Challenges come to us from many directions and I received one of my greatest coaching challenges to date this past weekend. Let me share an overview of a conversation with a client:
He stated that he had a good business but his services are only needed every 3 to 6 years by a client. In other words, he is constantly in a marketing posture for new prospects. My reply was, every business should be in that “marketing mode” and that is normal business procedure. Then came the “zinger” I was asked to help him establish a reliable, constant stream of income that was not subjected to the ups and downs his business has always experienced.
I spent the weekend carrying a notepad and trying to list as many businesses that have such cash flow and also of opportunities that can create a constant cash flow. I asked myself “Is this something can be created for any business?”
Much to my surprise, the list turned out to be rather long; a few of the items that made my list were:
- Doctors that are offering concierge services.
- Subscription to monthly, value based newsletters
- Some industry specific residual income like insurance, alarm monitoring, etc.
- Membership in a beneficial business or trade association
- Priority service available for a monthly fee
- Price stabilization for goods/services with annual subscription
These are a summary of the most common residual income possibilities that can be applied to a variety of businesses. I answered my own question; Yes, residual income is a possibility for most businesses. The caveat is that there has to be a new marketing approach once the method is selected and the benefits to clients are determined. Benefits can be defined in a variety of ways, including convenience, cost savings, security, dependability and ego.
Any business would like to have their base expenses “guaranteed” and then the rest of their billing enhances their bottom line. The development of such an income base is going to take a lot of hard work and some “out of the box” marketing approaches.
For my part, I am going to continue growing my list of how to make this a reality. I have e-mailed my support group and asked for ideas and am asking you, my readers to send in your thoughts. (E-mail to firstname.lastname@example.org).
Yes, I will call my client this week and start working on his specific solution to creating a residual income for his firm.
My business is to help you grow your business by providing the needed support and accountability to achieve success.
Nick J. Petra CFP www.strategicduck.com reach Nick for a free consultation at email@example.com