Why Your Business Needs More Sauce
March 30, 2009
Sauce is a great way to protect your business in a downturn. And more sauce may also enable your business to earn way in excess of what you’re making now.
Magazine publisher Felix Dennis claims that he didn’t make any “real money” until he’d came up with at least a dozen recipes for adding sauce to his business. And all that sauce has taken his net worth to around $900 million.
No matter what type of business you have, more sauce could make your profits sizzle, once you know how to do it.
It’s Not Just Pie In The Sky
Imagine you own a pie shop in Kansas and you make the best pies in the world. Trouble is, only people from Kansas know about your pies. You approach places like Walmart but they don’t want to stock your pies, as they already have plenty pies of their own.
But because you’re smart you do a bit of research and your customers tell you that it’s not just your pies they love. They just can’t get enough of that great sauce you sell with the pies. And if you sold it in buckets, they’d put it on everything.
So you haul your sauce to Walmart. And they say no to selling it in buckets but bottles would be good. So soon you’re selling tens of thousands of bottles of the stuff and you realise you’re not in the pie making business anymore, you’re in the sauce making business. But that doesn’t last long.
Those sauce loving customers just can’t get enough of your stuff, so the shops change their mind about your pies and soon they’re selling mountains of those too. Then you start making cookies but they crumble. So, because you’re smart – you forget the cookies and look for more profitable baskets to add to your business instead.
6 Reasons To Add More Sauce Recipes To Your Business
- Protection from Financial Disaster: If you have several streams of income and one flops, it shouldn’t ruin you financially, so long as you cut your losses early on.
- Take Advantage Of Trends: While it might not be smart to bet the farm on the latest fad, you can still profit from it, if you have other streams of income.
- The Risk Factor: Fear of failure discourages a lot of people from taking risks. But if you already have several streams of income, adding another one is far less risky.
- Attract More Customers To Your Existing Business: A new product may enable you to attract more customers to your existing business.
- You Can Make Extra Income With Less Effort: The more baskets you have, the more well known you become, so you can actually add streams of income that require little investment of time and money on your part. For example, you could get someone to ghost write books in your name, or you could lend your company name to other businesses, for a fee.
- More Fun: Unless you’re happy to spend several decades being bored, in return for a payoff that you may eventually live to see, adding extra flavours of sauce to your business keeps things exciting.
And It Doesn’t Matter If You Don’t Like Pies
I can’t think of any type of business where this could fail to work. Even in the music business, the folk that have added more sauce make the most money.
Obviously, touring is a huge earner. But many musicians look for less obvious income streams. 50Cent has launched his own Magic Stick condoms. You can learn new Dance Moves at: DanceJam.com, MC Hammer’s website. And Joe Perry of Aerosmith really does sell his own sauce. Rock Your World Sauce comes in two flavours: Boneyard Brew Hot Sauce and Mango Peach Tango Sauce.
Writers make more money by adding baskets too. J. K. Rowling would have made a lot of money from her Harry Potter novels alone. But adding film rights and merchandising rights made her a billionaire.
But extra money for novelists doesn’t just come from films. Tom Clancy has made millions from videogames and Danielle Steele has profited by adding her name to perfume.
And It Doesn’t Matter If Your Only Talent Is Taking Your Clothes Off
The careers of glamour models may not last as long as their silicon implants but those who are smart can make far more money in other areas than they can for baring their naked flesh. Jordan (aka Katie Price) has made millions from additional baskets including ghost written novels, perfume and even an equestrian range.
But You Don’t Need Silicon Boobs To Do It
Donald Trump will never be a glamour model and he probably won’t get silicon implants either. But that hasn’t stopped him from adding extra baskets to his business. Even though the housing market is in trouble, he’s still raking in the cash from additional baskets including books and the Trump University.
And on the other side of the pond, Richard Branson has added dozens of baskets to his business. Some have been a huge success – like Virgin Airlines, while others, like Virgin Cola have gone flat.
Branson also makes money by lending the Virgin name to other businesses. This is a smart move, as he gets paid but he doesn’t have to risk his own cash to make a profit.
What do you think about all this sauce? Please share in the comments section.
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Image Credit: Stephen Saucier
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23 Responses to “Why Your Business Needs More Sauce”
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Cath,
Adding more ’sauce’ to your business could be just what your business needs in order to stand out ahead of the pack from the viewpoint of your customers.
