Diversify Your Revenue Streams

Depending on a single revenue stream is one risk that even risk takers should avoid. Why? Because revenue streams can fluctuate more dramatically than the 70-foot tides in the Bay of Fundy. Seasonality, the economy, the weather - any number of factors outside our control can turn a roaring river into a meager trickle.

The most successful entrepreneurs set up multiple streams of revenue around their core business. The best entrepreneurs figure out ways to "go deep" with their customers and provide them with additional products and services. They devise ways to work with joint venture partners who have customers that may want their products or services, or who have revenue streams that are different, but complementary, to their own. As the saying goes, "there is more than one way to skin a cat."

I call the diversification of revenue streams a Revenue Octopus. Creating a Revenue Octopus is a powerful method you can use to diversify your revenue streams and supercharge your business, whether you are preparing for hyper-growth or seeking stability in uncertain economic times.