30 January 2024

The Secret to Small Business Survival: Diversify Your Income

By Ronald Smith

Running a small business can be tough. It’s like navigating through a maze, never knowing what challenges lie around the corner. But there’s a strategy, a secret weapon, that can help you not only survive but thrive in this uncertain world: diversifying your revenue streams.

You might be asking, What does that even mean? Well, let me break it down for you. Diversifying your income is about spreading your proverbial eggs into multiple baskets. It’s like having a safety net, a backup plan, in case one revenue source dries up.

Think about it this way. Imagine you have a lemonade stand. It’s doing well, and you’re making some good money. But what if one day, your customers stop coming? Or what if a new lemonade stand pops up right across the street, stealing all your customers away? That’s where diversification comes in handy.

Instead of relying solely on your lemonade stand, you could also offer freshly baked cookies or homemade ice cream. By expanding what you offer, you attract a wider range of customers and decrease your dependence on a single product or service. This way, if one aspect of your business falters, you have others to fall back on.

Diversifying your income might sound complicated, but it doesn’t have to be. Start by thinking about your strengths and passions. What else could you offer that complements your existing business? Maybe you’re great at making crafts or love writing. Consider selling handmade jewelry or creating an online course to share your expertise.

Another way to diversify is by targeting different customer groups. If your current customers are mainly adults, think about how you can attract younger customers as well. Maybe offer a kid-friendly version of your product or create a loyalty program that appeals to families.

Remember, the key to success is innovation and adaptability. Stay curious, keep exploring new opportunities, and don’t be afraid to take risks. Diversifying your income might require some extra time and effort, but the rewards can be immense.

So, if you’re a small business owner, don’t put all your eggs in one basket. Diversify your income, embrace new ideas, and watch your business flourish. Trust me, I’ve been there, and it’s the best decision I ever made.

The Secret to Small Business Survival: Diversify Your Income

Unpredictable customers and worries about a possible economic downturn are causing small businesses to come up with different ways to stay competitive. A new trend called multi-hyphenate businesses is becoming popular among them. These businesses combine different sources of income all in one place. Square, a company that helps small businesses, says this is happening more and more.

Traditional businesses are changing their models too. Wineries are teaming up with places where people can taste their wine. Bookshops are adding cozy cafes for customers to enjoy. Even beauty salons are starting to sell products in addition to their services. These businesses are adjusting to the changing economy and showing others how to bounce back in the future.

When I looked at all the data from Square, which analyzed millions of transactions from different sellers in various industries, like food, shopping, and beauty, I discovered something really interesting. It seems that subscriptions are becoming more and more important for businesses to keep their customers engaged. They’re offering all sorts of subscription services to do this. For example, restaurants are now selling bottles of their famous sauces, wine shops are sending out packages of wine every three months, and beauty salons are offering monthly subscription services.

This new trend is really taking off. Can you believe that 74% more sellers have started using subscriptions compared to last year? And the revenue from these subscriptions has gone up by a whopping 136%! This just goes to show how effective subscriptions can be in boosting sales. In fact, by the second quarter of 2023, businesses that use subscriptions were getting 22% of their revenue from this channel alone.

I’m Ashleigh Ratchford, the proud owner of Ashleigh Bakes Daily in Durham, NC. Today, I want to share with you my amazing experience with something that has truly changed the game for my business: the monthly subscription box. It has been a game-changer that skyrocketed our sales and left our customers absolutely thrilled!

Now, you may be wondering, what’s all the fuss about subscriptions? Well, let me tell you, they’re not just a passing trend. In fact, they have become a reliable source of income for many businesses, including mine. Surprisingly, over half of the subscribers have stuck with us for more than six months! This incredible data shows that consumers everywhere are loving this innovative and fresh way of doing business, regardless of the industry.

Did you know that retailers are stepping up their game when it comes to making the in-store experience special? It’s true! They’re getting creative and offering mixed-use retail experiences, which means you can do more than just shop. For example, I’ve noticed a whopping 68% increase in retailers using Square’s restaurant software to provide delicious food and drinks right in the store. How cool is that?

But that’s not all. Retailers are going above and beyond by organizing awesome events and workshops. They want to give you even more reasons to visit their store. And guess what? It’s working! In fact, the number of retailers using Square Appointments to schedule these unique experiences has gone up by 16% compared to last year.

So next time you’re out and about, don’t just think of stores as places to buy things. Think of them as exciting destinations where you can have amazing experiences. Get ready to shop, eat, learn, and have a blast!

Let’s make retail fun again!

In the restaurant industry, things are always changing. It’s not just about sitting down to eat or getting takeout anymore. Restaurants are finding new ways to bring in customers and keep their businesses thriving.

One way they’re doing this is by offering catering services. More and more restaurants are expanding into this area, seeing it as a great opportunity to reach new customers and bring in extra income.

But it doesn’t stop there. Restaurants are also getting creative with their offerings. They’re hosting cooking classes, workshops, and events, giving people a chance to learn something new while enjoying a delicious meal.

And now, Square is teaming up with Printful to help restaurants take their businesses even further. With this partnership, Square users can easily start selling merchandise through Printful’s platform. This opens up a whole new world of possibilities for restaurant owners, allowing them to expand their reach and grow their businesses.

It’s all about adaptability in today’s market. Businesses are realizing that they need to be able to change and evolve in order to stay competitive. By diversifying their revenue streams, restaurants are not only protecting themselves against economic downturns but also ensuring steady growth in a constantly changing landscape.