Every new entrepreneur needs to create solid sources of recurring revenue if they want to grow their business. A steady revenue stream will not only allow you to support yourself as a business owner, but also hire the talent you’ll need to scale your operations.
However, it can be tricky to get those revenue streams flowing, especially if you don’t have a lot of experience in your chosen industry yet and are still building your customer base. Below, members of Forbes Coaches Council share their best advice to help new entrepreneurs build strong, steady revenue streams that their businesses can rely on to fuel growth.
1. Make Sure Every Role Creates ROI
Bake elements of outreach, selling or bringing in new clientele into your new-hire job descriptions. Every person you hire, regardless of their title, should be creating enough ROI to pay their own wage and much more. Create recurring revenue with recurring launches of webinar masterclasses or challenges, for example, that highlight your product or service so you can funnel in new clients. – Betty Kempa, Betty Kempa | Business Coach
2. Tap Into The Power Of LinkedIn
This is a great way to create a pipeline of clients who want to work with you. Make sure your LinkedIn profile and company page convey the benefits of working with you as well as the services you offer. Enhance your presence with content that shows your expertise and build a referral network by engaging with colleagues who offer similar services to a different client base. – Annette Richmond, Career Intelligence Resume Writing and Career Services
3. Collaborate With Established Industry Players
Consider the ecosystem in which the business operates. What recurring needs can you address profitably? Who addresses them today? Collaboration with established industry players, teaming agreements and offering your support where other firms have left customers disappointed will help build solid revenue. Look for ways to work collaboratively in the industry with those who are already established. – Jessica Hartung, Treelight Productions
4. Solve Your Ideal Client’s Biggest Problem
Your current favorite clients and ideal potential clients are your best sources of market data. Find out what their biggest complaint is about companies that do what you do. Then ask, “How much would it be worth to you to have this need fulfilled?” If they say something like, “I’d pay a million dollars!” then you know you are on to something big. Figure out how to make it happen. – Kimberly Svoboda, Aspiration Catalyst
5. Create A Monthly Subscription
Recurring revenue models aren’t ones that initially fit many new businesses as they feel their way. However, almost all businesses can create a monthly subscription. Package an element of your expertise into an audio or video mini-course, offer a monthly resource box or provide monthly group coaching sessions or access to a resource library. Be sure to have upsell options sprinkled throughout. – Laura DeCarlo, Career Directors International
6. Productize Your Proprietary Process And Intellectual Property
We recently helped a financial organization that sells financial instruments to allocators do this. In the “old” model, they provided one-to-one sales services. We turned their intellectual property into a training course with group coaching and a SaaS component that provides annual recurring revenue. – Mike Koenigs, The Superpower Accelerator
7. Pick One Idea And Stick To It
I would tell them to “pick and stick.” This is something that most new entrepreneurs struggle with: They jump from idea to idea and strategy to strategy and often feel burnt out because of it. When you pick one idea and strategy and really stick to it (testing and tweaking it along the way), that is always the fastest path to success and replicable, recurring results. – Lacey Sites, A Lit Up Life
8. Analyze Your Offerings
What is your offering? Are you trying to solve too many things rather than focusing on something that can bring you the most return for the least amount of effort? As a new entrepreneur, what are the best ways for you to raise awareness of your business, services and offerings so that people will want what you have? If you offer a low price, you need to rely on volume. A high price relies on trusting clients. – Denise Russo, School of Thoughts
9. Work As A Part-Time Contractor
Do this a few hours a week to keep steady, low-effort revenue coming in so that you can focus on your business operations and growth with the peace of mind that you’ll have a base income. – Devon D’Andrea, Explore Well-Being Co.
10. Figure Out What You Can Offer For A Recurring Payment
Creating recurring revenue comes down to your business model, and any business can create a business model that has recurring revenue. An accountant can bill monthly instead of charging a one-time fee for tax advice. A coffee shop can sell subscriptions. A consultant can create a membership program. Brainstorm to figure out the services or products you can offer for a recurring payment to build a strong business model. – Krista Neher, Boot Camp Digital
11. Offer Services Through A Retainer Model
Retainers are the best way for service-based companies to create a source of recurring revenue. I have personally found that offering a lower rate in exchange for a longer-term commitment was appealing to many. The retainer model enabled me to plan, hire and scale my business. Those first few retainers served as anchors that allowed my business to have a more stable and consistent source of revenue. – Eugene Dilan, DILAN Consulting Group
12. Produce Niche Content And Charge For It
One of the best ways to create a solid source of income is through content creation. Find a way to produce content for the niche in which you serve your clients, then figure out how you can provide it to them on a monthly basis. Make sure, though, that whatever you decide to produce is economical so that you don’t drive anyone away. – Jon Dwoskin, The Jon Dwoskin Experience
13. Add A New Tool Or Product
Add a new, impressive tool or product to complement your business. Recently, we added a new assessment to our leadership development tools. It wasn’t the latest “thing,” but it got my small team out of our comfort zone and into new learning, which ignited passion and gave us a reason to get back in touch with our biggest fans. Sharing your new knowledge in the form of tools, products or services can be exciting. – John M. O’Connor, Career Pro Inc.