Uncovering Hidden Revenue Streams
Why Every Startup Needs to Know the lesser known Backstories
When starting a new business, it's easy to focus on the most obvious sources of revenue, such as selling a product or providing a service. However, it's important for founders to remember that there may be other, less obvious ways to generate income for their startup. It is to try and understand the lesser ( or seldom) known backstories no one talks about.
A company may be able to monetise its data or intellectual property or could generate revenue through partnerships or sponsorships. By considering all potential sources of revenue, founders can increase the chances of success for their startup and make sure they don't miss out on any opportunities. It's important to not just focus on what's right in front of you but to also look deeper and see what other possibilities are available.
Scott Adams called it “Confusoply” in the comic strip "Dilbert". However, for founders, it is a way to think outside the box and explore unconventional revenue sources that might confuse their competition. By creating confusion and protecting their unique revenue streams, it can serve as a way to gain a competitive advantage in the market. It's important for founders to remember that there are many ways to generate revenue and by considering all potential sources, the chances of success for their startup are enhanced.
Some examples of companies that may be perceived as being in one industry, but their highest revenue or profit comes from another:
* Uber - Known to be a ride-sharing company, but its highest revenue comes from its food delivery service, Uber Eats.
* Netflix - Known to be a streaming service, but its highest profit comes from its original content production.
* Airbnb - Known to be a vacation rental company, but its highest revenue comes from its professional services division, which helps property managers and landlords with things like cleaning and key exchange.
* Amazon - Known to be an e-commerce company, but its highest profit comes from its cloud computing service, Amazon Web Services.
* Red Bull: Known to be in the beverage industry, but their highest revenue comes from their media and events properties, such as the Red Bull Air Race and Red Bull Music Academy.
Some ways that you can explore additional sources of revienue
* Identify your company's unique data: Look at the data your company generates or collects, and consider how it could be valuable to others.
* Analyse your customer base: Look at your customer base and consider how their information could be valuable to other companies or can you create a new company based on their feedback.
* Evaluate your company's intellectual property: Look at any patents, trademarks, or copyrights that your company holds and consider how they could be monetised.
* Repurpose your code: Look at any code or software that your company has developed and consider if it could be repurposed for use in other industries or for other purposes.
* Look for partnerships: Look for opportunities to collaborate with other companies or organisations that could benefit from your data, intellectual property, or even waste streams.
While there are a lot of obvious ways to generate revenue, this blog just points you to some of the less obvious ways you can continue to explore new sources of revenue.
© Sameer Babbar
sbabbar@sameerbabbar.com
Disclaimer: This is for information only. It does not take into account your own objectives, financial situation or needs. Author, his company his associates, his directors, his staff, his consultants, and his advisors do not accept liability for any loss or damage, including without limitation, any loss, which may arise directly or indirectly from the use of or reliance on the information provided.