Adding a new business offering is a path to supplementary revenue, but it also comes with costs that may be unforeseen. Innovations and improvements are often derailed by hidden costs. Quick adjustments then demand your attention to avoid losses from a new project. Don’t attempt the impossibility of changing tires while the vehicle is traveling down the freeway. Instead, better planning will make your operation function like an efficient NASCAR pit crew.
Increasing income by introduction of a new service or extra feature only materializes after upfront cash outlays. Fresh ventures don’t succeed by relying on momentum from your past successes. Rather, each project requires its own set of calibrations. Create a timeline of necessary expenditures. A new offering to customers calls for changes to your website, printed materials, and advertising copy. You could need new types of supplies or special products. Perhaps some extra training or certification is necessary.
Unexpected costs are experienced from just about any new commercial offering by practically any type of business. Even a solo operation that doesn’t add employees to accomplish new services or features still finds the need to hire outside assistance for nonrecurring steps to implement a change. Create a budget for these project-specific costs and track them. The result is often a surprising under-budgeting because little things arise that you didn’t consider or that cost more than you realized. After some experience in these matters, you’ll learn to anticipate every cost and budget for hidden extras. The result is better planning for profitability from launching new initiatives in the future.
The Finance Writer 