A reliable, recurring and regular income stream for your business from a single source is a wonderful thing. Some businesses refer to them as retainers, others simply call it repeat business. There are other names too but whatever you call it, from the outside looking in, it’s called a healthy and valuable business.
You see, marketing is an expense that can get really expensive if it’s not leading you to more sales. Cold calling contact lists can take its toll and prospecting for new clients is necessary but not necessarily easy. But providing goods and services regularly to regular customers is – or at least relatively so.
When a small business can show turnover, unencumbered by heavy costs of doing business such as business development time (and associated fees and or salaries), it’s a clear sign that margins are healthier. It also suggests that profits will be healthier and more sustainable. Potential investors or those in the market to buy all or a piece of a small business, will be attracted by the sweet, sweet scent of recurring dollars. Even if you are not interested in selling your business or taking on an investor, take their interest as affirmation that you are on the right track and the value that you add for your clients has made your business even more valuable.
Recurring revenue or retainers also suggest to interested parties that you have and maintain good relationships with those clients. It says that you and your commercial enterprise are easy to do business with, which means running the business will be easier. All of these aspects of your business represent valuable ticks in all the right boxes and are important features of a “Cashed Up Business”.
If 50% or more of your revenue is derived from monthly subscriptions or similar, you will automatically have more time to work on your business (the offer, the customer experience, innovation and future-proofing…) instead of in it. You will have progressed from maybe “owning a job” where you find yourself well and truly in the operational space to owning a Cashed Up Business. Now you can rely on your established processes and systems to help keep the business and the revenue ticking over.
Tip: ensure that all of these valuable processes, protocols and systems are clearly documented. Think of this compendium as an owner’s manual or instruction booklet. Any well-oiled machine is far more valuable when it comes with a detailed handbook and a clear path to sustainable success i.e. recurring revenue.
For more tips on how to turn your life’s work into a Cashed Up Business, book your place at one of our workshops (June 2 and 15), it will make all the difference to you.