Hello Friend, Subscriber and Exitpreneur, “Our industry doesn’t work that way.” That’s what Tom, a commercial construction owner, told me when I suggested creating recurring revenue. He ran a successful $6M business but started every quarter at zero. Today, 65% of his revenue is recurring. Let me show you how – and why it matters more than you might think. The Revenue Trap Most businesses are built on hope: - Hope that projects keep coming - Hope that clients return - Hope that nothing disrupts the pipeline But here’s the truth: Hope isn’t a strategy. And unpredictable revenue isn’t just stressful – it’s destroying your business value. The $4M Transformation Meet Rachel. She ran a successful IT consulting firm, but every month was a fresh start. New projects. New pressure. New stress. “That’s just how consulting works,” she used to say. Then she made one crucial shift: She stopped selling projects and started selling peace of mind. Instead of: “We’ll fix your IT issues” She offered: “We’ll prevent IT issues from happening” The result? - 80% of clients moved to monthly contracts - Revenue became predictable - Her team could plan ahead - She stopped living project-to-project But here’s the real kicker: Her company’s value tripled in 18 months. The 90-Day Shift Here’s the framework Rachel used to transform her revenue model (and yes, it works in your industry too): Month 1: Package Your Expertise - List your clients’ ongoing problems - Define your ideal solution - Create subscription-worthy deliverables - Price for predictability Month 2: Convert Your Champions - Start with your best clients - Show them the upgraded value - Make it easy to say yes - Let them be your success stories Month 3: Scale Your Success - Use early wins to convert others - Refine your offering based on feedback - Build systems to deliver consistently - Train your team on the new model The “Any Industry” Secret Think your business can’t create recurring revenue? Look at these transformations: Construction Company: Old model: Bid on projects New model: Annual facility maintenance contracts Result: 40% recurring revenue Marketing Agency: Old model: Project-based campaigns New model: Monthly growth retainers Result: 75% recurring revenue Manufacturing: Old model: One-time equipment sales New model: Equipment-as-a-service subscriptions Result: 60% recurring revenue The Value Connection Here’s why this matters: Predictable revenue doesn’t just make your life easier – it makes your business significantly more valuable. Businesses with 70%+ recurring revenue typically command: - Higher profit multiples - Better financing terms - More interested buyers - Greater growth opportunities But even if you never plan to sell, recurring revenue gives you: - Predictable cash flow - Easier planning - Stable team size - Lower stress - Real freedom Next week, I’ll show you how to get your team to embrace this transformation (there’s a psychological trick that makes all the difference). Until then, remember: Your business model determines your business value. Building predictability with you, Brian MacDonald Founder, Exitpreneur™ P.S. What percentage of your revenue is truly predictable right now? Hit reply and let me know – understanding your starting point helps me tailor future insights. Coming Next Week: “The Leadership Trap: Why your best employees keep hitting a ceiling” This Week’s Value Builder: Grab a coffee and do this 15-minute exercise: List your top 5 clients. Next to each, write what ongoing problem they face that you currently solve project by project. Now, imagine solving that problem on autopilot through a monthly service. There’s your recurring revenue model. Next week, we’ll help you pitch it. |
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Hello Friend, Subscriber and Exitpreneur, “Your business is too dependent on you.” That’s what the buyer told Mark right before walking away from his $7M technology company. His revenue was strong. His team was solid. His profits were impressive. But there was a problem: Every major decision needed his input. Here’s the truth most business owners never learn: The size of your business matters far less than how it runs without you. Let me show you why. The 5X Difference Last quarter, I watched...
Hello Friend, Subscriber and Exitpreneur, Let me ask you a question: How many “vital” business decisions did you make this week? You know, the kind where your team said, “We really need your input on this.” If you’re like most successful business owners I meet, the answer is “too many.” Last week, I sat with Sarah, who runs a thriving $3M marketing agency. Great team. Strong profits. Impressive client list. But she hadn’t taken a real vacation in three years. “I can’t,” she told me....