Grow Money- Fast!

Strategies to Build Revenue in Start-Up Businesses
Written by Laura Furtado

April 10, 2013.

On April 15th, I had to pleasure to chat at the Women in Business conference at the Hyatt in Toronto.  I sat on the panel that discussed ways on how an entrepreneur can make money- and fast!

Starting up a business is no easy task.  It requires determination, hard work, consistency and a creative mind to determine how your business will grow.  Though stressful and a bit overwhelming, the start-up phase is exciting because you start to fulfill your dream in having a career you truly desire.  Time freedom, doing what you love and the potential to earn a higher income (vs. being employed) are some of the main reasons why women start the path of entrepreneurship.

However, the true challenge lies in setting up a business that makes money; more specifically, sustainable revenue.   If your business, which is tied to your “passion,” doesn’t generate revenue, it solely becomes a “hobby.”  In order to convert your passion into a true “business,” you must establish a revenue-generating model and determine HOW your company and brand will generate the green.  Most start-ups fail within the first three years of establishment, based on this fact alone.  However, there are strategies that you should consider, to help you generate money in the early years of start-up.

Here are five concepts that I implemented in my business:

1. Create passive income: 90% of employees earn “linear” income.  Meaning, your time, expertise and efforts are directly tied to your revenue.  If you want to make more money, you need to work more hours.  The challenge with start-ups is because you are strapped for cash, you try to work harder which can eventually lead to fatigue.  You cannot build a business under these conditions.

Finding a strategic way to build passive income in your business is key.  Passion income is an income received on a regular basis, with little effort required to maintain it.  When your business is making residuals, you have more time to focus on “building” your business further.  Some examples of passive income include licensee fees, membership fees, royalties or commissions

2. Leverage: is utilizing resources to increase a potential return.  In a start-up, you can “leverage” other categories other than money, such as expertise, marketing reach, distribution, etc.  In this situation, an entrepreneur has the ability to work with other people or companies, that have resources that you need, and vice versa.  The important thing to realize with leverage is to determine what you need help with and what “value” you will provide others.  Leverage works when a “win-win” relationship is created, so be very clear of your value proposition before approaching others with an opportunity.

3. Go Digital: with our digital age, it is extremely easy for a local business to go global, by going digital with their product offerings.  Creating digital products and “packaging” your expertise, is a quick and easy way you can earn money from work and time generated only once.  Many companies are able to conduct business entirely online, which can be desirable as it eliminates high over-head costs.  Some examples of digital products include video tutorials, presentation downloads, online courses, e-Books and video seminars.

4. Partner with Success: Creating strategic partnership with successful individuals or brands, especially in the beginning, is an excellent way to get ahead in the game.  By creating effective alliances with other like-minded companies, you have the opportunity to learn from success, generate knowledge and start build goodwill.  However, challenges may arise if there are unclear roles and responsibilities among parties, so ensure that you outline job descriptions and the intent, right in the beginning.

5. Build on Purpose: I truly believe that you get back what you put out in the world.  Building a business that serves a “purpose” in society and helps foster a community, are those that have longevity.  By incorporating gratitude and contribution in your business model, you help ensure that your efforts go un-noticed.  Working with outside organizations and sharing your passion with those less fortunate is crucial at making a mark in your industry.

Overall, if you are able to understand and apply the concepts of leverage, duplication and contribution, you are on your way to financial success.

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