What your team knows that you're ignoring

Don't Add Revenue Streams. Leverage What You Built.

This week, I saw two things happen: One of our portfolio businesses grew their events business line by 5x compared to July last year - no typo here, I did mean five times. Meanwhile, an indirect competitor business we have in our radar just sent an email asking their customers for advice to get more sales as they were struggling to stay in business.

I'll take a step back and tell you why we took special attention to this competitor business - for easy reference, we'll call the business "Summer's". Summer's is led by a dedicated business owner who got a great start in her home city running events. Seemingly, it was a stable, profitable business. They have a decent website, you can book your tickets online - e-commerce is always a good sign - and there is social validation with a few hundred reviews. Over five years in business, another indicator that the business might be on a good direction. Plus, the owner seemed to be tech-savvy enough to manage his own newsletter. For us, these were good indicators, and potentially it would become an interesting opportunity for a partnership.

On a quick look, Summer's was looking great! What happened?

Summer's business owner invested all his effort on a single business line. It seemed to work for some time, but clearly the business wasn't making enough to sustain that model alone.

Over the last five years, businesses have experienced increased volatility: inflation, understaffing, higher interest rates, and ultimately the "great" tariffs. It didn't get any easier to stay afloat.

I shared Summer's news with our portfolio company, and her response was something like: "Don't put all your eggs in one basket." Although we've heard this phrase a million times, I think it's a particularly hard lesson to learn for established business owners who've built something successful.

Here's the thing about diversification that most consultants get wrong: They tell you to "add revenue streams" without understanding that you've already built a reputation, systems, and customer relationships around what you do best.

You don't need to reinvent your business. You need to leverage what you've already built.

Every business starts with a product or service offering - professional services, gourmet foods, catering, roasted coffee, laundromat, you name it. Each of these businesses has the potential to multiply their revenues by diversifying strategically, not randomly.

If you're reading this and thinking "I've been stuck at the same revenue level for years despite having a solid business," you're not alone. Many of our most successful partners came to us in exactly that position.

The breakthrough isn't adding more things to your plate. The breakthrough is identifying what your existing customers already want from you that you're not providing.

Here's what I want you to do this week - and I mean actually do, not just think about:

Sit down with your most experienced team members and ask them: "What are our customers constantly asking for that we keep saying no to?" Your team has been listening to customer requests, complaints, and wishes day in and day out. They know what opportunities you're missing.

But here's the crucial part that separates this from consultant homework: You're going to test one idea within 30 days with less than $500 invested.

Not a business plan. Not a feasibility study. An actual test.

If you run a catering business, maybe it's offering meal prep services using your existing kitchen during slow periods. If you run a retail shop, maybe it's adding an online component for your most popular items. If you provide professional services, maybe it's creating a self-serve version of your most basic offering.

The goal isn't perfection. The goal is data. Real customer behavior. Real revenue.

Once you have that data - and only then - you can decide whether to feed it more resources or try something else.

This isn't about working more hours. This is about working the same hours more strategically. About building systems that generate revenue even when you're not personally delivering every single thing.

Here's what I've learned after working with dozens of business owners: The businesses that survive and thrive are the ones that build multiple ways to serve their customers, not just multiple ways to stay busy.

What's the one thing your customers keep asking for that you've been saying no to? You probably already know what it is. It's been sitting in the back of your mind, hasn't it? That's your first test

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