In today’s competitive business landscape, SME organisations can no longer afford to stick with the status quo. Time and time again, it has been proven that the most successful small businesses are those willing to innovate and take risks.
However, innovation doesn’t have to mean engineering a new state-of-the-art product or completely revitalising your business model. In fact, it can be as simple as adjusting the way you deal with customers and collect revenue on an ongoing basis.
What is recurring revenue?
Essentially, recurring revenue refers to the portion of your organisation’s income that can be expected to be ongoing and consistent, as opposed to intermittent and unexpected.
The biggest advantage of recurring revenue is that it caters to improved business planning and better cash flow management. When your organisation has a strong vision of what income and profit margins will look like in the future, you’ll be in a much better place to plan ahead and make strategic decisions.
Having a large percentage of your income allocated as recurring revenue also means you can redirect efforts away from the time-consuming and expensive process of winning over new business, and towards more valuable initiatives.
How can I take greater advantage of recurring revenue?
One of the most important initial steps, when it comes to taking advantage of the benefits that recurring revenue can offer, is to give your customers the means to make ongoing payments quickly and easily.
No client would be willing to opt into a recurring revenue model if they believe doing so will cost them time, money or security. However, if you can provide them with an easy and cost-effective solution, they will more easily understand how a recurring revenue model benefits them as well.
Fortunately, there are a number of affordable software solutions that cater perfectly to the needs of businesses looking to streamline and improve recurring revenue collection. Investing in such technology is the ideal way to get on track towards a more efficient way of doing business.