What’s better than having a steady stream of revenue at your franchise business? How about operating a business that draws on two complementary streams of revenue? Or maybe even three or four?
Bringing in revenue from multiple sources isn’t just great for growing and developing your franchise into something bigger and better. It’s also a time-tested way to deal with any changes in demand for your core business offering, such as seasonal sales slumps or trends in consumer tastes and styles.
Your revenue streams don’t have to be complementary – although it tends to be easier when they are. As an owner, your ideal situation is having a range of products and services that cross-sell one another, helping increase the average value of each sale or transaction.
Franchisors are learning the importance of pitching prospective owners on the possibility of enjoying multiple revenue streams and benefiting from the flexibility they bring. Steady cash flow is essential for many small and medium-sized businesses and having more than one way to generate revenue is a helpful way to keep the cash flowing.
Here are some of the other ways your business stands to benefit from having multiple revenue streams.
Keep your customers coming back
In nearly every business scenario, a vital element of long-term success is having repeat customers. What’s also important is turning those regular buyers into bigger and bigger buyers over time. One of the best ways to do that is by giving them more products and services to choose from.
If a customer comes to see your business as their preferred place to take care of a variety of needs, you will have built exceptional long-term loyalty.
Be agile and responsive to market changes
Agility and flexibility are both important qualities in the business world, where the situation is constantly shifting as the tastes and preferences of consumers change and evolve. Likewise, as the pandemic so clearly demonstrated, all kinds of unimaginable market changes may be lurking around the corner, just out of sight. You never really know what’s next.
Buyers change, too. What was popular last year may no longer be fashionable or desirable tomorrow, upending existing styles and attitudes. An older product might be making a comeback while another could be going extinct, reimagined or replaced by new technology. Either way, with multiple revenue streams to draw on, your franchise business will be better equipped to deal with the inevitable market evolution.
Franchise with The UPS Store
The UPS Store is an example of a franchise business that provides owners with a variety of complementary revenue streams. In addition to being the ideal place to handle all your packing and shipping needs, The UPS Store also attracts customers looking for mailbox rentals, printing and shredding, faxing, passport photos and other services. Learn more about our franchise opportunities and use our online form to easily request more information.
