Have multiple revenue streams

With the recent 44 percent kwacha devaluation, we have all seen how tough the economic environment has become.

Like in any crisis, there are always winners and losers. For those who invest on the stock exchange, experts among them keep saying this is the time to invest in the banking sector because according to them, banks make good money in such a situation.

But what would be the advice at a personal level, practical advice? I think that the best thing one can do is to have multiple revenue streams. Your salary will never be enough, if you work.

Even salary increases will never completely mitigate the effects of devaluation. And if you are in business, one business cannot suffice either. You need multiple revenue streams and below are the reasons why:

1.          Reduced risk of failure: Since you earn your money from a couple of sources, it means that if one or more of your income streams stops, you can rely on the remaining revenue streams and even grow them thereby averting total failure on the income side of your life.

2.             Increased stability and security: With multiple revenue streams, you have a better chance to smoothen your minimum level of availability of cash. When one revenue stream struggles, others are likely to be buoyant, thereby making up for the losses elsewhere, helping you to maintain a good level of financial stability and security. For example, some of your revenue streams will be stronger during the rainy season and others will do better during the dry season, thereby giving you even a seasonal smoothening effect.

3.          More opportunities for growth and expansion: When you have one revenue stream, your chances for expansion and growth are also limited to one channel. The more revenue streams you have, the more chances you create for your growth and expansion. Even if your main revenue stream gets constricted, you will expand and grow on your secondary line of financial support.

4.          Increased flexibility and adaptability: With a single revenue stream, you are very limited. For example, if you are employed, you have to wait for the 25th or 27th day of the month to earn money. But, if you have other revenue streams, it means that you have other monies come in at different dates and some of the revenue streams might even give you weekly or up to daily incomes.

5.          Ability to test new ideas and markets: When you have one revenue stream, you have no luxury to test big ideas on it. If it is a business, you will still be afraid to try new markets because you will feel very exposed. Having multiple revenue or income streams gives you the backbone to lean on as you test new markets and even new ideas. This way, you increase your chance of doing really well.

6.          Diversification of customer base and networks: When you have multiple revenue streams, you expand your contacts among the customers and networks of people that you deal with. This way, you expand your goodwill and your potential. In business terms, this means that you have a bigger catchment area and you can even expand your ‘share of wallet’ and make more money per person and from more people thereby really maximising your total income.

Do not do it the traditional way of having one good job for life and dedicating your whole self to just the one job. Have other revenue streams. Even top chief executive officers of big companies do not rely on their single though usually big salary. They own properties for rental incomes, they own lodges and trucks, tankers, petrol stations, big farms and schools and so on.

They know best the power of having multiple revenue streams. In this tough economic environment, you have even additional reasons to justify your urgent need for expanding your income streams.

Do not be left behind and expand now or start now to have more than a single source of income. This way, you will truly rise and shine! Good luck!