Increasing Business Profits by Adding Recurring Revenue Models

One of the greatest parts of entrepreneurship is the freedom to choose how you're going to operate your business. You can choose the type of business you want to run, what your product will be, who you're interested in helping, etc. The possibilities seem to go on and on into eternity. As long as you follow sound business principles, you're at least going to have a shot at success regardless of the type of company you own. However, many business owners overlook one model that could be the key to sustainable growth.

Recurring revenue models can offer predictability and stability, helping you to scale and making your business more attractive to prospective buyers and investors. In this episode, I explore types of recurring revenue models and how they could benefit your business regardless of industry.

"If you think in a constructive manner, in a creative manner, more than likely, you can fit or you can adjust or modify one of these models into your own business or to complement your current offering so that you, too, can increase the value of your company." – Justin Goodbread   This week on The Financially Simple Podcast

• What is recurring revenue? (2:31)
• Subscription-based with auto-renewal (4:00)
• Long-term contracts (5:12)
• Cross selling or supplementary products (6:40)
• Why does recurring revenue matter? (9:10)
• Financial predictability (9:34)
• Added stability (11:23)
• Deeper customer relationships (12:50)
• Easier customer experience (16:21)

Our Favorite Quotes:

"Any objection to the downside risk can be easily overcome by the benefits." – Justin Goodbread

"I have yet to see a business where we cannot institute some sort of a recurring revenue model." – Justin Goodbread   About The Financially Simple Podcast   If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey. 

  If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/   Connect with Justin: Financially Simple newsletter Facebook LinkedIn Twitter   Subscribe Here: Apple Podcast Spotify Google Podcast iHeart Radio Stitcher  

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Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”).

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast’s hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.