Making money comes out of intention, not by accident! When I was younger, I thought making serious money was something unattainable except for a very few. But now I know it is actually a science built on knowledge, strategy, and implementation. Did you know there are 4 different revenue strategies?
The employee revenue strategy is the one most of us grew up with. In this model, I get paid an hourly wage less taxes and it’s up to me to determine the best way to spend and save it. As a business consultant here in San Luis Obispo I will tell you to “Get rid of any idea you might have of using this one.” Using this model is not for us because no matter how hard we work; no matter how trustworthy or competent we are, we will be doomed to never having enough of either money or time. Wealth building does not come from accepting what others want to pay us.
Another very popular model is the lateral revenue strategy. This is the one most entrepreneurs use when starting a business and it generally works well. If my net income is not enough, I can quite simply make more money. I can get more customers, keep a watchful eye on my expenses, and I can work as hard as I am prepared to work. Unfortunately this model has a serious flaw. It is controlled by how many hours I can work, how many clients I can work with, and how much I can charge. My ability to generate wealth will ultimately reach a place where I just cannot make more money. *Sigh.*
Now here is the really good news. A spiral revenue strategy is one that is good for you and good for your customers. How it works is that when I solve one problem for my clients, they come to know and trust me and will look to me for other things. An example would be how a popular software maker operates their business. First they sell me bookkeeping software. I find I am happy with it so then when I need a payroll feature I buy from them. Then as my business grows, I need a payment processing system which I buy from them. Please know that one of the caveats of this revenue strategy is that I must have something to sell that does not require me to put forth a lot of my time.
The last revenue model is the funnel revenue strategy. It can dovetail nicely into a spiral revenue stream or stand on its own. Sometimes what our customers need is not an additional product. Maybe they just need a better solution. I will use the software company example again. Their product meets the needs of many small businesses but is still not a one-size-fits-all solution. As a company grows and becomes more complex, they will find they need a much more sophisticated (and expensive) software. Under the funnel model, I make more revenue from the same customer simply by providing a more in-depth solution or by updating something they already bought from me.
As a business consultant in San Luis Obispo, I know that it is high time each of us embraces the use of the science of making money. If you tell me that it’s not about the money, I am going to challenge that statement. We all want to have enough to pay our bills, put our children through school, have some fun, save for our future, and have resources of time and money to help others. If you are using a lateral revenue strategy, I invite you to ask the question, “What else can I offer to my clients?” and see what you come up with. I know my customers don’t really want to look elsewhere to buy as it takes time and is filled with the peril of the unknown. If they buy from me I am a known commodity. So what more can I do for them?
Let’s not make money by accident when growing or starting a business. If I were your business consultant, I would urge that you make money through intention. Diagnose your business from the perspective of the right revenue strategy for you. Both the spiral and funnel models can drive 6 figure incomes (and more!). Design your revenue strategies with that in mind. Write out a plan and implement it. And by all means, get help. I love being in business and helping others. If you are serious about making money and having all of the things that a strong revenue stream can mean for you and your family, don’t wait, get started now.