Business & Personal Accounting Solutions, Corp. present: Ask The Accountant Podcast: Cultivating Multiple Streams of Income Episode 82020.
What is the best way to create multiple streams of income? Can we create a process that will benefit us and the client/customer? Multiple streams are important to consider when building out your pricing plan.
I certainly believe that we need multiple income streams, but how we go about this process is key. People make the mistake of trying to start too many streams of income at once. Simply throwing seed everywhere and when something anything came up, they abandoned what they were working on or what they had promised to others to work on this little reflection of income. Many of them see someone else making money in their fields and try to get into that field, and many labels this as being diverse. Yet when it comes time to pay the bills from the first business, many cannot pay the bills or their people.
Yes, I have watch people that make over $50k a month avoid paying bills because they cannot account for cost and expenses. Many of them are juggling money to pay the smallest of fees. Many also try to get free labor because they feel it is alright for them to do things for free. If you follow these practices, you will not be able to grow your business. Pick one field that you know you are talented and gifted at doing. Next, decide on the services or products you can afford to offer. Business owners have a cost first. We don’t just earn money without investment. Business investments consist of time or money, and in most cases, both. Many think someone that is making money in a field they have cultivated for years just earned money the next day, but a real business owner knows it takes time and money to earn a profit. Profit is different from sales.
We need to know what our bottom line is in business. What will it cost to offer that service, and what do you need to charge to cover the cost per job? How many and how much in sales do you need to receive to cover the cost of doing business? Avoid the pitfall of seeing money come in but missing what that person may owe (liability) or what it may cost them to earn the money you think you see.
Learn more about "Building Fair and Profitable Pricing Plans" the course is available on my website: https://bpaccountingsolutions.com/creating-a-fair-pricing-plan/course/4-financial-management/28-creating-a-fair-pricing-plan