When it comes to surviving in business, you’ve got to diversify. The old saying that variety is the spice of life holds in this realm. The more streams of income you have, the more likely you can survive a crisis. Here are some handy tips on how you can diversify your income to ensure plenty of money.
First, Protect All of Your New Investments
There are many common terms that you need to know as a business owner. This is all the more true when it comes to protecting your income. You can use a wide variety of arrangements to ensure that this is always the case. For example, a Delaware statutory trust will defer the capital gains taxes you pay on investments.
This will be the arrangement you can use to ensure that you can safely invest in a new property or series of other holdings. It will be all the more useful if you intend to use this property as a source of income via a rental arrangement. The DST is a handy tool to help you diversify your portfolio.
Invest in Different Types of Assets
The first thing you should be aware of is that it’s always wise to invest in different assets. This way, all of your eggs won’t be stuck in a single basket if a particular industry goes into a decline. For example, do you mainly invest in real estate? It would be best if you were doing so in a wide number of different properties.
For example, it’s not a good idea to invest only in residential real estate. It would be best if you also thought about owning several properties of a commercial nature. These could be offices that you lease out, shopping centers, etc. At the same time, if you buy homes to flip, you should also think about rental properties.
Meanwhile, you should also be applying the same principle to a wide range of stock market investments that you may care to make. It’s a good idea to have a mix of stocks and bonds that reflect many different industry sectors. A healthy selection of stock options will keep your income rolling steadily in.
Don’t Rely Solely on Your Physical Sales
Believe it or not, many business owners still don’t know how to properly use the world wide web when it comes to sales. You may have an official site set up for your business. But are you making the most of it? Unfortunately, too many business owners seem to think of it only as a way to advertise their physical location.
You should know that one of the best ways to diversify your income stream is to make your site a place to reel in additional sales. So even if you do your primary business from your brick-and-mortar store, your site can bring in even more income. In the end, you may even be able to move to the web completely, thus cutting out your physical overhead.
Offer a New Series of Online Courses
How often do you think of yourself as an expert in your chosen profession? The truth of the matter is that you very likely have a set of skills that others may envy. Add to this the knowledge, qualifications, and experience that you have gained over the years. These are skills that others would be happy to acquire.
One of the best things that you can do to diversify your income stream will be to offer a new set of online courses. These are courses that will be based on the skills that you possess. For a small fee, you can pass on your knowledge and experience. You may soon find an audience that is very willing to pay for what you know.
Make an Effort to Broaden Your Horizons
It all comes down to having the foresight to make a number of astute choices. This is the mark of a truly progressive investor. You need to be able to make investments that will give you a wide number of income streams. The more you can diversify your holdings, the more success you will have as a long-term investor.