One of the most difficult goals to achieve within the world of business is finding a delicate balance between expenditures and profits. Business owners throughout the United Kingdom are facing numerous obstacles and not the least of which is the fact that inflation rates have recently risen as high as 3.1 per cent. Thus, they are understandably concerned about what 2018 may bring and whether or not their current state of liquidity will prove to be sustainable from a medium-term point of view. How can entrepreneurs generate additional sources of income without spreading themselves too thin?
Understanding the principle of multiple income streams
Many experts believe that creating multiple streams of income can provide a greater sense of reliability when relying upon revenues generated from a single project. Even if one or two streams fail to produce, the remaining options could very well pick up the proverbial slack. These streams will naturally vary depending upon the scope of the business in question. For example, a telesales centre could begin an email marketing campaign in order to obtain new prospects while a retail firm may opt to offer discounts for those who purchase their products online.
Contracts for difference
A growing number of business owners are choosing to become involved in positions known as contracts for difference (CFDs). There are several advantages of trading CFDs when compared to traditional shares. For example, the average CFD offers a higher leverage than the majority of traditional trades and the individual does not have to physically own the asset in question in order to turn a profit. These positions tend to be defined by their short-term nature, so they can be excellent methods to generate an appreciable side income. CFD trading can be quite lucrative when executed correctly and with experience, losses can likewise be reduced.
Exploiting the power of social media
It is important to mention the influence that social media can have upon a business if it is utilised in the correct manner. In fact, studies have found that 81 per cent of shoppers will search for product reviews within popular social media platforms before making a purchase. It therefore makes a great deal of sense to employ social media as an additional facet to more traditional marketing campaigns. Another benefit of this alternative is that the costs associated with running a social media platform are minimal (if they exist at all). Thus, any additional revenue can be directly funnelled back into the core operations of the business.
Currency trading ventures
We will once again return to the world of online investing for the final suggestion. Currency (Forex) trades are the most liquid positions within the market today. Trades can be opened and closed in a matter of minutes and low entry levels are ideal for entrepreneurs who do not have a great deal of capital to spare. Having said this, it is prudent to mention that a greater level of liquidity could also be associated with more pronounced volatility. This is why potential traders should familiarise themselves with such an option in advance.
There is no need for a growing business to be limited by scant funds. Please keep these suggestions in mind, as they can produce impressive results.