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Why Entrepreneurs Should Have Multiple Streams of Income

multiple streams of income

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.

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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

multiple streams of income
Generating multiple streams of income should worth your while

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 IncomeFinance 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.

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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.

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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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3 Comments

3 Comments

  1. Pingback: 7 Principles for Fresh Graduates from African Universities

  2. I go through your article carefully. I find it very informative and interesting. Thanks for sharing.

  3. Such a helpful content you have provided! I read this and I understood why entrepreneurs need to earn from multiple streams. As you have written about if plan A fails then B and C and D come in the scenario. So, earning from different sources will help in critical times in the future. I liked one of the ways you have described, I liked “Investments”. Investments may go fail sometimes, but it gives the highest ROI on capitals.

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ARTICLES

How to Gain Self-confidence as a Professional Trader

Confidence is one of the key ingredients which will allow you to trade the market like a pro trader. If you wish to build your career in the investment world, we strongly recommend that you learn to take the trades with strong confidence. It might take a while to get used to the overall concept of trading but once you become good at analyzing the market data, you can build your confidence level. But developing your skill in the retail trading industry is not that easy. You have to follow some specific rules and only then you can expect to become a full-time trader.
In this article, we are going to give you some advanced tips which will allow you to trade the market with a high level of precision. Once you become good at following the tips mentioned in this article, you will never struggle in the ETF trading industry.

Forget about the past trades

The novice traders get biased with the losing trades. They keep on monitoring the market and repent of their mistakes. On the contrary, the professional traders take smart steps and without any repentance, they look for the next trade signals. If you wish to develop yourself as a professional trader, we strongly recommend that you forget about your past trades. You can’t undo your past. Instead, look for the next trade signals strategically and try to find the solutions to this market.

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Trade with long term goals

You must take the trades in the market with long-term goals. Without setting up long-term goals in the investment business, it is very hard to stay tuned with the market changes. View the website of Saxo and learn about the importance of having strong determination in the trading business. Unless you are determined with your actions, you will keep on losing money most of the time. So, follow a conservative way and systematically take the trades. Once you become good at evaluating the key direction of the market, you can easily change your life.

Analyze the high impact news

Learning about fundamental analysis will improve your decision-making skills to a great extent. Very few traders in the retail trading industry have the skills to evaluate the fundamental data in the market. If you want to survive in the retail market, you must learn to take your trades systematically. Forget the fact that you are know everything about this market. See how the news data changes the course of the trend. As you become skilled in analyzing high-impact news, you will slowly learn to take the trades with strong confidence. This will also make you a better trader and let you systematically trade this market.

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Create a trading routine

To build strong confidence in the trading profession, you should trade the market with a balanced trading routine. Unless you take your trades with a proper trading routine, it will be really hard to bring any positive change to your trading system. As a trader, you might be thinking that you know every bit of detail. But this is not all true. In your trading routine, you must define all the basic rules. If you don’t trade the market with predefined rules, it will be a big challenge to make bring changes to your trading system. Follow the basic rules and trade the market with long-term goals.

Trade with low risk

You should always trade the market with low risk. Once you start taking the trades with managed risk, it will become an easy task to develop self-confidence. The majority of novice traders don’t have the strong skills to deal with the complex market. Usually, they aggressively take the trades and they lose a significant portion of the trading capital. So, trade with only 2% risk in the trades and it will help you to build strong confidence at trading.

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