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How
Successful Companies Turn Hidden Assets into New Revenue
Streams
© 2002 By James Wilson
When
business owners develop revenue sidelines, they are creating
revenue safety nets. Though they may not know it, they are
also creating an inexpensive means of expanding their
businesses.
Having alternate revenue streams can also produce unexpected
sales treats, like icing on a revenue cake. In fact,
occasionally the sidelines become mainlines!
"Okay," you say, "In theory this makes sense.
But how do I create sidelines?" Here's how.
*Find new uses for your existing products.
Take the case of.
Heavenly Ham, a large Atlanta-based specialty
ham store franchise. At the holidays and other special
occasions, consumers flocked to buy its Ham. However, the
revenue from these infrequent occasions did not compensate
for the slow ham sales the rest of the year.
Heavenly Ham knew it would have to close some of its 186
franchises if it did not take action quickly. It did.
The company investigated alternative uses for its core
product--and found them. Heavenly Ham started a catering and
boxed lunch program which centered on ham.
Well, the boxed lunch sideline has been very successful.
Marketing director Robin Bayless estimates this sideline
accounts for up to 45 percent of each store's revenues!
Quite a sideline success story, isn't it?
BEAT the Cold Winter of 2007 ARIZONA'S NEWEST WONDER
Kartchner Caverns State Park opened in 1999. This stunning limestone cave system is one of the top in the world. Visit Sunny Southwest this cold winter |
* Venture into a related field.
Take the case of.
Moto Photo, a Dayton franchise of 400 photo
processing shops. To create another revenue stream, its
officials added a small portrait studio to its U.S.
locations. The move was not too risky, since the company
already had a head start in photography.
What were the results? Sid Davidowtz, company director and
franchisee of a Paramus store, stated, "The portrait
studios are a nice complement to our film processing
business." Very nice indeed--the "sideline"
raised each store's revenue by an average of 30 to 40
percent!
* Sell a product or service that your company developed
for its own use.
Take the case of.
Hyclone, a bio-tech company located in Logan,
Utah. To resolve a bad leakage problem, Hyclone decided to
develop its own containers to hold its product: Fetal bovine
serum used for cell testing. Since Hyclone's special
containers worked so well--and to bring in another source of
revenue--Hyclone started to market its containers to other
companies. It turned out to be a very
wise decision indeed.
BEAT the Cold Winter of 2007 ARIZONA'S NEWEST WONDER
Kartchner Caverns State Park opened in 1999. This stunning limestone cave system is one of the top in the world. Visit Sunny Southwest this cold winter |
* Convert your knowledge into a sideline.
Take the case of.
* Technology & Business Integrators of Woodcliff,
NJ, which tells clients how to use technology to grow their
revenue. Now TBI is expanding its own revenue by turning its
service into a product, according to Gary Venner, director
of consulting. The company had already cultivated
"best practices" at client companies. Well, they
converted these "best practices" into a white
paper that other companies buy. It worked so well, TBI
is now finishing developing a sideline off the sideline: An
online tutorial on best practices. You also can find a
product your company developed in-house, such as a software
program, and market it to external customers. It is
relatively risk free, too.
After all, you've already tested the product yourself.
If the product saved you money or made you more efficient,
then it will probably do the same for others-so they will be
quite willing to pay for it.
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ABOUT THE AUTHOR:
James Wilson, The Best Practice Detective, reveals the
proven-successful, profit-certain, winning marketing secrets
and best practices of America's most innovative companies.
Creatively imitate the strategies of other successful
entrepreneurs! Get
the free ezine, Best Business Tactics at:
http://www.Bestbusinesstactics.com
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