When you are ready to start your new business venture, you need to think about all the ways this product or service can make you money. How many sources of income can you get from this one business? Can you build multiple income streams and make those income streams passive income streams?
How do you make passive income, you ask? Passive income traditionally is made from interest on your savings and investments or rental income. Today we have the internet, automation software and access to many free online tools. Passive income is one of the best ways to stabilise your cash flow. You have products or services that make you money, enabling you to work on other areas of your business.
Passive income is easy with technology. You can automate most processes in your business these days. For example, let’s say you’re the best cupcake maker you know. You can sell cupcakes to friends, family, venues etc., but you can also teach people how to make the perfect cupcake. Or even better – teach people how to make the best vegan cupcake. Did you see what I did there? Veganism is a global trend. Keep up with what’s trending, as it will open up more opportunities for you.
Next time you are baking, why not make a tutorial video on how to make the best vegan red velvet cupcake?
A good starting point using this analogy would be to film yourself making the cupcakes. Then sell that tutorial online. You can automate this whole process. From social media automation to payment automation, you can resell this tutorial thousands of times. Imagine you sold your tutorial for R 100 and sold 1000 a month. You would have made R 100,000 in passive income. You are no longer just selling cupcakes. You are building a business with sustainable income.
You have to start to think differently about how to diversify your income. Multiple and passive income streams are essential for the success of your business. The more ways you can diversify your business and create more access to markets, the more likely your business is to thrive.
Now that you have become familiarised with creating multiple income streams from your products and services, you need to understand who you are selling those products to. Each target market you identify will require a different selling approach, and you need to understand each of those markets. Each market should have a customer profile and avatar so that you can maximise the efficiency of your marketing spend.
When we understand who our customers are, we are more likely to make sales and not waste our marketing budgets.
I have created a template to help you to identify your customers. The template allows you to categorise them by business vertical. This template will assist you in creating your customer avatars.