Reoccurring or Recurring Revenue
Dale S. Richards
Expert Bus. Valuator, 30 Yr. CEO Mentor; World Speaker; Author: Value Principles -Increase Value 2x - 5X
Want to learn how to increase your business value with strategic concepts?
Top Ten Tip of Week by Dale S Richards. This week we will address: Strategic –Recurring or Reoccurring Revenue - Reoccurring Revenue vs. One Time Sale
Welcome to Part 6 of 10.
If you like what you read please be sure and like the page.
Reoccurring or recurring revenue is a strategic advantage for companies to raise value. When a productor service is invoiced or collected monthly (or annually), instead of a one-time sale, the company value can increase one to three times. Most software companies have switched to this model with an immediate increase in EBITDA multiplier values.
Reoccurring or Recurring revenue occurs when a company is able to resell products or services repeatedly to the same customer. If you sell an asset try to sell a consumable product or maintenance contract along with the asset.
Financial projections with a large reoccurring revenue base are more stable and increase the confidence and surety that the revenue will happen. More. ..
领英推荐
_____________________________________________
ABOUT DALE S. RICHARDS:
Dale S. Richards specializes in management, marketing, operation optimization & business valuation consulting and is a 30+ year turnaround expert.?He has implemented success concepts into results in 150+ companies. Dale is a Certified Valuation Analyst (CVA) with NACVA, Eight-Year Vistage Chair & International Speaker.?Visit www.successbiznow.com to learn more about Dale.
KNOWLEDGE IS POWER
For the first-ever time, Dale is taking his valuation and business optimization in-person classes to an online format for you to enjoy and implement in your company. Dale guides you through the videos,?The Top 10 Methods?step-by-step, one-on-one, for your entire company. Each video comes with Dale’s personal Powerpoint presentation inside the video. See next level 2X-5X growth by getting access to industry insider secrets in this 10 video set.
Recurring revenue happens more reliably when a company focuses on its culture "facing outward" or the client/customer experience... Often referred to as brand experience. Great post, Dale S. Richards!