Finding out how to create multiple streams of income. As an entrepreneur, a big chunk of what goes through your mind while you work is money. Every move you make to improve your business always costs you, and you never want to be caught unprepared. While this is a common struggle all entrepreneurs must overcome, it doesn’t have to overwhelm you because there are ways to make it easier.
Why you should create multiple streams of income
Having multiple streams of income is important for any individual who wants financial security, but they’re especially crucial for entrepreneurs whose success can often depend on capital and financial stability.
The most obvious benefit of having several revenue streams is that you have a Plan B, C, and D to fall back on in case your business is going through a slow period or a major change. Additionally, taking charge of sourcing income in a variety of ways means that you get to learn other markets and methods. This is a unique advantage that can help you stay ahead of your competitors in the long run.
Of course, for most entrepreneurs, creating multiple streams of income or revenue is tantamount to creating their own peace of mind. Having a safety blanket may help you be more confident to pursue paths you would otherwise ignore, or take risks that would have been too much if not for your multiple streams of income.
How to go about producing multiple income streams
Thankfully, there are several options available for entrepreneurs looking for financial security these days. Read on to find out what types of revenue streams are ideal for you:
Passive Income: Finance writer Kimanzi Constable notes how passive income is essential for entrepreneurs who want the freedom to explore different facets of their business while still maintaining financial security. There are several ways you can generate passive income, which will only require some effort at the start. You can earn from ad revenue by running a blog, or receive royalties from books and training manuals. Another great option is to offer ad placements if you have property, or offer storage rentals for your customers.
Investments: There are better ways to go about handling the bulk of your savings than just sitting on it. For one thing, most experts will tell you to diversify your portfolio by investing in stocks. Since you are looking to add revenue streams but not actively trade, pick low-risk, long-term investments like real estate or gold. FXCM highlights gold’s lasting value in the face of international and economic turmoil as an excellent low-risk choice for anyone looking to diversify their portfolio in the safest way possible. In the same manner, real estate values tend to go up and is also a good investment depending on the company, property, and location.
Creative Funding: We talked about non-traditional funding in our article ‘10 Essential Pieces of Business Advice for African Entrepreneurs’ and how Africans with an entrepreneurial flair often have to be more creative when sourcing money. For instance, Inc. recommends selling assets or licensing, as well as franchising or bartering with other business owners. These will allow you to have a separate income stream outside of the funds you already have.
There is no right answer to how many streams of income you should ideally have, as it really depends on your own needs and your lifestyle. That being said, when you’ve reached a point where you’re not constantly trying to overcome financial hurdles, you can rest easier knowing you can truly focus on the things about your business that matter.
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Source Beauty is pushing the boundaries of Egyptian e-commerce
Egyptian e-commerce: the county’s digital drive has not yet gotten to the growth typically seen in European countries and North America. However, as businesses have started shifting online, customers are now following suit, resulting in the gradual development of the digital eco-system.
Innovation, such as digital marketing, is reinventing the consumers’ path to purchase. The Egyptian e-commerce market is expected to grow at a rate of 33% annually to approximately $3bn by 2022, according to Oxford Business Group.
Source Beauty and disruption
The increase in e-commerce comes from rising internet penetration rates, driven by connected and digitally savvy millennials. Several platforms, both locally and internationally, such as the direct-to-consumer beauty platform Source Beauty, have disrupted the beauty industry in the region to drive their growth by truly connecting with their customers.
By being aware of the changing consumer behaviour trends in the e-commerce landscape, service providers like Source Beauty are continually fostering customer engagement with a community they have created. The customer service team, along with the editorial and marketing teams, respond to each comment and direct message, making customers feel listened to.
Lydia Schoonderbeek, the founder and CEO of Source Beauty, said:
“Egypt has traditionally been a price-driven market. After devaluation and high inflation rates, people have become much more price sensitive. People are consuming less and are shifting away from imported products due to price, accessibility and inconsistency in supply. As a result, they’re looking for local alternatives.”
In line with its digital transformation and financial inclusion agenda, the Egyptian government has set in place directives to raise the limit for electronic payments for individuals via mobile phones to EGP30,000 (USD1,905) per day, and EGP100,000 (USD6,350) per month, since March 2020. Traditionally, 70% of online purchases were cash on delivery, which has proven to be a major challenge to e-commerce growth throughout the region. This preference has changed to credit card payments, increasing to 30% from 16% due to the spread of Covid-19, but it remains to be seen whether purchasing behaviors will be affected in the long term.
The CEO of Source Beauty further added that, the company had seen substantial growth thanks to the COVID-19 global pandemic, with existing and new customers wanting to limit in-person beauty services and adhering to social distancing and mask-wearing requirements. Beauty customers, she says were changing spending habits, moving towards products that allow them to recreate the salon experience in their homes and protect them from the potential impact of an increasingly digital lifestyle. Finally, she believes they have seen customers prioritising skincare and haircare purchases over makeup.
The question is, ‘Is anyone in Egypt going to buy beauty products online?’. Who thought people would buy books on the internet from a website called Amazon! Well, the answer seems to be YES. Consumer spending in Egypt on non-essential goods has reached EGP 3.90bn in 2020 and is set to reach 8.81bn in 2021, according to FitchSolution’s 2021 Report.
According to the Egyptian e-commerce beauty company, Source Beauty, it believes that the world is in an era where consumers are looking to associate with brands and not products, to make their beauty purchasing decisions and this is where homegrown brands like theirs will doubtlessly lead to economic growth in Egypt.
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