Mind your business.
And we mean that in the most encouraging way. After all, you’ve invested so much into getting your company where it is today, it’s essential you take good care of what you’ve created.
One of the reasons for your transition into as-a-service is the long-term profitability of a recurring revenue business. Here are a few tips for building on that model for a profitable future.
It’s actually ok to fire a customer. While it may seem counterproductive to dismiss all the resources you expended bringing them on board, keeping them around could hurt you in the long run. A successful recurring revenue model is built on repeated processes, which allow you to efficiently maximize output while lowering costs. Even a customer contracted at your highest-level service package could be killing your effective profitability rate if they balk at recommended maintenance and service schedules.
Evaluate customers to make sure they share your vision and meet your criteria for success. If they don’t, let them go. Have a procedure in place for a gentle off-boarding process that allows your client to exit smoothly. You never know when they might return or be in a position to recommend your services.
A company culture is built around a set of values and goals that your employees and customers share. It’s the personality of your business. Its appeal can attract people to align with you for the long haul, believing in what you represent. Whether your culture has a traditional management style or a more relaxed team-based approach, your goal is to create an environment where employees and clients can thrive. The results are well worth the effort.
Sounds obvious, but it’s probably the biggest challenge for business owners. Many are so wrapped up in day-to-day operations, it seems impossible to worry about next quarter, let alone next year. Stop and reprioritize. If you don’t plan for the future of your business, who will? Develop 3, 5 and 10-year plans supported by long and short-term goals. By aligning your employees and your clients with those goals, you’re well on your way to building the business you want to own.
To learn more, download part 5 of The Ultimate Guide to As-A-Service. Check out other tips for managed services success in the first 4 posts in our series: