Diversification is important when it comes to your money because the more you do it, the more security you provide for yourself and your business.
When you diversify your income stream, you give yourself more of a safety net in case something happened, and you lost one of those streams of income. Here are five ways to diversify your income stream.
Bootstrap other business ideas
Bootstrapping is basically building a company from the ground up with just your personal savings and with a lot of luck. To make this a more successful venture, it’s important to find business idea that is going to work well and this is where other businesses come into play.
You can take some creative license from businesses you know about or follow and essentially take their idea and make it into your own. To bootstrap other business ideas, make sure you do plenty of research and figure out how you can make that idea better and something that’s unique in its own way.
Simply copying a business idea in every sense of the word is going to cause you a fair few problems, so try to get inspiration from their ideas and turn them into something you can do on your own scale, with your own skills and experience.
Launch a new product line
If you’re looking to diversify your business income, then one way to do this is by launching a new product line. It’s what beauty brands do to help encourage more sales and to attract new customers to their brand. The same goes for any business that sells more than just the one product or service. If it’s been a while since you last created something to sell, then now is the time to do it.
When it comes to product launches, you want to be wary on how frequently you are releasing new products. You don’t want to do too many that you end up giving your customers too much to choose from. A lot of companies will launch products based on previous product launches or for those in retail, it’s usually seasonal launches to co-inside with the time of year like Christmas or Valentine’s Day.
Invest in real estate
Real estate is an ideal way of investing your money, whether you choose property to rent out or you purchase shares or a cut of the property’s ownership to mature as time goes by. There are lots of real estate investment opportunities, but like all investments, it’s essential that you’re doing your research. You may want to purchase real estate that you can then rent out to other businesses in the form of office blocks or floors of a building.
Rentals are great because they help to generate a passive income that you don’t really need to do much with.
Invest on p2p platforms
Peer-to-peer lending is another form of investment that is worth considering due to its mainly short-term potential. Since the birth of the internet, it’s provided a lot more in the way of interconnectivity and that means there are more consumers who need loans. These p2p lending platforms connect the investors with those looking for loans. These loan amounts vary and so it gives more flexibility for those with smaller amounts of money to invest.
If you’re a small business or entrepreneur and you perhaps don’t have the huge bank balance to invest in the big projects, then p2p lending might be worth dipping your foot into.
Invest in ETFs
Exchange-traded funds have features that can be ideal in making these types of investments great for young investors. This is due to the amount of capital you’d need to invest. They help to build up your portfolio in a much quicker manner than other traditional investments would. ETFs are traded throughout the day, and they provide relatively low-cost structures. This is what tends to make them so popular amongst many investors.
Another great reason why they’re good is that the issuers of these ETFs are paving the way with new and innovative products in hot sectors. That means that they’re a great way to keep up with the trends and which may, in turn, help your own business in its future.
Diversifying your income stream is always handy to do as a business owner or entrepreneur, so use these tips to make sure you diversify your portfolio. The more streams of income you can create, the more security you add to your investments overall.