Even if not every attempt to ‘add source’ is not successful, there is one thing of which I am certain – if your business is not growing somehow, it will eventually wither and die, and the process of ‘adding source’ as you say, may just represent that breakthrough that your business needs in order to prevent stagnation.
Andrew’s last blog post..Should disgruntled staff kidnap the boss?
Hi Cath – You’re right: “same old, same old” will not induce someone to part with their money in this economy. Sizzle on a great steak is what keeps us coming back. If you’re the same as everyone else, or you are constantly delivering mediocrity, you’re done. Thanks for the reminder!
Betsy Wuebker’s last blog post..ALL THE WORLD’S A STAGE . . .
You should also think about diversifying your business ventures so there are some that do well in a poor economy. For example, car dealerships are hurting because no one is buying new cars. But they also sell used cars, which are in demand when people aren’t buying new cars. And their parts and repair shops are keeping them afloat because people are keeping their old cars and getting them repaired.
Hi Andrew – The growth thing is a really good point. Sometimes, folk feel like they need to be doing more of what they’re already doing. But instead they can grow by adding new products and services.
Hi Betsy – That is what I like about your new travel business. You offer a lot of extra stuff that I don’t see on other travel sites. I especially like your Dream Trips feature. Anyway, I have a blog post scheduled on that so i won’t say too much more.
Hi Cath, Yep, you have to always be cooking up new sauce. Some entrepreneurs have a knack for seeing a monetization angle in everything – Donald Trump is a classic example. Some of these ideas seem so obvious after they’re created … the trick is being able to identify the opportunity before anybody else spots it.
Brad Shorr’s last blog post..If You Have Lots to Say, Say It on a Business Blog
Wow, super idea! But also remember too – add sauce wisely and poll your market FIRST before plunking down a huge chunk of change. I learned that extremely painful lesson with the second out of 25+ books I wrote. ‘course, never did make that same mistake again….
Barbara Ling, Virtual Coach’s last blog post..What Profit Personality Are YOU?
Hi Cath: I completely agree that it’s a great idea to leverage your product as much as you can. Tyra Banks was a supermodel and now she has her own talk show as well as the very successful “America’s Tope Model”. I wouldn’t be surprised if she also sells other products I’m not aware of.
Marelisa’s last blog post..Creative Insights From the Worldwide Web
Wow this is a new way of thinking for me. But I see how it works and grows a business and some security.
Thank you for giving me some new ideas. Nice post …
Patricia’s last blog post..A Prayer in Spring
I agree. It makes sense to keep the core of your business, but add sauces, trends and flavors over the years. I also agree that this can work for any type of business – including blogging and writing, by the way.
Vered – MomGrind’s last blog post..Teen Fashion
Hi Catherine – I totally agree diversification is key to success – especially when the economy is slow. Those who take advantage are the smart ones, I’m thinking of how Rachel Ray went from 30 minute meals to dozens of books, to a talk show, her name on olive oil plus her name on pots, pans, and kitchen utensils.
To think, she suggested that someone else do that kind of show (30 minute meals). Look at her now. Amazing!
P.S. I’ve finally changed my avatar to my own photo. Are you next?
Barbara Swafford’s last blog post..Then and Now – A Metamorphosis
Hi Brad – That is true – you wouln’t want to be the last person on the boat. I’m betting Trump has added a lot of things. I think I read something about a golf course and a hotel too.
Hi Mare – I’ve heard of Tyra Banks but I didn’t know she’d added those other things. Elle McPherson is another supermodel who has added other stuff. I’m surprised more of them haven’t done so.
Hi Patricia – You are welcome – I hope it helps. To get ideas for additional sauces, it’s worth Googling people to discover what they’re been doing.
Hi Vered – It could definitely work for blogging and writing. There’s so many things you could add.
Hi Barbara – As soon as I saw your pic, I realized it would put me under pressure. But I know I’ll have to put one on here soon – probably some time in the next month when I can make the effort to get my roots done. I’m really lazy about going to the hairdresser – usually I only get round to it about once every four months.
I will have to look up Rachel Ray – I’m not sure if we have her show over here. Her story sounds fascinating.
In the UK, Jamie Oliver seems to be adding many similar things. I know he does plates and stuff, as we have some. I haven’t seen Jamie Oliver olive oil yet though.
