Businesses with recurring revenue find benefits over companies without it.

Here are a list of reasons why you should move your business to recurring revenue:

Predictability — helps predict the level of demand for your products or services and the amount of revenue you’ll make from it.

Automated invoicing — instead of chasing invoices each month, the recurring revenue model automates the invoicing process reducing the time and cost of collections.

Market intelligence — a cohort of customers signed up for recurring revenue provides a great opportunity to run market research campaigns.

Customer loyalty — customers signed into a subscription maintain greater loyalty to the product.

Greater revenue — customers signed up for a subscription are good candidates for upselling and cross-selling.

Valuation — businesses with recurring revenue command a higher valuation in fund raises and upon exit due to the stickiness of the customer base.

While it may not be possible to move your entire business to subscription in most cases some portion of the business can be moved to it.

Consider these advantages for your business. 

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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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.