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Why companies need to create new revenue streams

What if Amazon still only sold books? What if Starbucks still only sold coffee? What if McDonald’s only sold hamburgers? Would they be Amazon and Starbucks and McDonald’s? Would you have ever heard of them? Maybe, but probably not.

So why are you still only selling the same few products or services?

What Amazon and Starbucks and countless other great businesses – big and small alike – learned is that one key to continued success and growth is creating new streams of revenue, multiple profit centers.

Look, I get it, being self-employed can be laborious. Even after things are finally off the ground and have become a reality, there is always more work to be done. In particular, one of those ongoing challenges is figuring out how to create a regular, steady stream of income. Some days this feels effortless, while others, not.

If you’ve been in it for a while, then you already have already figured out a few solid strategies that work for you and your business. You know that this sale or that product is a winner. You have created what I call a recipe for success. Like a chef or a baker, your recipes can be used time and time again to create the same financial result. This is how you make your dough (pun intended). Your recipes could be anything: Twitter ads, monthly sales, an e-newsletter promotion and so on.

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However, the deal with the recipe method is that it can backfire.

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