Income volatility is costly for organizations. Indeed, in any case, it is necessary to maintain the management apparatus, real estate and other idle resources. To solve the problem, new streams of income must be created.
Instructions
Step 1
Identify the boom and bust periods of your current source of income. Seasonal changes in demand may be the reason for the decline. Stationery is being sold more actively before the school year. Chocolates are best bought in winter. The demand for building materials increases from spring to autumn, etc.
Step 2
Count the number of projects needed to offset the downturns. If additional revenue streams can be created that generate cash flows during downturns, total project income will be stable throughout the year. It is necessary to select different types of goods / services so that there is no overlap of recessions in some month. Ideally, there will be synergies between all areas of activity. You can use some warehouse or office space and other resources, which will lead to lower costs.
Step 3
Find assistants within your organization who are responsible for new projects. We need leaders who can take new directions from scratch and, if necessary, replace each other. To achieve stability, many projects should not depend on one person. Build a system that works without your participation.
Step 4
Create a timetable for launching new lines of business. Pay attention to cash flow planning so that new projects receive funding on time. Otherwise, the idea will not be realized.
Step 5
Monitor key metrics to avoid critical discrepancies. In case of successful implementation of the plan drawn up in the fourth step, recessions and rises in profitability from different types of activities will overlap. This will reduce the waste of resources on downtime, and the problem of stability will be solved.
