Its no secret that to create a sustainable business you need multiple services and products to ensure ongoing income into your business. With Covid, then the cost of living crisis more and more people are turning to how they can create recurring revenue in their business. Not just one off payments but monthly, ongoing spend from your clients. What is more, many recurring income ideas can help you make money in your sleep, when you are off sick or on holiday. Can you really afford not to have reccuring revenue streams flowing into your business each month?
Here are my six top tips for generating recurring revenue in your business:
1. Subscription-based model: Consider offering subscription plans or memberships that provide customers with ongoing access to your products or services. This guarantees a regular stream of revenue.
This could be treats, equipment hire, ongoing dog walks/grooms/training...The list is endless.
2. Upselling and cross-selling: Encourage customers to upgrade or purchase additional products or services by offering complementary or enhanced versions of what they are already using. This increases their lifetime value and generates recurring revenue.
How many of you sell extra things but dont actually tell your clients about them? What things could you upsell in your business?
3. Value-added services: Provide additional services or benefits to customers that go beyond the core offerings. This can include personalized support, exclusive content, or access to premium features, creating a reason for customers to continue subscribing.
Free shipping for orders over a certain cost, what "extras" do your clients get with their training classes?
4. Automate renewals: Implement systems that automatically renew subscriptions or contracts, reducing friction in the renewal process and ensuring a steady flow of recurring revenue.
Automation is key when trying to move forward. Acuity and stripe work well together for this.
5. Customer retention strategies: Focus on building strong relationships with your existing customers by providing excellent customer service, regular communication, and opportunities for feedback. Keeping customers happy and engaged reduces churn and increases recurring revenue.
If you have a high client turnover you need to find out why. Its uncomfortable, but necessary in order for your business to be successful.
6. Diversify revenue streams: Identify opportunities to diversify your revenue streams by expanding your product or service offerings. This can include launching new products, entering new markets, or offering add-on services to your existing customer base.
If covid and the COL crisis taught us anything its that diversification is key for survival.
7. Create referral programs: Develop referral programs that incentivise your existing customers to refer new customers to your business. This not only brings in new revenue but also increases customer loyalty and engagement.
Word of mouth and loyalty is part of the backbone of small business.
8. Continual improvement: Regularly review and refine your offerings based on customer feedback and market demands. By continuously improving your products or services, you can retain existing customers and attract new ones, leading to recurring revenue growth.
Learn to take the rough with the smooth. Both positive and negative feed back are great ways for us to improve what we are already doing.
Conclusion; There is a recurring revenue stream for every business. When I first started looking at implementing it in my own business I had a mind block that it wouldnt fit one area of my business and so discounted it. After falling ill and losing income I was forced to take another look at it and realised that there were many things that could be implemented in order to generate it. As a result this has helped create a buffer and long term sustainability. Take a look at your business today. What ideas from the blog post could you make work for your business?