I don’t know about you, but when I come back from my holiday break in January, I’m instantly filled with dread. Countless email threads and stacks of papers pile up on my desk, and once again, I know it’s time to set the company up for success for the new year.
Have you ever felt that too?
Recently, I’ve had what you might call a “lightbulb moment.” I was reflecting on the early days of my career and noticed two basic models of revenue for people. One of them was people who would have a great year and go home for the holidays, then return to the office and have to do it all over again from scratch. I could see just how mentally exhausting that was for them, and oftentimes, they wouldn’t be able to replicate it again in the proceeding years because of the sheer stress.
The second model I saw were business owners who had annually recurring revenue. With this structure, they knew when they came back in January, what they had built was a cumulative snowball effect of annual recurring revenue. So even if their company didn’t have the best year, they knew they would most likely have a terrific year anyway because it was already “baked into the books”.
Annual recurring revenue is the kind of business and kind of industry you want to be in. When the new year rolls around, I don’t want you to have to face all those stressors because you deserve better.
What kind of business model is optimal for YOU?