ExitAdvisor Blog

How to Turn Repeat Customers into Subscribers

Many people mix up re-occurring and recurring revenue, but one is much more valuable than the other. 

Re-occurring Revenue

Re-occurring revenue comes from customers that have a re-occurring need for whatever you sell and buy from you on an unpredictable yet regular basis. 

Imagine a health food store. Customers come in to replenish their supply of vitamins when they run out. The owner is never quite sure when a customer will be back, but she’s pretty sure they will return when they run low …

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How did you come up with that number?

Many business owners try to determine the price of their business based on how hard they have worked over the years. But the market will tell them that the value is really what it is worth to a new owner in the future. As a result, there are many factors to examine – equipment, employees, market position, technology – the list goes on and on. Business owners should get a business valuation performed by a professional to get a real sense of market value.

Let's talk confidentially about your bu…

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4 Reasons Why It’s Better to Own a Big Chunk of a Small Company

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Is it better to own a big chunk of a small business or a minority stake in a big company? 

It’s one of the fundamental questions all owners must wrestle with. Owning a relatively small slice of a big pie has worked out well for both Elon Musk and Jeff Bezos, who recently traded places on the list of the world’s richest person. Musk still owns around 20% of Tesla, and Bezos controls about 10% of Amazon, so they both have chosen to sell most of their company to fund their ambitions. The success o…

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Business Owners who “Draw a Line in the Sand” and Refuse to Update their Operations

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Successful business owners are always learning and finding new ways to improve their operations.  But business owners who "draw a line in the sand" and close the door to new methods, new technology and updated equipment can see a drop in market position, revenues and profitability.

As a result, buyers for these businesses will only offer a discounted price, and oftentimes a heavily discounted price.

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How Your Age Shapes Your Exit Plan

Your age has a big impact on your attitude toward your business, and your feelings about one day getting out of it.

For example, one person who runs a boutique mergers and acquisitions business refuses to take assignments from business owners over the age of 70.

He has found that septuagenarians are so personally invested that they can rarely bring themselves to sell their business – frequently calling off the sale halfway through, claiming they just wouldn’t know what to do with themselves …

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How to Create a Recurring Revenue Model That Appeals to Customers

Have you struggled to identify a recurring revenue model that will work in your business?

If so, you’re not alone.

Most owners understand the benefits of recurring revenue, such as predictable cash flow and an increase in their company’s valuation, but struggle with where to start. Just changing your pricing from a one-time transaction to a smaller, recurring fee does not make a sticky subscription model.

The first step of creating a recurring revenue model for your business has nothing to …

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10 Resolutions That Will Boost the Value of Your Business

Finally, 2020 is in the books.

Good riddance.

If your goal is to build a more valuable business in 2021, here are some New Year’s resolutions to consider:

  1. Stop chasing revenue. A bigger company is not necessarily a more valuable one if the extra sales come from products and services that are too reliant on you to deliver them.
  2. Start surveying your customers using the Net Promoter Score methodology. It’s a fast and easy way for your customers to give you feedback, and it’s predictive of y…

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The Most Critical Factor in Achieving Your Goals May Surprise You

As we roll through the fourth quarter of the year, you may be starting to consider your business goals for next year.

Given how 2020 has gone, maybe your primary ambition is to survive in 2021. Perhaps you’re going to create a recurring revenue stream or finally hire that general manager. Or maybe you’ve decided to start preparing for an exit.

Whatever your goals are, the most important thing you can do now is write down your plan to achieve them.

A Revealing Study

This point was driven ho…

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We know what to do, we just don’t do what we know!

We all hear a lot about what we SHOULD BE DOING from consultants, advisors, business coaches -- even our spouses. But for whatever reason, we don't always do what is best for us.

Business owners' careful planning for leaving their business is crucial to getting top dollar or smoothly passing it on to a relative. The Exit Planning process can take years and it is wise to seek professional advice in identifying the important issues and taking the right steps.

Contact us to talk confidentially …

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5 Reasons Why Your Business Is Too Dependent On You

 

If you were to draw a picture that visually represents your role in your business, what would it look like? Are you at the top of an organizational chart, or stuck in the middle of your business like a hub in a bicycle wheel? The Hub & Spoke model is a drive that shows how dependent your business is on you for survival. The Hub & Spoke model can only as strong as the hub. The moment the hub is overwhelmed, the entire system fails. Acquirers generally avoid these types of managed businesses …

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