The Skinny on Creating Multiple Income Streams
Whether you have several income streams from the same business, or pursue two different ventures altogether, what it adds up to is splitting your time, money and energy between two businesses, which leads me to the following.
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I recently became a contributor to Yahoo Answers, which by the way, is an excellent way to build your credibility and convert prospects into paying customers.
What is Yahoo! Answers? Those seeking answers to questions write in with their concern, and anyone - hopefully with knowledge -- answer them. You get credits for Best Answers, which increases your visibility. Learn more here.
The top contributor in the category I like, Business & Finance, is Isabel Isidro, the co-founder of PowerHomeBiz.com http://www.powerhomebiz.com/, an online magazine for home business entrepreneurs.
PowerHomeBiz.com, by the way, is one of the best sites on the web for dispensing information on starting a business - any type of business - from home. At any rate, a user wrote in with the following question on YahooAnswers:
Question: I have two ideas for a very niche but underserved market and I'd like to get my foot in the door now with both of them. They are two very different businesses that target the same market. When both are up and running they can actually support each other.
One is a publication and the other is clothing manufacturing. The publication could potentially serve as an advertising medium for the apparel.
Should I focus on one first? If so, which one should I start with?The reason I want to do both at the same time, is that I'm worried other competitors may get there before me - the old "don't steal my idea" syndrome..:)
Mucho Gracias
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Answer: My answer to the question, "Is it wise to start two businesses at the same time?"
Answer: My answer to the question, "Is it wise to start two businesses at the same time?"
Dear Amitaf:
I can tell you from personal experience that you should definitely NOT start two businesses at the same time -- even if they are in the same niche. I did this a few years ago, and I barely escaped with one business intact. One was an editorial staffing agency. The other was an online, ethnic crafts business, EthnicHomeDecor.com, which did not survive.
Get one off the ground first and make it profitable. Then, start the second one. Why? Two reasons:
(1) Money: You don't want to split your resources. Marketing -- of any business -- will take up a huge chunk of your startup capital. Most entrepreneurs don't have enough of this to go around. Don't split it between two enterprises. Use it to build a solid foundation for one business.
Once that one is successful, it could support the other one -- especially as they are in the same niche.
(2) Time: As you probably know, starting a business takes herculean effort. I've owned two businesses over the last 10 years and I can tell you, it's exhausting. It takes all of your energy to grow one business to the point where it not only gets past the initial stage, but grows into a self-supporting entity.
Dividing your time between two is like putting in half the effort -- even though you will be working twice as hard. Give 100% to one first. Then, take the profits from that to finance the second.
As for other people stealing your idea(s), don't worry about that at all. Why? Again, two reasons.
Why You Shouldn't Worry About Others Stealing Your Ideas
(1) Follow-through: While many think an idea is great, most are not proactive enough to follow through. As I'm sure you know, a great idea is one thing -- doing the work of researching the feasibility of an idea, putting together a business plan, and actually doing the work to get the enterprise open is something else altogether.
Many don't have what it takes to get past the "this is a great idea!" stage.
(2) Passion: The fact that you're so excited by this idea that you have gotten so far as to contemplate opening not one, but two, businesses around your idea says that you're passionate about it. This will leave most in the dust right there.
Passion and hard work eliminate most would-be "idea stealers," so, again, don't even worry about it.
I hope I've given you enough insight to make your decision. Whatever you decide, good luck!
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FYI, this was chosen as the best answer from all those who responded, which got me added points on my very first try - tres cool!
Many freelancers flit from idea to idea in an effort to build enough of an income to sustain themselves. But, experience has taught me that giving my all -- time, energy and money -- to one venture, if done correctly, is much more profitable in the long run.
That's why I like working within a niche. You can create several income streams within it to make a really good living. Eg, I'm a freelance writer and have created several income streams as a freelance writer -- my ebooks and on- and offline seminars are two. I have a couple of more in the works over the next few years.
However, if I hadn't built my reputation in one, I'd never have been able to do the others. Remember, people buy expertise -- what you can do for them.
Remember, flitting from one thing to the next dilutes your expertise (brand, marketing); it doesn't enhance it. So, stick with one thing long enough to piggyback off of its success.
Good luck!
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Upcoming Features in Inkwell Editorial’s Newsletter
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Upcoming Features in Inkwell Editorial’s Newsletter
If you currently have a blog, or are thinking about starting one, you won’t want to miss this interview!
August 15: Meryl K. Evans. I tapped Meryl for an interview because she’s found success in the B2B niche. Meryl has written for some pretty notable clients, eg, PC Today, O’Reilly and Pearson to name a few.
This is where the real money in freelance writing is folks (B2B). I’m as anxious to see what she has to say as I hope you are!
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