When it comes to entrepreneurship, managing multiple income streams is a game-changer. It is how the most successful people you can think of achieve financial freedom. Still, I see young entrepreneurs making big mistakes when they add another line of revenue. So you can avoid them, the following are the most common.
Dos and Don’ts for Adding Income Streams
Just because the mistakes we are about to discuss are easy to make, I don’t want you to be discouraged. I would even argue that having different types of income flows is less dangerous than relying on just one.
That being said, of course, you want to be well-prepared before you begin any new venture. So, let’s get into it.
Don’t Add Income Streams Until the Right Time
Before you start putting time and money into this new project, ask yourself this question:
Are you even ready to add more income streams? Because if you are not working your main hustle to its maximum potential, putting more on your plate is detrimental.
Your main revenue flow needs to be stable – otherwise, your second one will struggle, as well. With that in mind, the next tip follows the same principle.
Do Keep Things as Simple as Possible
Whether you are creating a product or investing, don’t overcomplicate things.
Some rules of thumb I apply
to potential income streams are:
- For products, don’t add features
without value. - Execute development and operations
in as few steps as possible. - Diversification: Don’t be tempted
by the investing myth.
Your main revenue flow needs to be stable – otherwise, your second one will struggle, as well.
Streamlining your products, operations and investments keeps costs down and business running smoothly. After all, you want to add income streams to make your life easier, not harder.
Do Add Income Streams Through Your Main Pipeline
One of the most overlooked ways to add income streams is also the easiest way.
As I discuss in my “How to Become a Millionaire” series on my YouTube channel, look for ways to make more money while in your current role. You may be leaving money on the table where you are. (This is not asking for a raise, by the way.)
Look for opportunities to add revenue like earning commissions, and getting bonuses for achieving milestones or exceeding sales expectations.
Further, my last piece of advice on this subject is about the type of income streams to pursue.
Most Important Rule for Multiple Income Streams
Finally, there is something almost everyone gets wrong about multiple streams of income: They choose flows that have nothing to do with one another!
This has always made no sense to me. Because if you want to be successful with anything, you should start with a topic in which you are knowledgeable. Therefore, when getting into new income streams, they should be adjacent to what you already know and are good at.
At the end of the day, my goal for you is to be great. So, get out there and do it.
