Does this sound like you? You have one strong and profitable month in your business. While the next month rolls around, you didn’t think ahead as to how you can repeat that success and create another profitable month. Then the success of last month is forgotten as you were unprepared and cannot duplicate the same strategies as last time.
You have to start implementing recurring revenue into your business so you can scale strategically and you have to do it before you finish the current month. You should really be planning a few months in advance! Don’t make this newbie mistake. Let’s talk about the steps you can take so you can make more money in your business.
Overused but misunderstood
You probably have so many questions. How do you actually implement recurring revenue into your business? What is recurring revenue? How can I use it to scale strategically? The terms ‘reoccurring revenue’, ‘scale smartly’ or ‘scaling’ in general are overused, and often misunderstood.
Sustainable business model = consistent revenue
One of the things you need to think about is putting a sustainable business model into play. You don’t want to have huge spikes of incoming revenue, and then nothing. That is not a smart or sound way to run your business. Creating a business model will allow you to identify the products or services you want to sell, your target market, and any anticipated expenses. This will allow you to ensure you have the funds to keep your operations running smoothly. A sustainable business model will give your business structure and the foundation it needs to grow consistently.
Recurring revenues happen when you have clients over an extended amount of time
It’s an amazing feeling when you are about to roll out a program or product and you already have people interested in it. You might launch a course or product and experience and influx in sales. But without a long-term plan, the success will slow down after your initial launch.
How do you expect to have money coming in for the next month? You didn’t secure those who were interested into your next offer. You have to have something new to offer them before they click away from your profile or lose interest. It is crucial to be a few steps ahead in your planning. Recurring clients means recurring revenue. Lock them in while you have their attention and you will have customers for life if you have a sustainable business model.
Cash injections provide consistency in the cash flow in your business
As a business owner, you will want to offer a paid in full option with some kind of incentive, savings, or an extra bonus. That is a standard practice and allows for cash injections in your business. Cash injections are quick supplies of money that are usually used to help improve your business’s financial position. This is something that every sustainable business needs to survive. When you have that extra cash on hand, you can reinvest back in staff, ads, and equipment, and so much more.
You need to have money coming in for over a period of time
Cash injections are important but you also need recurring revenue. You will see recurring revenue if you offer your customers payment plans. Payment plans can be scary because you might be worried the person isn’t going to pay but we have seen an extremely high retention rate overall for people keeping their payments. People come in, they get engaged, and they get results that make them want to stay in the program. If you come across any issues with people bailing and not continuing to pay their payment plan then you might want to take a look at the bones of your program and see if there is a way to grab attention and lock in your clients early on.
It’s a win-win situation
Having payment plans is so worth it. You have a third of your clientele paying in full and then you’ve got two thirds that are recurring revenue. Payment plans make things more affordable and accessible. By providing this option you are allowing for your clients to be able to budget their money and for you, you’re building consistent cash flow.
Upscale your business and you won’t have to worry about next months’ bills
I want you to start thinking long-term. Start building your business and stocking it with incredible programs and products that your audience wants and needs. That is how you are going to be able to scale. You’re going to have more and more income coming in if you implement recurring revenue into your business.
Create those payment plans and watch the magic that is recurring cash flow.
If you enjoyed this post and want to consume it in video form, check out my Youtube Training Implementing Recurring Revenue Into Your Business so you can Scale Smartly.
Do you want to make sure you’re launching accordingly, re-enrolling, and getting more people in? If that sounds like something you want then check out my program Ignited Life Coaching.
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