Having access to more than one source of income protects your business, encourages growth and deepens the customer relationship.
Buying a franchise is a major investment, and seasoned investors know that diversifying is a proven strategy for long term success. It all comes down to the old adage ‘don't put all your eggs in one basket'. The same principle applies in business – having a range of revenue streams can protect your cash flow in tough times and provide greater opportunities for growth and expansion.
Diversifying fuels growth
Many of the world's most successful businesses have been able to fast track their growth and consolidate their gains even during periods of market weakness by tapping into different revenue streams.
Tech giant Apple for example, doesn't just sell hardware. It also sells music and apps through iTunes, and has a software and services business. LinkedIn doesn't only rely on revenue from talent solutions; it also provides marketing and premium subscription products.
Despite the clear benefits of having multiple – and diverse – revenue streams, small businesses owners focus on a particular service or product out of concerns about spreading themselves too thinly or neglecting their core business. After all, conventional wisdom warns us of the dangers of becoming a jack-of-all-trades rather than mastering a particular skill.
The solution lies in having a range of revenue streams that remain relevant and complementary to your core customer base. We see this with Apple, where customers who purchase an iPod download music from iTunes.
Importantly, when your business has access to diverse income streams, you're not relying on just one product or market – something that can see the business struggle if that market cools. Along with protecting your business, diverse income streams also provide opportunities to meet more of your customers' needs, providing a deeper level of service and allowing you to develop a truly holistic relationship. This means your customers are far more likely to return to you for repeat business as well as recommending you to friends, family and work colleagues.
Mortgage Choice has diversified
Recognising the value of having multiple income sources, Mortgage Choice has diversified tremendously over the quarter of a century since the company was first established in 1992.
We started out helping Australians enjoy better access to a broad range of home loan options coupled with expert mortgage advice. But these days, Mortgage Choice offers considerably more. Today our franchisees provide a diverse range of products and services spanning:
- Investment loans
- Personal loans
- Car loans
- Credit cards
- Trade and equipment finance (we realise that many of our home loan customers are small business operators too)
- Personal risk protection products
- Real, relevant and results-driven financial advice.
Have we become a ‘jack-of-all-trades'? Not at all. Our core goal is – and has always been – to improve the financial wellbeing of our customers, and our suite of services reflects this. As a guide, for some Mortgage Choice customers, their journey with us begins when they step off the rental treadmill and into their first home. From here they may upgrade their loan to fund a better property further down the track, or they may turn to us to ensure they have the appropriate personal insurances in place to protect their lifestyle and family wellbeing. As the customer's journey evolves, they rely on us for financial planning advice to achieve personal goals including, ultimately, a rewarding retirement.
Look for opportunities with a range of income sources
The upshot is that when it comes to buying a franchise, it pays to consider whether the business model provides more than one income source thereby allowing you to grow your customer base or offer more to existing customers.
At Mortgage Choice we understand the value of having diverse revenue streams. It means greater opportunities for Mortgage Choice franchisees to grow and protect their business – even in unpredictable operating environments.
Discover more about the opportunities offered by a Mortgage Choice franchise or call us on 1300 650 330 for further details.