This is why you need multiple income streams
Maybe you are waiting for your long-term business to start making an income? Maybe you have two businesses you love doing and don’t want to give up on either? Maybe your businesses just escalated?! But in actual fact, it can be a good idea to have multiple income streams.
I have several businesses. As well as running The Female Entrepreneur Hub, I’m also a freelance writer (Lancashire Freelancer) and I run an Etsy business with my sister (Blossom and Oak). As you can imagine this takes some juggling, especially with a 4-year-old son and an 11-year-old daughter! Why do I do it? The Etsy business is just a small side income, however, it’s taught me a lot and I love running it with my sister. I also adore making the clothes for babies, so I find it really fun. I write as I enjoy the research and the writing and it’s a useful and high paid income stream. Then I have The Female Entrepreneur Hub which is my passion! I do it for the love more than the money, but I’d love it to be my long-term business and plan to launch products and services through the website!
The argument for multiple income streams
Multiple income streams mean multiple sources of money coming into your bank. This can mean even if once income drops you still have the other income streams, so whilst it’s less, you do at least still have some income! Clearly, this is better than no income!
Chances are each business isn’t a full-time business, as if you are juggling a few businesses, your time is clearly split. This can be a good thing as you can push any of your businesses when you see the potential. You could take on someone to help, you could simply dedicate more time, but either way, you can invest in the business more to create more income.
The argument against multiple income streams
The problem with having multiple businesses is there is likely to be a lot of work and you will feel split and pulled between each business. You need to be really mindful and organised to keep on top of everyday tasks. Making sure each business has a schedule that works with the others is essential.
You may feel so spread that you don’t give your best to each business. It would be better to manage two businesses that you can give 90% to each, rather than 5 businesses that you only give 40% to as any business that isn’t tended to is likely to flounder.
If you are employed and run a self-employed business as well, tax can be slightly more complicated and you’ll need to be aware of how much of your allowance you have used.
Passive income is really key in this. If you can build a business that generates passive income it allows you time to work on other ventures. Passive income is where the business generates income without you really having to do too much. For example, you may have created an e-book or course. This may have taken you 1 month, but then that product sells for the next 2 years. You don’t have to do anything as your system is automated through a program such as MailChimp. The customer signs up via email, they pay via a payment system (such as PayPal) and MailChimp will automatically send the e-book for you. Other than the original creation you get to sit back and earn money whilst you sleep or holiday!
You sell 100 courses (about 2 per week), each course retails at £200 = £20,000!!
And that’s just one income stream. Add multiple courses and affiliate marketing into this and you’re looking at maybe 5 times this income!
In conclusion, multiple income streams can be a very good idea, just ensure it doesn’t get too much and the businesses begin to fail and your health becomes impacted.
If you would like to know what resources could help you manage multiple businesses, get a free copy of my 25 resources that will help you manage several businesses (and the resources are mostly free!). Get your copy here!
I love to speak to readers about their experiences, get in touch if you have any questions about starting or running a business!