4 Income Streams Give You a Potential 75% Guaranteed Income When It Goes Bad
Every business knows its ups and downs, conjuncture and other outside factors influence buying behaviour of people in general. Spreading the risk is a well known and well executed strategy of many successful entrepreneurs. If you want to become one of them, you'll have to learn how to do it. Spreading the risk A silly example is being an ice cream vendor - 4 seasons in a year, all with their different pros and cons. 25% spring25% summer
25% autumn
25% winter (goes up to 75% if you live in Europe hehe) It's not a truthful representation of how much they sell in summer or winter, but it's just to prove a point. If you're one of the less advanced entrepreneurs and you want to make quick summer money, you will focus on having a small shop on a beach or a cart in the street. The sun shines and many tourists are attracted to your stall. Amazing season! The next year however, there's a lot of rain and people stay away from the coast, a massive drop in income struck you and you fall back to only 25%. Summary: You focussed 100% of your business on one season. One bad season strikes you and you lose 75% of your income. The struggle will start to overcome the other three months now. If you're a smart entrepreneur, the ones I try to convince with my consulting services, you will spread the risk and find other sources of income. In the case of the ice cream venter, think of where you can sell your creamy paste when the sun is not shining. Fill in the three blank seasons, for example: Spring: Organise cooking classes and teach people how to make their own artisanal ice cream.
Autumn: Try and sell high quantities of your product to hotels and restaurants
Winter: Experiment with hot and cold, sell your ice cream together with a hot Belgian Waffle! Now you're covering the whole year and one bad season potentially only affects 25% of your income. Your 75% drop of income in the summer now only affects you for about 18% of your yearly income. Spreading the risk also gives you new experimental breathing space By spreading the financial risk of your business, you open up new perspectives. If you're only risking 25% of your income, you may start to give it a try to start something new. In the case of the vendor, why not experiment with a new range of non conventional tastes, basilicum ice cream for example!? It's possible you're tired of your business location. When you've spread the risk, you can find a new spot and test it properly. Should you fail, you can still go back to the roots, but you had a chance for trying. I'm not an ice cream vendor I'm an online entrepreneur I know I know. If you're really an entrepreneur, you should get the picture and render this article for your specific case. If you're only generating content, it's a smart idea to find alternative "products" to supplement it. When I had my military aviation website, my main income was from AdSense. Imaging getting banned for some reason, what do you do? I spread the risk and started selling my own posters, t-shirts, mouse pads, flight simulator hardware, pilot gloves and suits. I was able to generate at least 6 sources of income and I opened up the option to experiment with ads.BusinessPJ is a brand new honest approach to achieving a passive income through hard work and logical thinking. Visit http://www.businesspj.com and get started today. My very best regards, Pieter-Jan Verschaeve Article Source: [http://EzineArticles.com/?4-Income-Streams-Give-You-a-Potential-75%-Guarantee...] 4 Income Streams Give You a Potential 75% Guaranteed Income When It Goes Bad
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