Creativity yields productivity

I apologize for the lag time in posts.  You see, I spent the last few days in Houston, Texas visiting family and pursuing opportunities.  Time will tell, how successful my trip actually was.  

As this posts gets more and more exposure, questions are starting to arise.  Such as, what is the overall cost to generate non-traditional revenue.  Man hours?  Administrative costs?  Liability insurance costs?  As with starting any business, there are going to costs associated with beginning a department or redirecting time efforts from a core business any individual was hired to do.  I will tell you, the first deal I negotiated cost my company approximately $1,500 in logistics, administration and maintenance.  Eventually, we were able to turn our red ink into black, but it did take some time first.

Therefore, I wanted to address any skepticism there may be about pursuing ancillary revenue.  Any new deal that you would consider, needs to address your costs.  In order for any revenue to fall to the bottom-line, it needs to address the time, effort, logistics, etc...needed to bring anything to fruition.  To handle this potential situation, I suggest assessing an administrative fee to your deals.  You funnel this money directly to your costs or consider another profit center.  Public companies, show these fees as another revenue stream as smaller ones will address the costs.  The method of handling the situation is irrelevant as long as you aren't losing money in the end.  

Pursuing ancillary revenue can be time consuming.  It is best to know how to handle the situation before addressing it.  Therefore, make sure the "tenant" bears as many of the costs as possible to increase your programs profitability.