Owning and operating a small business is challenging. It starts with an idea, a plan and then implementation. Eventually the sales start rolling in and slowly but surely you are counting your money and hopefully bringing in more than what is going out.
I learned early on to break down my business sectors in much the same way an NFL Coach breaks down his football team into three parts; offense, defense and special teams. Every business is unique. How do you breakdown your business sectors?
When I ran DIG Landscaping & Lawncare in my twenties our business segments were landscaping and lawncare. The lawncare side of the business was the steady paycheck and drove landscaping sales. At VIP Seats, I was able to identify our business sectors early on and they are wholesale, retail and travel agents/concierge services. In my mind, we have three smaller businesses driving revenues under the VIP Seats umbrella.Roblox HackBigo Live Beans HackYUGIOH DUEL LINKS HACKPokemon Duel HackRoblox HackPixel Gun 3d HackGrowtopia HackClash Royale Hackmy cafe recipes stories hackMobile Legends HackMobile Strike Hack
As your industry and business climate changes and evolves it’s important to keep a balance. It can be critical to the long-term health of your organization to spread out your revenue streams whenever possible. Are the majority of your sales derived from a handful of clients or one major client? Of course your company would be in a better situation doing business with several clients than having to rely on one major client.
There are several instances at VIP Seats where we have felt uneasy about our revenue streams. I watch the revenue streams gross sales percentage numbers very closely. Our optimal goal to keeping a healthy VIP Seats is to have 33% of sales generated out of each of our business sectors of wholesale, retail and travel agent/concierge business. When we first started VIP Seats 100% of our sales were all derived from buying event tickets and reselling them. This placed a strain on our cash flow and we risked huge amounts of capital to make profits. So we stepped up our marketing efforts online and to travel agents and concierge clients.
Even as I’m typing this I am concerned about a significant portion of our wholesales business being derived from the Chicago Blackhawks. What happens if the Blackhawks raise prices, confiscate our inventory, or the team’s performance falls on the ice? It’s time to find new wholesale investments so we can spread our eggs out rather than leaving them in our Blackhawks basket.
What are your key numbers in your small business? Break the numbers down! Balance in any business is the key to survival.