Welcome to another episode of “my husband just became an entrepreneur and I gave him this advice, so now it’s a podcast episode!” Let’s talk about creating runway revenue to build another business. It might be something you haven’t thought about before, and I'm giving you full permission to go ahead and do it.
Creating Runway Revenue to Build Another Business
Want to listen to the podcast version of this post? I’ve got you covered!
This topic truly extended from a conversation I had with my husband about starting his own business journey. If you don’t know – he recently quit his job and has decided to pursue his own business in construction project management! That business is giving him the runway revenue he needs to eventually farm full-time. (And if you want to hear more about his journey to quitting, check out last week’s podcast here).
What is runway revenue?
Runway revenue is creating a revenue stream that will afford you the ability to do something else.
That could be building an entire business that will earn you money more quickly so that you have the revenue you need to start something that will take more time to build.
It could ALSO be building up a certain monetary pathway or revenue stream within your business that will allow you to also build another one that is slower to build.
I think most people need to do this, but they won’t look at it this way. They’ll focus wholly on a business that is too far out of their reach and think they need to start it right now or give up on it. In reality, that might not be possible without your runway revenue.
This is your permission slip that it is OKAY to have runway revenue to build another business. It’s okay to have a photography business right now that you’re good at, but that’s really funding your dream of starting an Etsy shop. You get the idea.
NOTHING is wrong with creating a business that will afford you the time and money to build another business.
Why you might want to create runway revenue
There are a few different reasons creating runway revenue might make sense for you.
- If your dream business requires a lot of capital
- If you want to build a revenue stream that is slower to grow (think passive income, influencer track, digital products), but you need to make a certain amount of money right now
- You’d love to build a business that could eventually go on autopilot while you work on your dream business
Examples of how to use Runway Revenue
I’ve said this before, but a service will be your quickest way to making money. Most runway revenue business models will be a service that you can scale to a certain point. That money could afford you the ability to hire people so that you don’t have to spend as much time in that service and work on another business elsewhere.
To have enough money to build the business I want
I’ve done this plenty of times in my own business. For example, when I had my web design company, I knew it wasn’t my dream business. But it was my runway revenue stream to get to the course business model. BUT we had gotten used to making a certain income, and I couldn’t just drop that entire business while I started a new one that might not make me money for a while. So it helped provide for me while I built my course-based business on the backend.
I would invest the money I made doing web design back into building my course business. AKA, runway revenue.
To switch gears or take a break in my own business
I am the primary income source in my household, so I can’t just take time off from work when I’m feeling burned out or want to switch gears. I offer one-on-one services to serve as runway revenue when I need a break from content creation or course launches.
My income used to dip significantly if I needed time off – thanks to passive income, it dips much less. But supporting it with those individual services makes a big difference for me, and it helps people who want my eyes on their business!
To give yourself more time to create your dream business
My husband wants to farm full-time. But he isn’t able to spend enough time on the farm with a full-time, corporate job to build up the farm’s revenue in that way. See where I’m going here?
He had the opportunity to quit his job now, work on project management in construction (something he’s skilled at and will make him money), and have more time to devote to the farm. That way, he can start to build it up without losing all of his income.
Runway revenue is totally not shameful! You can and should take advantage of it. It is completely okay to start one business for the purpose of funding another.