The founder leveraged her certified production space to create honey for other brands. This “white labeling” service, born from custom corporate orders, provides a consistent, secondary revenue stream to cover fixed costs like rent, de-risking her primary business.
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Instead of starting in a kitchen, CPG entrepreneur Emma Hernan bought a manufacturing facility first. This generated revenue by co-packing for other brands, secured her own supply chain, and created multiple income streams from a single asset before her product even launched.
Instead of choosing between going all-in or shutting down a struggling business, consider a hybrid approach. The founder can return to a full-time job for financial stability, turning the venture into a side hustle. This reduces pressure while allowing them to use targeted, low-cost marketing to rebuild demand and potentially scale back up later.
Relying solely on a time-for-money service model is precarious, as a personal crisis can halt all income. Entrepreneurs in service industries should conceptualize passive income streams from day one, even before implementation. This builds resilience and provides options when they can no longer trade time for money.
Faced with fluctuating consumer demand, Taza diversified into B2B services like co-manufacturing and private label. This strategy kept their factory machinery utilized and staff employed, creating a stable operational and financial foundation that de-risked their more volatile branded business.
To create another stable revenue stream ahead of her maternity leave, the founder informally rented a small part of her production facility to another entrepreneur. This person works off-hours, providing a no-conflict way to help cover rent and reduce financial stress.
To bootstrap her company, the founder rented out her spare bedroom on Airbnb. This income covered her mortgage, freeing up 100% of business revenue for reinvestment. As a bonus, guests often became temporary helpers and early brand evangelists.
Don't underestimate small revenue streams like affiliate commissions. Because they are often pure profit, they go directly to the bottom line and can have a disproportionately large, life-changing impact on a small business owner's personal income.
Brent Ridge, who started his business during the 2008 recession, advises founders in today's chaotic economy to mitigate risk. He suggests either having a partner with a stable career or maintaining a side job to ensure a steady income while launching the new venture, countering the 'all-in' mentality.
Boom Supersonic's move to power data centers with its engines isn't a failure, but a strategic way to fund its capital-intensive vision. This mirrors early Tesla's survival tactic of doing contract engineering for other automakers. Such projects can be a crucial source of non-dilutive capital for deep tech companies.
The founder realized her premium honey sold better in gift and souvenir shops where brand story matters more than price. This was more profitable and a better brand fit than traditional grocery stores with their high margins and unfavorable terms.