Starting your business on a sure footing requires a plan for developing alternate income streams. Our advice?  Create a reserve cash flow business account!

Let’s face it, walking the tight rope of successful cash management is certainly a skilled balancing act.  During the start up phase, small business owners are often faced with the challenges of learning how to stretch funds to cover operating costs.  Creating and funding a reserve cash flow account is crucial for long term survival.    

Alternate Income Streams Are Vital

Here is where alternate income sources are absolutely vital.  There will most certainly be a time lag in between starting your business and when you can expect your business to turn a profit.  This is why such an emphasis is placed on careful and realistic business planning.

Included in your start up business development plan should be a strategy for income generation through varied business opportunities related to your primary business.  These sources of alternate income  should not be confused with diversification.  A natural part of a small business growth strategy should always include ways to diversify your business.

Weathering the “Start Up Storms”

Multiple income streams are needed at the start up phase to help you weather the “start up storms”.  These storms will come and they will either make or break your new venture.  Preparing for these storms is what will keep your small business ship afloat when you’re experiencing  a cash flow crunch.

Since one of the leading causes of small business failure is lack of operating capital, let’s address how to solve this problem.

Create a Reserve Account

The first thing is to create a reserve cash flow business account, or simply put, a reserve fund.  As it’s name implies, this funding is placed on reserve and not used unless cash flow is at a critical point.  

Fund a Reserve Account

To fund your reserve account, you will need to seek out revenue generating streams which complement your current marketing efforts.  Do some thorough market research to come up with creative ideas for making your business more profitable.  Also, look for income streams which “piggyback” off of your current advertising and promotional efforts.

Income Generation Tactics to Fund

a Cash Flow Business Account

Here a just a few quick examples of how you can piggyback on your current marketing efforts to generate a steady stream of good reserve income.

1.  Affiliate Marketing.  Add affiliate links to your website or in your monthly eNewsletter.  You’ll obviously want to use non-competing products or services which naturally compliment your target customer.

2.  Coaching.  Are you highly skilled or certified in your profession?  Consider coaching others part-time to help them develop the same skills.  You may even want to develop an apprentice program, which may also help you with your current workload.

3.  Consulting.  Offer a “do-it-for-me solution” by working as a consultant.  Use your expertise to help a few select clients in your spare time.

4.  Google Ad Sense.  Joining the Ad Sense program is another way to generate income through your current website.  Keep in mind that ads that will appear are generated by keyword matching.  This means you may be competing against your site’s content with like products or services.

5.  Launch an Association.  Find a niche area in your profession and launch an industry association, like Atlanta hair stylist Taliah Waajid. 

She launched a natural hair organization for hair stylists specializing in the needs of African-American natural hair care.  It has now grown to include a trade and consumer hair show called the World Natural Hair, Health and Beauty Show -- and this is in addition to her primary business running a successful hair salon.  Read more about her income stream by visiting her website at www.naturalhairshow.org.

6.  Make Money Writing.  Use your knowledge, skills and experience to publish a rebrandable newsletter or eBook. 

Perhaps create an industry specific rebrandable monthly newsletter or eBook to help other professionals like yourself grow and increase their businesses.  You may even include affiliate links to add more income potential.  If you need help getting started, consider the eBook Writer’s Guide.

7.  Sub-let Office Space.  If you own or lease office space, consider renting out a small office to a consultant, sales rep or other small business professional that may be in need of a small office space.

For more information on finding alternate income streams, check out  chapter 4: “Scavenge the Shores for Streams” of the Start Up Business Survival Guide.

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