Your sauce idea is interesting. I’ve always called it developing multiple streams of income. I just finished my taxes and I earned from four distinct streams last year but this year I’m going in the opposite direction by adding tons more value to my core coaching business.
It’s important to solidify expansion plans in ones core business before adding sauce because the sauce can be a distraction that dilutes value elsewhere.
I also must note that all of the examples shared were from celebrities who already had enormous names recognition and that fact gave the marketing of sauce quite a jump start.
Tom Volkar / Delightful Work’s last blog post..Killing What Scares You
Tom – I wondered when someone was going to point out the obvious. I usually call it multiple streams of income or building baskets too. But halfway through writing – I thought bugger it, I’ll call it sauce. With hindsight, I think I’ve probably confused a few people.
Good point re: the celebrities – once you are more well known it’s far easier to market new stuff. Businesses can do that too though and if you’re targeting your existing customers with new products, you already have an audience.
Cath
I too HATE the term “multiple streams of income”! I guess I hate that term because it’s actually describing an age old sound business practice which is based upon the REALITY that it takes as lot of time/effort/expense to “win” a new customer.
Once you’ve “won” that customer – you should find ways of continuing to provide goods and services to people who already know you and trust you!!!
IMHO – Multiple Streams of Income doesn’t convey that you have an established “audience” or customer base.
While I know that modern day rappers are the philosophers of our generation – I beg to differ. It’s not “all about the Benjamins” but rather it’s all about the customers. Whether you’re selling crack on the streets or designer duds in the mall – business success is all about customers – REPEAT customers!!! Which is why your “sauce” analogy works so well!
Kathy | Virtual Impax’s last blog post..A Love/Hate relationship with Social Media Marketing
Hi Cath, it’s been awhile. Wonderful to see you’re still creating and sharing great posts. Laughed at the thought of Trump w/ silicon implants. At first, based on the sexy photo & title I thought post would be about “sauciness” or a fun & spicy “flavor” that helps differentiate you in your market. Maybe a future topic?
I love the analogy of buckets & bottles of sauce to get your foot in the door. I looked at it as up-selling or cross-selling. If you have trouble selling your core product (pies), you might be able to pick-up new customers with a different offering (sauce). Once your foot is in the door it’s easier to sell other offerings now that you have a relationship with them. Cheers!
Sterling Okura’s last blog post..Recent Projects Built With Free Tools
Hi Kathy – I find the “multiple streams of income” thing a bit dated. And as you say, a lot of folk advocating it don’t mention the importance of customers.
A lot of books I’ve read on the subject focus on making money and as you say, that idea misleads readers.
Cath Lawson’s last blog post..Why Your Business Needs More Sauce
Hi Sterling – I’m glad you’re still alive. I like using misleading titles sometimes.
I guess that’s more or less what I was trying to get across. Of course, after you’ve created a few different products or services, you could try to sell to a different market but it makes sense to find stuff your existing customers want first.
Hi Cath. I like this idea because with the right combination of products and services, a person can take advantage of cross marketing. It actually looks like you have more to offer existing customers and so your value increases in their eyes.
Davina’s last blog post..Good Advice in Tough Times
Nice post, Cath. Thank goodness I’m a pie lover and I have no obsession of the woman that has silicon boobs! lol
wilhb81’s last blog post..The Useful Business Tips 23: The Best Ways to Fill Up Your Taxes Correctly!
Cath, I just have to say you really are the most creative business blogger around ANYWHERE. The angle of this article is so clever and funny and you can’t help but read it. Kudos, seriously.
Kelly x
Kelly@SHE-POWER’s last blog post..Can A Non-Believer Find Wisdom in a Catholic Saint?
hi Cath,
Interesting thoughts on adding more “sauce” to your business. But I don’t know. I’m used to “chefs” that serve overcooked or poor quality meat covering it up with “more sauce”, but I don’t think that’s what you mean… I also got lost at the idea of Donald Trump with silicone implants… I’d cover that up with more sauce for sure.
Maybe I’ve had a bit too much sauce…
~ Steve, the sauced trade show guru
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[...] Happy Mother’s Day to Cath, who gives excellent business tips on her blog. One of her best posts, in my opinion, is Why Your Business Needs More Sauce. [...]
Great advice but don’t tell any of my competitors. Not exactly “change or perish” but pretty close. Adding new products, new web pages, all help but ‘CHANGE-not the coins in your pocket’ any more.
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