How can you improve your ebitda in software business?

Software business became most valuable and profitable may be in the last 20 years.

They have products and they can have millions of copies and millions of customers.

This can help them to make more profit.

To do that, many software companies trying to sell more customers to make more money with their technology based business and teams.

Besides that, they are trying to optimize their costs and operational expenses for make their business more profitable.

But,

Selling more licenses is not only way for make more profit in software business. Because hidden costs and after sales costs are always affect their margins and profits.

To become a more profitable software business in your area, there are some tips and tricks.

First, check your selling prices;

How many customers do you have and how much do you collect as a license fee? What is the average of the recurring income per customers? How can you change your license fees and recurring revenue stream?

Second, check your business 80/20 effect as an income;

AKA Pareto rule: your %80 income coming from %20 of your customers. This is the magic rule for designing a new way for your business. If you check your 80/20 analyze of your income, you will see the new potentials of your business.

Third, check your customers potential;

How many of your customers using all of your products? What is the opportunity for upsell and cross sell? This may help more recurring revenue from existing customer base.

May be there are more ways you would like to share.

Please do not hesitate to comment...