Diversification of revenue streams occurs when a business develops a new product or service or expands into a new market, something that is sorely needed in the Covid economy.
“Often, businesses diversify to manage risk by minimising potential harm to the salon business during economic upheavals,” explains international beauty business expert, Liz McKeon.
She continues: “The basic idea is to expand into a business activity that doesn’t negatively react to the same economic downturns as your current business activity. If one of your revenue streams is taking a hit in the market, one of your other divisions will help offset the losses and keep the company viable.”
To read McKeon’s tips on how to diversify your salon’s revenue streams click here