Diversifying your income streams in four simple steps

The economic situation in Nigeria and indeed around the world has been a cause for concern. With inflation on the rise, disposable income shrinking, and financial pressures mounting, many are finding it difficult to maintain their standard of living.

The uncertainty of the times makes it clear: relying on a single source of income is no longer enough. To survive and thrive in this challenging economic climate, diversifying your income streams is crucial.

But how do you go about this? The answer lies in a simple, practical framework I refer to as last:

Learn a Skill

Apply the skill

Scale the Skill

Tech-the Skill (Automate It)

This approach not only helps you build financial resilience but also opens up new opportunities for growth. Let’s break down each step and see how you can implement them in your life.

1. Learn a Skill

The first step to diversifying your income is to learn a new skill, preferably one that is in high demand. The key is to identify a skill that intersects with what people need right now. For example, digital marketing has become a vital tool for businesses as more companies shift online. If you’re already familiar with marketing, consider expanding your knowledge into areas like social media management, search engine optimisation (SEO), or content creation.

Where can you learn it? The good news is that there are countless online platforms offering courses on almost any skill you can think of. Websites like Coursera, Udemy, and LinkedIn Learning provide affordable and sometimes free courses taught by industry professionals. You can also explore local workshops or community centres offering training sessions. You can also learn directly from someone who understands the skill you intend to learn.

Skills you can learn are not limited to digital skills. You can learn catering, makeup artistry and more.

2. Apply the skill

Learning a skill is one thing; applying it is another. The moment you gain proficiency in your new skill, find ways to put it into practice. Start small—perhaps by offering your services to friends or small businesses at a discounted rate. This not only gives you practical experience but also begins to build your portfolio.

For instance, let’s say you’ve learnt graphic design. You can begin by creating designs for local businesses or start a small freelance operation. The key here is to get your foot in the door and start making that skill work for you.

3. Scale the Skill

Once you’ve applied your skill and gained some traction, the next step is to scale it. Scaling means increasing your skill’s impact and reach, which in turn increases your income potential. How can you do this? You can achieve this by broadening your client base, raising your prices in line with your growing expertise, or diversifying your offerings.

Continuing with the graphic design example, scaling could involve taking on larger projects, hiring other designers to work under you, or creating digital products like design templates that you can sell to a wider audience. The goal is to move from one-off projects to a more sustainable and lucrative business model.

4. Tech-the Skill (Automate It)

Finally, leverage technology to further scale your skills and income. This involves automating parts of your business or using technology to reach a larger audience with less effort. For example, if you’re into digital marketing, you can use automation tools like Buffer for social media scheduling or Mailchimp for email marketing campaigns.

In the case of our graphic designer, automation might involve setting up an online store to sell pre-made design templates, using platforms like Etsy or Shopify. You can also create an online course teaching others how to master graphic design, allowing you to earn passive income.

Practical Example: From Skill to Income Stream

Let’s consider a practical example: teaching. Suppose you have a knack for makeup, and you have also learnt how to teach the art.

You can also learn the skill of creating educational content around it and start by offering tutoring services locally or online through platforms.

As you gain students and positive feedback, you scale by creating a series of courses or educational materials that cater to a larger audience. Eventually, you can automate parts of your business by setting up an online platform where students can access your materials at any time, providing you with a steady stream of passive income.

Remember, it’s not about how much you make from one source, it’s about how many sources you can create. Expenses are multiple in nature, after all.

So, ask yourself: What skill can I learn today that intersects with people’s needs? Where can I learn it, and how can I apply, scale, and tech it? The answers to these questions could be the key to your financial survival and success in these uncertain times.