June 16, 2016
Have you discovered the recurring revenue business model yet?
When it comes to building the value of your business, what happened in previous years is much less important than knowing what is likely to happen in the future.
Here at The Profit Key we know that one of the most important ways you can secure the future of your business is by creating some recurring revenue. Recurring revenue also has the added benefit of delivering sales ‘as if by magic’ without really having to spend valuable time and resources. Great examples of recurring revenue models include items such as ongoing service contracts, subscriptions, and memberships or simply put any sale where the customer has to proactively opt out of, instead of in to.
Recurring revenue is critical for the value of just about any small business, and it is equally import for the world’s largest businesses.
Whatever your business and regardless of the sector you operate in there is probably a mechanism we can identify that will create recurring revenue for that business.
Sometimes you have to add service lines and other times you ‘simply’ charge for a service you either already supply but don’t charge for or convert repeat sales that require repeat closes into a standing order.
Either way the effect of recurring revenue has a fantastic value to the business and its future valuation.
If you’d like to know more about recurring revenue then please get in touch, please get in touch, please get in touch, please……you get the idea!