Finding new sources of income in a company can be the difference between perishing or surviving the market in the mid and long term. All business leaders are aware of this, but knowing where to start is not always so obvious.

At Corporate Lab we are experts in precisely this: our venture studio helps large companies to innovate with their business models and sources of income. This is why today we tell you in detail how to find new sources of income for your company so that it always remains in the forefront of the market.

Why is it interesting to look for new sources of income?

In a constantly changing market, the trend in recent years is not to cease in the effort to find new sources of income for the company. The purpose of this is simple: putting the eggs in different baskets ensures a much healthier financial situation, as well as ensuring that in the mid and long term the company can count on its different cards.

Sources such as McKinsey's annual research on new-business building reveal that the vast majority of business leaders are concerned with building businesses that will keep their companies afloat.

Respondents to this study say that finding new sources of revenue is one of the highest priorities for business leaders, who say that these new businesses bring double the profits from their core business. In addition, companies are already creating 1.5 new businesses a year on average, a figure that will continue to increase until reaching 3.5 new businesses in 2023.

As you can see, looking for new sources of income is a trend that is increasingly followed by companies from all over the world, from all sectors, and of all sizes.

5 ways to find new sources of income in your company

There are many ways to find new sources of income. These are some of them:

1. Product innovation, or expand your products and services

Your company may already be successful with its current line of products and services, but this does not mean that it cannot innovate in this regard. Quite the contrary, exploring new product lines can help you maintain your leadership position, attract new customers, and increase your revenue streams.

2. Lateral innovation, or diversify your market

Lateral innovation consists of bringing the same concept to other markets, replicating the product or service but moving it to another place, both literally and figuratively. This means that you can move your product to a new geographic market, to a sector that is similar to the current one, or to a different target. For example, transitioning from business to business (B2B) to business to client (B2C), something we mastered at Corporate Lab after doing it with one of our startups, Surippa.

This is another valid option to obtain new sources of income in your company, since you will be able to access a totally new audience. In addition, it is a way to reduce risks for your company, since you will not depend solely on your own market.

3. Channel innovation, or digitalize your sector

Although digital transformation may sound old, the truth is there are lots of sectors to be digitized. Increasing distribution channels in general and moving to the digital sector in particular can be key to increasing your company's sources of income, but also to disrupt your sector and become a leader player on innovation.

If your business doesn't yet have an online presence, consider selling your products or services through an eCommerce platform. Better yet, think of new products or transactions that can be carried out only in this channel. This is what we did at Corporate Lab when we launched Equipzilla, a startup that is digitalizing the rental machinery sector. This can help you reach a larger audience and increase your revenue.

4. Open innovation, or finding strategic alliances

Looking for other players in the sector to collaborate with is beneficial for everyone. Open innovation is in full swing because it is a win-win solution for all parties involved. In addition, it offers endless possibilities: you can choose to look for partnerships, programs with startups, hackathons... The options are endless and, depending on your type of company, you will surely find the one that will provide you with new sources of income for your company.

5. Disruptive innovation, or creating new business models

While the previous suggestions have more to do with exploring new possibilities with the product or service you already have, this type of innovation is radically different. Disruptive innovation consists of finding new business models for your company, which may be more or less related to the current one.

This is the most difficult type of innovation to execute and also the most interesting, since it is the one with the greatest return potential.

For this type of innovation, it is common to get help from external services, such as a venture studio. Venture studios such as Corporate Lab can take full charge of the entire process of establishing a new business model: from the identification of the idea and the validation of the business, through the development of the entire company and its marketing actions, to looking for the team that will lead it once it is an independent company.

If this is also your case and you want to find a new business model for your company, contact our team.

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