Intentional Growth 3X the Value of Your Company with Recurring Revenue
My guest today is Loren Horsager, the CEO and co-founder of Mobile Composer. Loren has been working in software development for 25 years. Mobile Composer helps identify software development opportunities for companies to target niche areas of their market. All industries can benefit from a software application.
Loren shares how software can increase value to a business, especially when it comes time to sell. Mobile Composer helps clients sit down and actually plan their software development in a logical and constructive manner. He discusses his company’s process of finding the specific niche that will benefit the client. In today’s online world, establishing a source of recurring revenue is key to attracting good quality buyers. Mobile technology done right gives a business a leg up on their competition.
You will learn about:
- Loren’s software development background.
- What Mobile Composer does for their clients.
- Why pivoting into software begins with your market.
- Common issues companies have when developing a SaaS product.
- The importance of planning all aspects of software.
- How to measure an increase in value to a business.
- How to build a product that is maintainable and adaptable.
What do your company do for recurring revenue? If you answered “nothing”, you’re not the only one. However, our guest today says that developing a recurring or passive income source for your business can triple your value—so maybe it’s time to look into what avenues are available for you to expand into and allow you to tap into this revenue stream.
Lorne Horsager has been in software development for 25 years and knows his stuff. The examples he gives within the show of various industries and the way they provide SaaS or other recurring revenue services are well-rounded and can really spark your imagination of what is possible. Here are some key things to focus on when looking for a passive revenue source within your business.
Know What You Do
As with anything regarding your business, you really need to know what you’re about before you can go dumping money into a new product or service. If your company doesn’t typically use software, it can be even more daunting to develop some SaaS to help retain clients or improve your services. However, the end investment is worth it both financially and personally as it tends to save you a ton of time on the back-end (think automatic scheduling, billing or other similar rote service you do daily). Your client and your staff will thank you for streamlining some of the more tedious tasks.
If you are a subscription-based service or already have recurring revenue, no one needs to tell you just how valuable it is to have that predictable revenue ticking over each month without you having to actively seek out new business. Everyone’s dream, right? But there are always avenues you haven’t thought to explore or packages you have yet to create.
So it comes back to knowing your business. Know who you’re selling to and the present market conditions. Take stock of your employees and your operational efficiency. What elements of your business could be improved through software in some way? If you can’t come up with anything, ask your staff! They run the front lines and deal with all those daily headaches that you no longer wish to (good work on that, by the way). If your front desk workers think a queue system and online database scheduler would save you time and money (and help deliver services faster and more efficiently), look into buying or developing that. Perhaps you have clients who routinely get key services performed. They may be open to regular billing to save time.
Either way, it doesn’t hurt to look into what elements of your business can be streamlined with SaaS.
Build to Suit, but Plan the Route
You want to have something that matches your market niche and is individual to your business, of course. However, you don’t want to force a product out that isn’t ready. You need to ensure that what you’re developing is necessary (courtesy of your above research) and that it is as bug-free as possible. Shoving something out into the market that is a huge headache to use or has tons of issues is going to do the exact opposite you want it to and taint your future endeavours in the SaaS arena.
If your business isn’t able to create its own software program, that’s okay. You can hire out for this service from many freelancers or contractors, no problem. Technology is a very in-demand market right now and there are tons of people who know just how to help you build your product. If, however, you’re able to do it on-site, that’s even better since you have less concern over NDAs or delivery dates.
Where’s the Value?
Whether you’re developing the product to simply streamline your business on the back-end or you want to sell a new service to your clients for a passive revenue stream, SaaS adds to your business’ value. Not only does recurring revenue provide much-needed cash flow, it also shows potential acquirers that there is less risk in buying your business because the present revenue model isn’t contingent on you as the owner being there to continue to drive sales through loyalty or your specific skills.
As Ken Sanginario always says, you want a predictable, transferable and sustainable business. Recurring revenue is an excellent way to show that your future cash flows will stay strong because they’re not going anywhere (with a little TLC from you and your team to ensure those services stay current and necessary, of course).
So take a long and thorough look at your business. Do your due diligence and see if there’s an area where you can improve your cash flow through SaaS and therefore increase your value in the market. After all, we want to set you up for a successful and happy Life After Business and this is just one of the more valuable ways we can help you do that.
Takeaways:
- Know your business, know your customers, and know your market. Every business has a niche that can be served better by technology. However, you need to know what needs to focus on and how to solve the problem.
- Creating a mobile SaaS product is a lot easier now. Don’t be afraid to explore this avenue in your business.
- Plan, plan, plan and plan some more! Don’t push development just to get ahead of the competition. Build the software right and consider the future of your industry when you plan the product. Don’t be in a hurry and offer an awesome product!
Links and Resources
About Loren:
Loren Horsager, Mobile Composer CEO, and founding partner has 20+ years of experience building teams to deliver software solutions, and manage consulting organizations. A visionary who understood the tremendous business potential of mobile technology early on, Loren regularly presents about how companies can develop and execute on mobile strategies. He is a recognized expert in Microsoft and Xamarin development tools.