There are many types of business income but by far the most attractive to business buyers and investors is long term recurring income.
If your business relies on having to sell something every hour, every day, every week or every year then you are only ever as good as your latest sales figures.
If, however you have recurring revenue in the form of auto-renewing contracts, subscriptions or long term monthly recurring invoices then not only is your business income more stable it is also more interesting to potential buyers and investors.
If your business currently relies on one off revenue, then its time to brainstorm ideas on how you can turn one off sales into long term recurring revenue.
For example, if you are an electrician doing a one-off electrical job then why not sell a monthly maintenance subscription or annual electrical check – both recurring incomes.
If you are a website agency selling websites then get into recurring revenue services like SEO, Paid Search, Hosting or similar recurring revenue products.
Not only does recurring revenue improve the value of the business it will also make your life less stressful. You’ll no longer wake up every Monday wondering how much you’ll sell that week. Instead, you’ll know a portion of your income will be ‘automated’ and come in month in and month out.
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Business Valuations Perhaps the most beneficial thing you can do to maximize the value of your business is to get your books in order. That doesn’t mean they need to show a great performing business but they need to be clear, understandable in good order. Financial accounts will be carefully examined by any potential buyer…
