Developing Revenue: How To Succeed In A Recession

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Developing Revenue: How To Succeed In A Recession

The period of global recession between 2008 and 2010 was a troubling one for U.S. businesses. It was an especially difficult period for small and independent ventures that lacked significant resources. According to recently released census data, 170,000 small businesses failed in the U.S. during this time. Although there were some financial blessings in 2010, many businesses have struggled to maintain a thriving and profitable enterprise since the financial crisis. While 6.82 million small businesses operated within the U.S. throughout 2009, this total had dropped to just 6.79 million by the end of the following year. This week, the Federal Reserve announced that it was still concerned about the sluggish recovery and slow growth rate being experienced by the U.S. economy.


Developing Revenue Streams: Key to Business Success in 2012
With these points in mind, small and independent businesses must be creative in their thinking and develop innovative ways of expanding in 2012. Creating new revenue streams is a good starting point for struggling commercial ventures, as it allows them to boost their turnover and maximize profitability.

Embrace a New Business Model
One issue that many small businesses face is the fact that they have rigid and outdated business models. The continual stream of innovation in technology and media has provided a constantly changing business landscape. The traditional publishing industry provides a relevant case in point. Established newspaper franchises have been forced to adapt their business models and embrace digital media subscriptions and online advertising as a way of diversifying their revenue streams. There are fears that this may not be enough, especially for small and independent publishers across the globe.

While the development of this strategy has seen the New York Times record increasing growth in revenue during the first half of the fiscal year, the majority of newspaper franchises in the U.S. and U.K. have recorded only modest returns through digital output. This has encouraged a far greater level of creative thinking within the industry, with a range of new concepts being discussed to expand the boundaries of print media. These include the development of a digital retail mall, in which newspapers connect their readers with merchants in exchange for a transaction fee.


Maximize Online Revenue Streams
Not only do the concepts being discussed as potential saviors of the traditional newspaper publishing industry highlight the need for creative thinking in business, but they also prove that the issues facing small businesses are global concerns. Just as newspaper franchises in the U.S. and U.K. have struggled in recent years, so too are small businesses in Australia experiencing diminished growth. This is primarily because of a reluctance to develop an online presence and create new revenue streams. Part of the issue is the false perception that creating a website and optimizing it is an extremely costly process, which has discouraged independent ventures from making a financial commitment.


Source:  http://www.investopedia.com/financial-edge/0812/developing-revenue-how-to-succeed-in-a-recession.aspx#ixzz4esGhXEV6