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Hello Friend, Subscriber and Exitpreneur, “Our industry doesn’t work that way.” That’s what Tom, a commercial construction owner, told me when I suggested creating recurring revenue. He ran a successful $6M business but started every quarter at zero. Today, 65% of his revenue is recurring. Let me show you how – and why it matters more than you might think. The Revenue Trap Most businesses are built on hope: – Hope that projects keep coming – Hope that clients return – Hope that nothing disrupts the pipeline But here’s the truth: Hope isn’t a strategy. And unpredictable revenue isn’t just stressful – it’s destroying your business value. The $4M Transformation Meet Rachel. She ran a successful IT consulting firm, but every month was a fresh start. New projects. New pressure. New stress. “That’s just how consulting works,” she used to say. Then she made one crucial shift: She stopped selling projects and started selling peace of mind. Instead of: “We’ll fix your IT issues” She offered: “We’ll prevent IT issues from happening” The result? – 80% of clients moved to monthly contracts – Revenue became predictable – Her team could plan ahead – She stopped living project-to-project But here’s the real kicker: Her company’s value tripled in 18 months. The 90-Day Shift Here’s the framework Rachel used to transform her revenue model (and yes, it works in your industry too): Month 1: Package Your Expertise – List your clients’ ongoing problems – Define your ideal solution – Create subscription-worthy deliverables – Price for predictability Month 2: Convert Your Champions – Start with your best clients – Show them the upgraded value – Make it easy to say yes – Let them be your success stories Month 3: Scale Your Success – Use early wins to convert others – Refine your offering based on feedback – Build systems to deliver consistently – Train your team on the new model The “Any Industry” Secret Think your business can’t create recurring revenue? Look at these transformations: Construction Company: Old model: Bid on projects New model: Annual facility maintenance contracts Result: 40% recurring revenue Marketing Agency: Old model: Project-based campaigns New model: Monthly growth retainers Result: 75% recurring revenue Manufacturing: Old model: One-time equipment sales New model: Equipment-as-a-service subscriptions Result: 60% recurring revenue The Value Connection Here’s why this matters: Predictable revenue doesn’t just make your life easier – it makes your business significantly more valuable. Businesses with 70%+ recurring revenue typically command: – Higher profit multiples – Better financing terms – More interested buyers – Greater growth opportunities But even if you never plan to sell, recurring revenue gives you: – Predictable cash flow – Easier planning – Stable team size – Lower stress – Real freedom Next week, I’ll show you how to get your team to embrace this transformation (there’s a psychological trick that makes all the difference). Until then, remember: Your business model determines your business value. Building predictability with you, Brian MacDonald Founder, Exitpreneur™ P.S. What percentage of your revenue is truly predictable right now? Hit reply and let me know – understanding your starting point helps me tailor future insights. Coming Next Week: “The Leadership Trap: Why your best employees keep hitting a ceiling” This Week’s Value Builder: Grab a coffee and do this 15-minute exercise: List your top 5 clients. Next to each, write what ongoing problem they face that you currently solve project by project. Now, imagine solving that problem on autopilot through a monthly service. There’s your recurring revenue model. Next week, we’ll help you pitch it. |
