The work that generates monthly revenue is exactly what freelancers should cultivate.

Hello, this is Iguchi.

As a sole proprietor, I am exploring methods for web attraction and sales promotion that can be practiced even with small capital, while repeating hypotheses and verifications every day.

In this note, I focus on marketing terms that you might have heard of but are often used vaguely. Based on my own research and actual experience, I have summarized them in the simplest possible language.

I would be happy if even those who are not good at technical terms could think, "I see, that's what it means."

"I want to try new things. But first, I want to stabilize my life..."
Do you have any idea about that dilemma?

Hello, this is Iguchi.
By the way, as a sole proprietor, I am repeating practice and verification every day while learning marketing and how to write.

When doing business, it's easy to focus on "new things that can grow more."

That's exactly how I am too.

But at one point, I started to think, "Wouldn't creating stability be the choice I won't regret most later?"

The thing is, we are easily pulled by the feeling of "not wanting to regret" unconsciously (this is called "regret aversion bias").

If you go all-in on challenges, you might regret it if it doesn't go well, thinking, "I should have built a foundation..."

Conversely, if you only choose stability, you will regret it, thinking, "I should have challenged myself more..."

So, what should you do?

The hint for that is this theme, "Cash Cow".

It sounds difficult, but it actually refers to an existence in your business that continues to generate revenue stably.

In this article, I will gently explain the meaning of "Cash Cow" and share with you, along with my own realizations,
why it leads to a "way of working without regrets".

"Challenge" and "stability" can coexist.
Let's look at the first step toward that together.

Exploring the true nature of the "Cash Cow"!

First, as a result of researching on various websites, I found that "Cash Cow" is a term that appears in an analysis method called "Product Portfolio Management (PPM)" proposed by the American consulting firm Boston Consulting Group (BCG).

Simply put, it refers to "a business, product, or service that has a low market growth rate but a high market share and generates large, stable revenue (cash)." It's strange that the market share is high even though the market growth rate is low, right?

But this is the secret to stability.

Let's use familiar things as examples! What is our "Cash Cow" like?

I didn't get it at first either, but it became very easy to understand when I used familiar things as examples.

For example, imagine "milk," which often appears on our dining tables.

Milk isn't a very novel product, is it?
The market isn't growing rapidly either.

But many people buy it frequently, and it's always available if you go to the supermarket.
A specific brand of milk is chosen because "this is the one I feel safe with!" and it continues to sell stably.

Exactly this "indispensable existence that stably and naturally generates revenue" is a "Cash Cow."

It's the image of a reliable dairy cow that gives milk stably every day, not a slightly expensive brand of beef!

"Cash Cow" for sole proprietors and freelancers

So, what specifically are some "Cash Cows" for us sole proprietors and freelancers?

Let me give you a few examples.

Ongoing web writing/web production projects

Projects with clients who request a fixed volume every month are the prime examples of a Cash Cow.

There is little effort to find new clients, and once you build a relationship of trust, you can expect stable income.

Even if the market as a whole is not growing rapidly, if you have built a high share (monopoly state) within the relationship with that client, it will generate stable cash.

Advisory contracts/consulting

Work that involves signing annual or monthly contracts with specific companies or individuals to provide regular consulting or advice also falls into this category.

Once you sign a contract, it becomes a stable source of income without major fluctuations.

Services that utilize specific skills or expertise

For example, "illustration production specialized in a specific niche industry" or "specific SNS operation agency" are services with few competitors, and once you acquire a customer, you can get continuous requests, so they can become Cash Cows.

Subscription-based content (online salons, paid newsletters, etc.)

This is a slightly advanced version, but it is a mechanism that generates stable revenue every month once you capture fans.

Even if the market growth rate is not extremely high, if you have a fixed customer base, it becomes a stable source of income.
The point is "something that, once built, continues to generate revenue stably without much effort." Of course, it doesn't mean it takes no effort at all, but it's the image that the existing foundation is generating profit firmly, rather than being in a state of running around to acquire new customers.

Summary: "Cash Cow" that strengthens our business

This time, I researched the term "Cash Cow" in my own way and deepened my understanding with you.

By having a stable Cash Cow, you will have the leeway to take on new challenges or invest in other businesses.

Your business might already have something you can call a "Cash Cow."

Or, you might have set a goal like, "I want to cultivate a Cash Cow like this from now on."

Why don't you take a look at your own business and find your business's "Cash Cow"?

That should be the first step to making your business stronger and more stable!

Thank you for reading to the end.

I would be happy if this article led to a small realization like "I see, that's what it was!" or a hint for your ideas.

It would be very encouraging if you could follow me.
I will also follow you back ^^