When you look at your personal life, how many subscriptions do you have?
News sources? Music, Movies, and more? How about health supplements? And licenses for computer programs?
I’m Linda Feinholz. I work with business owners who don’t want to get stuck in their business and want more Control, Value and Freedom.
The next commandment is Thou Shalt Develop Recurring Revenue
There are 3 reasons for it.
First, it ties your customers to you so you have the opportunity to offer them more solutions and increase they purchases from you. It’s kind of like a Trojan Horse. And that increases the Lifetime Value of your customers.
Second, it makes your cash flow predictable.
Third, it reduces Waste!
What do I mean by that? Here’s a great example.
Most of us are used to buying flowers or a flower store. We buy them on Mother’s Day and Valentine’s Day, don’t buy a lot of flowers throughout the year other than on key special occasions. And when we do buy flowers, we make a one off purchase. We certainly don’t buy them on a recurring basis.
Panda and Burkhardt figured out how to change the way some customers buy flowers.
They set up H. Bloom to sell flowers just to people who need them on a recurring basis, changing the behavior of hotels and restaurants and spas.
A typical personal purchase of flowers runs around $29. When a customer has H. Bloom supply them with flowers every 2 weeks on contract, the typical lifetime value of an H. Bloom subscriber is more than four thousand dollars.
H. Bloom can spend more and invest more in sales marketing because they know that when somebody makes a decision to purchase the lifetime value of that customer is so much longer and so much more profitable than if they just buy them on a one off basis.
So one reason that you want to create some recurring revenue is that the lifetime value of your customers go on and expands tremendously.
Staying with H. Bloom, the business is selling these flowers on subscription which makes their business much more predictable. They know how much cash is coming in and going out and when.
And here is the aspect that most business owners don’t give enough attention to: Waste. Wasted time, wasted labor, wasted inventory. The typical flower store that throws out more than 50, 5 0 percent of its inventory every month. Why? Well, because it’s rotting in the fridge and they ordered the wrong amount of flowers.
At H. Bloom they only throw out TWO percent of their inventory each month. They know how many subscribers they have and they know that the Westin in Atlanta wants Gerber daisies, the Marriott, Miami wants roses. And they buy just the number of flowers they need in order to fulfill the subscribers that they have.
Now, you may be saying, OK, but “I don’t have inventory and I don’t have to worry about spoilage.” But if you employ people. You DO have spoilage because those employees come in on a Monday. They expect a paycheck on a Friday. And if you are not able to supply them with work, if you were not able to keep them busy OR if you overwhelm them with work because you have too much, it can be just as costly for your business.
So when we’re creating recurring revenue for your business, it’s really the predictability that we’re creating in cash and operations.
And that predictability and reduced risk adds HUGELY to the Value of your business in the eyes of your banker, and any business brokers or prospective buyers who come looking at your company.
If you want to get a quick summary of the 6 forms of recurring revenue, to see which might be a fit for your business, go to OnDay91.com/revenue . And if you’d like to share your ideas with other value building business owners, take a look at our online Momentum Program for Business Owners who Don’t Want To Get Stuck In Their Business. You’ll find information about it at OnDay91.com/momentum and can decide if it’s a fit for you.
And if you know business owners struggling to get control over their cash and operations, this could be just what they’ve been looking for. So do share it with them. Let’s get as many people we can to stabilize their business with recurring revenue so they can scale up.
We’ll talk soon.
When you look at your personal life, how many subscriptions do you have?
News sources? Music, Movies, and more? How about health supplements? And licenses for computer programs?
I’m Linda Feinholz. I work with business owners who don’t want to get stuck in their business and want more Control, Value and Freedom.
The next commandment is Thou Shalt Develop Recurring Revenue
There are 3 reasons for it.
First, it ties your customers to you so you have the opportunity to offer them more solutions and increase they purchases from you. It’s kind of like a Trojan Horse. And that increases the Lifetime Value of your customers.
Second, it makes your cash flow predictable.
Third, it reduces Waste!
What do I mean by that? Here’s a great example.
Most of us are used to buying flowers or a flower store. We buy them on Mother’s Day and Valentine’s Day, don’t buy a lot of flowers throughout the year other than on key special occasions. And when we do buy flowers, we make a one off purchase. We certainly don’t buy them on a recurring basis.
Panda and Burkhardt figured out how to change the way some customers buy flowers.
They set up H. Bloom to sell flowers just to people who need them on a recurring basis, changing the behavior of hotels and restaurants and spas.
A typical personal purchase of flowers runs around $29. When a customer has H. Bloom supply them with flowers every 2 weeks on contract, the typical lifetime value of an H. Bloom subscriber is more than four thousand dollars.
H. Bloom can spend more and invest more in sales marketing because they know that when somebody makes a decision to purchase the lifetime value of that customer is so much longer and so much more profitable than if they just buy them on a one off basis.
So one reason that you want to create some recurring revenue is that the lifetime value of your customers go on and expands tremendously.
Staying with H. Bloom, the business is selling these flowers on subscription which makes their business much more predictable. They know how much cash is coming in and going out and when.
And here is the aspect that most business owners don’t give enough attention to: Waste. Wasted time, wasted labor, wasted inventory. The typical flower store that throws out more than 50, 5 0 percent of its inventory every month. Why? Well, because it’s rotting in the fridge and they ordered the wrong amount of flowers.
At H. Bloom they only throw out TWO percent of their inventory each month. They know how many subscribers they have and they know that the Westin in Atlanta wants Gerber daisies, the Marriott, Miami wants roses. And they buy just the number of flowers they need in order to fulfill the subscribers that they have.
