Business Models 101: Revenue Streams
In this part we will discuss the Revenue Stream, where will your income come from.
I have to repeat it on every page but starting something on your own, creating value for you, your family and the world is a totally recommendable thing to do. You want to create your company. This is GREAT. The world has been made by people like you. Entrepreneurs. Self-Made Men, Creators, Builders people that believed an obstacle is just another great challenge to overcome, to solve and put behind them as an achievement.
The Revenue Stream
It would seem obvious that revenue or income is coming from your customers. This is nowadays an incorrect assumption. As mentioned before, you might have customers or visitors or users that do not pay anything for the services you provide.
Your revenues can come different sources like advertisement, and sponsoring. But this is of course not true for all the businesses far from it. This applies to Internet site, online services for example.
If you sell cupcakes, your main revenue stream will be from the sales of cupcake or from your franchise business which has become a huge success. The important here is to list properly all the revenue streams in order to be able later to define actions related to them. Here we have direct sales, indirect sales from restaurants and bakeries, online sales and franchising commissions. This is already quite a lot for such a small business.