If you’re an entrepreneur or franchise owner then the subject of increasing your revenue is always on your mind. New customers are great, unexpected gains are a luxury, but the golden egg that most sound-minded professionals seek is a growing monthly recurring revenue.
By growing the sales that will remain consistent month after month you create better cash flow levels, can invest in other opportunities, or expand what’s already working at a faster rate. Finding ways to increase your recurring income can be tricky, but here are a few out of the box ideas to jog your creativity.
Stop Giving Away Your Customers
Sometimes, passionate business owners go after new clients so hard that it alienates some of the ones you already have. Everyone wants new customers, but by working on ways to decrease attrition and increase the lifetime value of present customers you create more monthly recurring revenue without new business.
In an article by the Recurring Revenue Network, a valuable point is made about tracking your attrition rate. The chances are that you have a metric or two that monitors incoming and current clients, but you may not be tracking how often someone jumps ship. Taking a detailed look at keeping your customer base happy can go a long way in decreasing your attrition. You can read the article here.
Pay Off the Debt
Starting and growing a business or franchise can be costly, and one thing that is more consistent than recurring revenue is debt payments. Every month that bill comes around at the same time.
Why Not Pay it Down?
Each dollar you save in interest goes immediately to the bottom line, but if you could refinance or pay it off, then you’re just adding to your monthly income. Debt management is one of the many good ideas from a recent post on securitysales.com. You can review the entire article here.
Stay On Top of the Back End
Growth is what every business owner wants and is the best way to generate cash flow, but trying to keep more of what’s already coming in requires you to look at your current processes, accounts payable, suppliers, and other “day to day” areas that cost you money.
Keeping the money coming in the front door can remain the priority while still taking a few days to look at your operation and squeak out a significant dollar amount. A few suggestions to look at can be:
- Insurance (Premiums, policies, health and liability, etc.)
- Accounts Payable (Make sure it’s going to the right place, negotiate rates, etc.)
- Accounts Receivable (See if anyone has slipped through the cracks)
- Suppliers (Call around and get competitor quotes, negotiate prices if you can)
If you take a little time to evaluate what you’re doing with your current income, then you will be able to increase it by implementing these three simple ideas. Increasing your monthly recurring revenue will keep your business thriving and at the same time won’t cost your business a dime in marketing.