Now, you may be saying, OK, but “I don’t have inventory and I don’t have to worry about spoilage.” But if you employ people. You DO have spoilage because those employees come in on a Monday. They expect a paycheck on a Friday. And if you are not able to supply them with work, if you were not able to keep them busy OR if you overwhelm them with work because you have too much, it can be just as costly for your business.
So when we’re creating recurring revenue for your business, it’s really the predictability that we’re creating in cash and operations.
And that predictability and reduced risk adds HUGELY to the Value of your business in the eyes of your banker, and any business brokers or prospective buyers who come looking at your company.
If you want to get a quick summary of the 6 forms of recurring revenue, to see which might be a fit for your business, go to OnDay91.com/revenue . And if you’d like to share your ideas with other value building business owners, take a look at our online Momentum Program for Business Owners who Don’t Want To Get Stuck In Their Business. You’ll find information about it at OnDay91.com/momentum and can decide if it’s a fit for you.
And if you know business owners struggling to get control over their cash and operations, this could be just what they’ve been looking for. So do share it with them. Let’s get as many people we can to stabilize their business with recurring revenue so they can scale up.
We’ll talk soon.
When you look at your personal life, how many subscriptions do you have?
News sources? Music, Movies, and more? How about health supplements? And licenses for computer programs?
I’m Linda Feinholz. I work with business owners who don’t want to get stuck in their business and want more Control, Value and Freedom.
The next commandment is Thou Shalt Develop Recurring Revenue
There are 3 reasons for it.
First, it ties your customers to you so you have the opportunity to offer them more solutions and increase they purchases from you. It’s kind of like a Trojan Horse. And that increases the Lifetime Value of your customers.
Second, it makes your cash flow predictable.
Third, it reduces Waste!
What do I mean by that? Here’s a great example.
Most of us are used to buying flowers or a flower store. We buy them on Mother’s Day and Valentine’s Day, don’t buy a lot of flowers throughout the year other than on key special occasions. And when we do buy flowers, we make a one off purchase. We certainly don’t buy them on a recurring basis.
Panda and Burkhardt figured out how to change the way some customers buy flowers.
They set up H. Bloom to sell flowers just to people who need them on a recurring basis, changing the behavior of hotels and restaurants and spas.
A typical personal purchase of flowers runs around $29. When a customer has H. Bloom supply them with flowers every 2 weeks on contract, the typical lifetime value of an H. Bloom subscriber is more than four thousand dollars.
H. Bloom can spend more and invest more in sales marketing because they know that when somebody makes a decision to purchase the lifetime value of that customer is so much longer and so much more profitable than if they just buy them on a one off basis.
So one reason that you want to create some recurring revenue is that the lifetime value of your customers go on and expands tremendously.
Staying with H. Bloom, the business is selling these flowers on subscription which makes their business much more predictable. They know how much cash is coming in and going out and when.
And here is the aspect that most business owners don’t give enough attention to: Waste. Wasted time, wasted labor, wasted inventory. The typical flower store that throws out more than 50, 5 0 percent of its inventory every month. Why? Well, because it’s rotting in the fridge and they ordered the wrong amount of flowers.
At H. Bloom they only throw out TWO percent of their inventory each month. They know how many subscribers they have and they know that the Westin in Atlanta wants Gerber daisies, the Marriott, Miami wants roses. And they buy just the number of flowers they need in order to fulfill the subscribers that they have.
Now, you may be saying, OK, but “I don’t have inventory and I don’t have to worry about spoilage.” But if you employ people. You DO have spoilage because those employees come in on a Monday. They expect a paycheck on a Friday. And if you are not able to supply them with work, if you were not able to keep them busy OR if you overwhelm them with work because you have too much, it can be just as costly for your business.
So when we’re creating recurring revenue for your business, it’s really the predictability that we’re creating in cash and operations.
And that predictability and reduced risk adds HUGELY to the Value of your business in the eyes of your banker, and any business brokers or prospective buyers who come looking at your company.
If you want to get a quick summary of the 6 forms of recurring revenue, to see which might be a fit for your business, go to OnDay91.com/revenue . And if you’d like to share your ideas with other value building business owners, take a look at our online Momentum Program for Business Owners who Don’t Want To Get Stuck In Their Business. You’ll find information about it at OnDay91.com/momentum and can decide if it’s a fit for you.
And if you know business owners struggling to get control over their cash and operations, this could be just what they’ve been looking for. So do share it with them. Let’s get as many people we can to stabilize their business with recurring revenue so they can scale up.
We’ll talk soon.
.
P.S. Whenever you’re ready… here are 4 ways we can help you stabilize and grow your business:
1. Grab a free copy of our Guide and Checklist
It’s the roadmap to creating a stable, scalable, valuable business that is so healthy you could be absent for ninety days and it would continue to thrive. — Click Here
2. Join the On Day 91 group and connect with business owners who are resetting and scaling too
It’s our new Facebook community where smart business owners learn to get more control of their business, value for their company, and freedom in how they use their time. — Click Here
3. Join our Momentum Program and be a Case Study
We’re putting together a new case study group at On Day 91 this month… stay tuned for details. If you’d like to work with Linda on your business-pivoting and growth plans… just send her a message with the words “Case Study”. — Click Here
4. Work with Linda and her team privately
If you’d like to work directly with Linda and the On Day 91 team to take you and your business to it’s next level… just send Linda a message and with the word “Private”… tell her a little about your business and what you’d like to work on together, and we’ll get you all the details! — Click Here
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