Establish Stability: The Trifecta Business Model
As a business owner, you know there are different revenue streams that are generally made up of either recurring revenue, transaction-based revenue, project revenue, or service revenue. Your company probably has one (maybe two) of these revenue streams. The majority of small businesses operate with one revenue stream.
Traditionally, business owners find one area, service or product where they are exceptionally trained or talented and focus on that singularly.
Does this make you feel nervous? Unsettled? It should. As we’ve seen this year, things can change quickly. Who could have predicted a global pandemic, an international human rights movement, and an upcoming election all in one year - and we’re only halfway through it!
Here are some rhetorical questions:
What happened to your business when society shifted?
What will happen if a competitor does your job better, faster or cheaper?
What happens if the service or product you were selling becomes obsolete?
Regardless of your answers…I’m willing to bet you have experienced the entrepreneurial stomach flip. That moment of fear and uncertainty when the future is unclear. When there are forces outside your control driving the fate of your company.
The Answer.
Every entrepreneur should build a Trifecta Business Model – three completely independent businesses!
It’s not about multiple revenue streams inside one company (although it’s a nice bonus if you can pair services, product, subscription, or licensing fees together). The Trifecta Business Model is about owning multiple businesses. This builds financial security and higher levels of overall success.
A Shark Tank Example.
There is a core group of six sharks (Mark Cuban, Robert Herjavec, Barbara Corcoran, Lori Greiner, Daymond John, and Kevin O'Leary), who are famous entrepreneurs. They each own many more than three companies, but they each had to get started with that first one. If they can do it, then you can do it too!
What’s next?
Don’t feel overwhelmed. Just start at the beginning. Get that first business life cycle started. Remember every business goes through these phases: launch, survival, success, growth, maturity, and decline. Once your first business reaches survival or success mode then it’s time to launch your second business.
Once you reach three successful businesses, I challenge you to keep going! Build your empire to meet goals that are important to you. Whether it’s monetary, lifestyle, freedom, peace, philanthropy, or service to others. We all have unlimited potential. We’re cheering you on!