Businesses don’t make money with core business alone. Larger businesses often have additional streams of revenue that flow into profits. Here are several ways that your business, too, can make extra income without creating and distributing new products:
Real Estate Investments
Real estate investments are mostly handled by individual investors. However, it’s not a field completely shut out to business players as well. Major corporations, for example, do invest heavily in real estate. The land may be leased out and later used for company business. For example, companies like Apple maintain large swatches of land in the U.S. Some of this real estate gets converted to resources useful for the functioning of the company, such as solar farms. Otherwise, a fat real estate portfolio could generate substantial passive income for businesses in addition to sales revenue.
Telco can be a major new source of income for small to medium-sized businesses, especially those in the IT sector. It’s very possible to distinguish your company’s brand or business by offering telecom wholesale services to customers or business clients. Businesses won’t be limited to offering just mobile or landline services either. There are excellent service providers that purchase directly from carriers and make these services available to customers via a single, efficient platform. A variety of telco products could significantly strengthen your company business and attract new target audiences. The new products would also expand your brand’s core audience as well.
Buy Out Related Product Companies
Offering products related to core business is a commonly utilized way of making additional revenue for businesses. Designing related products in-house can be a challenge for many businesses. Companies can quickly start making profits by purchasing another business that offers related products. A major example of this tactic is Facebook’s purchase of Instagram. When the famous social media company initially bought Instagram, many insiders were sceptical of the purchase. After all, doesn’t Facebook have a feature that lets users upload pictures like on Instagram? As we all now know, Instagram perfectly complemented the social connections Facebook facilitated. Facebook has since partially connected Instagram to the social network, but the photo sharing app still functions on its own. Thanks to this integration, Instagram is now more popular than former rival Twitter. Facebook is earning immensely with the platform, while effectively not facing a photo sharing threat.
Sell Data-Related Services
Most modern businesses accumulate more data than the company can make use of. If the business gathers troves of non-personal data, then it’s possible to sell or lease the data to researchers, other companies, or statisticians. Data would have to be anonymous, of course. It’s a service that will be beneficial to both parties involves.
Lease Company Resources
Does the business have extra office space, valuable artwork, or server space that is largely unused? Such resources can be leased out to make a passive monthly income that adds to the existing revenue streams. Company resources that are used only periodically or seasonally can be made available for leasing.
If your business can tap into one of the above sources of revenue, then your company will have more money to invest, expand, and perfect core business products.