In our essay “Eight Reasons Every Business Needs Recurring Revenue,” we discussed a major benefit of membership and subscription business models:
The ability to even out demand for your products or services.
Having predictable cash flow each month give your business stability. This let’s you work on your business while spending less time stalking your bank account for deposits.
Three benefits of leveling out demand for your products and services include:
1) Predictability
When you have a recurring component to your business model, you can forecast. You can start with a base to grow from rather than beginning each month at zero and hoping for the best. You can predict which customers are going to continue purchasing your products and services. You can also account for those that might not stick around.
2) Risk Reduction
Even the most seasoned entrepreneur is not immune to the anxiety of the unexpected. Economic downturns, seasonal buying patterns and unexpected sales spikes or dips can send businesses into a tailspin.
With recurring revenue, businesses experience insulation from the jumps and dives of a volatile sales model. Your business will not only be able to survive a market downturn, but be able to grow during that time.
3) Stability
By leveling out demand, you can account for overhead and operational needs each month. Employees are not concerned if they will be paid on time. Customers don’t experience delays in delivery of your product or service. Your business just works as you have always imagined.
Consistency translates into employee and customer loyalty. The trickle down effect translates to stability for your business.
Ready to stop playing revenue roulette?
Does the unpredictable nature of lumpy revenue keep you from growing your business?
Would you sleep better knowing your company is insulated from the economic forces?
At Diffactory, we guide you through the process of leveling out demand. We are experts in recurring revenue. We’ve experienced firsthand how it can ignite growth.
Step away from the mailbox, pick up a phone, and give us a call at 816-287-2010 or contact us right here.