Today, women are starting businesses faster than ever before! For instance, in the United States, women are starting businesses at a rate five times higher than the national average. In Canada, we are starting new businesses at twice the national average. At these rates, it is undeniable that women-lead businesses are taking industries by storm, but many women are failing to see (or utilize) the benefits of developing recurring revenue streams.
Today, I am going to explain to you what recurring revenue is, why millions of business owners consider it the “Holy Grail of Business,” and why it is crucial for you to begin developing a way to generate recurring revenue in your business.
“If you want to create a business that allows you to be truly free, you’ve gotta find a way to add recurring revenue into your business model.” – Eleanor Beaton
What is ‘Recurring Revenue,’ Anyway?
Recurring revenue is a way for your business to make one sale, and generate a steady income flow month after month on that initial sale. Recurring income is a lot like your phone bill – your telephone provider does not have to keep throwing sales pitches your way for you to continue giving them your business. Instead, the sold you on their telephone service once, and you continue to pay your phone bill month after month, year after year.
Two Great Examples of Businesses with Recurring Revenue:
- Audio Adrenaline Studios podcast production services
- My membership service – Impact Academy for Women
2 Important Things to Consider To Build a Sustainable Business
- How much does it cost you to acquire a new customer?
- What is the lifetime value of that customer you have acquired?
How to Determine Your Customer Acquisition Costs:
- The number of customers you currently have divided by the total sum of your marketing investments equals your customer acquisition cost.
“Recurring revenue decreases your customer acquisition costs and increases the value of that customer.”
My Challenge to You:
Identify a way to create recurring revenue in your business. It will this help you work smarter and increase your company’s worth as much as 2 1/2 to 3 times compared to other companies in your industry without recurring revenue streams.
Ladies, if you’re going to be working hard, I want to make sure you are also working smart. Developing recurring revenue in your business is a critical aspect of building a sustainable business that will allow you the freedom you want with the income you deserve.
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