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Friday, 18 April 2008 |
By Stephen Campbell
Having multiple income streams in a business basically implies that, the business is organized in such a way that there is revenue generation from different sources. Revenue generated at various points flows into the business model thereby creating greater value. Oftentimes, this is possible after the mother business matures and gives the raw material to set up another revenue generation model.
But, it is possible to set up a business in a way that the model generates multiple streams of income straight away. Most businesses or business men set up multiple revenue streams as a method of ensuring their financial security. Once the multiple revenue streams are stable they are a source of security and a ideal investment for the future.
Setting It Up
It is not that easy to set it up though. But, it is a weapon to defend oneself from the 'famine effect' of the corporate world. The famine effect is when there is only one income stream in your business. If for some reason, it fails to make income then there is no output in the business. The money stream flows dry thereby creating a 'famine' like situation. On |
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Last Updated ( Friday, 18 April 2008 )
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