THIS is the secret to predictable cash flow and growth in your business
Take the financial stress away and create better plans for your small business
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Let’s not over complicate this thing for your business-reoccurring revenue is simple: It is income in you business that you can count on regularly, whether it be weekly, monthly, quarterly or any other schedule dictated by you. Using reoccurring revenue strategically in your small business lends itself to rapid growth and cyclical patterns. Plain and simple? You know when to expect your money all. the. time.
Here is what all entrepreneurs need to know about reoccurring revenue
Here’s the deal, this could be a game changer for your small business. Don’t believe me? Here’s why:
- Predictable cash flow – I don’t know about you, but I like knowing when I will be paid and how much. The predictability takes the stress out of finances for your business.
- Budgeting – Hello, If you know what is coming in/when, you can prepare for seasons of growth, asset purchases, and any other initiatives you have in mind for your business!
- Ease of automation – Using reoccurring revenue you can cut down your admin expenses and responsibilities! Who doesn’t love working less and using automation for the heavy lifting?!
Create a value ladder for your small business
Picture a ladder. At the bottom, on the first row, is your lowest offer. The next row, a bit more of an investment, and so on and so forth up the ladder.
Think of ways you can mimic that ladder to create services or packages to meet your clients where they are right now.
Determine what services your clients need on a reoccurring basis. Here’s some thoughts to get you thinking: think through the projects you have completed, the services that your clients have requested, or complementing services you are great at; all of these could be a reoccurring offer to your client base.
Tips for transitioning to a reoccurring revenue structure:
- Ensure that your deliverables are clear. We don’t want any emergencies popping up because your contract or service agreement was vague!
- Price your services for profit! Take into consideration the time and resources needed to complete each package or service. If you are struggling with pricing and determining your ideal client number, go listen to THIS episode! Know your worth, and stick to it!
Scale your business with reoccurring revenue
The possibilities are endless when it comes to scaling using this income model!
- Client retention – It is a whole lot easier to keep a client than it is to recruit a new one. Use your reoccurring service to stay front and center of your clients mind, always giving them exactly what is expected on the timeline specified.
- Leverage automation – it’s no secret that I am a firm believer in working smarter, not harder! Let your processes work on auto pilot.
- Pitch reoccurring services or packages to past clients. You may be surprised just how excited they are to hear from you again!
- Leverage your connections – Let others know you have new offers! We as humans LOVE referring other to services and products that we swear by!
This episode is full of ideas to get your creativity flowing and your mind in the right headspace to fully comprehend the power of reoccurring revenue and what it can mean for your business.
LINKS MENTIONED IN THE SHOW
Episode 2: How many clients do you REALLY need
Episode 7: 6 ways to manage cashflow in your small biz
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Hey, I’m Lexi!
Small town mom, wife, and biz enthusiast! When I’m not nerding out over small business financials or recording my podcast, you can find me in the passenger seat of our Jeep or talking entrepreneurship over a cup of coffee.
My mission? To help service based business owners grow + scale with strategic planning and financial data so they can do what they love every dang day!
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