports and dashboards to track your key performance indicators.
Ok, I know there’s a lot here. A lot. Because this is such an important topic, such an important time to learn about it, and there is so much to consider I didn’t want to leave anything out. I hope you come back to it as you are in this process to get ideas, answer questions, and design your diversification plan.
Like anything else, reading it, being interested in it, and thinking about it won’t get you where you need to be. You need to take action. And the sooner you take action the more likely you will rock it at this!
A study by the Kauffman Foundation found that entrepreneurs with multiple revenue streams had higher revenue growth rates than those with just one revenue stream.
Here are some action steps you can take to get started today.
Assess your current skills and resources: Take stock of your current skills, resources, and assets. Consider how you can leverage these to generate new income streams. For example, if you’re a skilled writer, you could consider writing articles or eBooks to sell online.
Explore new income opportunities: Research different industries, business models, and income-generating activities that align with your interests and skills. Consider attending webinars, reading articles, or talking to experts in your field to learn more.
Start small: Rather than diving headfirst into a new income stream, start small by testing the waters. For example, you could launch a small-scale product or service offering and assess its performance before committing more time and resources.
Automate your existing income streams: Look for ways to automate your existing income streams, such as setting up email marketing campaigns, payment processing, or social media posting. This can free up time and energy for exploring new income opportunities.
Network and collaborate: Seek out opportunities to network and collaborate with other entrepreneurs or professionals in your field. This can lead to new income-generating opportunities and help you stay up-to-date on industry trends and best practices.
