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Create recurring revenue


It’s just too expensive to chase after new customers all the time. If you want to create stability and cash flow for your new small business, you must create a recurring revenue stream. It means looking for ways to charge customers over and over again.

A recurring revenue stream is money coming in every week or every month from the same customers. Banks, for instance, enjoy a recurring revenue stream in the form of your monthly account charges.

Here are three ways your new business can embrace monthly revenue:

– Sell a consumable product. Ideally, your business will sell something customers naturally use up in a week or a month. Bottled water companies serving corporate offices simply show up every week to replace empty water cooler bottles and charge the client.

– Get contracts. An agreement to supply goods or services for a year or more to a customer is money in your pocket. Contracts create predictable income, so you can build your business.

– Initial sale with service plan. Look for ways to support (and charge) your customers beyond their initial purchase. Car dealerships will make money selling you a vehicle and then make more money by keeping you coming back under a service program or for regular oil changes.