Competitive advantages increase revenue by 30% over the competition or decrease cost by 30%.
Recurring revenue is a key competitive advantage.
In today’s world you would think every business has recurring revenue. Yet, I find most businesses who are raising funding did not structure their business for recurring revenue.
Recurring revenue helps your business in several ways.
It opens up your business to new customers who could not afford your product previously because the one-time payment was too high. By breaking the payment into smaller steps, more customers will be able to afford it.
It provides an ongoing revenue stream so you can plan your business better as you know how much you will have coming in.
It helps you maintain engagement with the customer and gives you the opportunity to find new opportunities to serve the customer.
Overall it should increase your revenue in the long run by at least 30%.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.