You Should Find A Franchise Business With Monthly Recurring Revenue
Starting a franchise offers several advantages over going it alone. You inherit a sales & marketing model. You walk into a business where there’s a body of knowledge about what works and what doesn’t. You get the luxury of not starting from scratch.
But let’s face it. You’re also walking into uncertainty.
Finding ways to fill in the blanks and combat the unknown is one of the first big challenges you’ll face as you set out on your own franchise story.
A franchise with recurring revenue options can make all the difference in achieving just that.
What’s Your First Priority When Starting a Franchise?
Let’s start with a question. What’s your top business priority when establishing a new franchise?
Realizing a profit might be the answer many instantly come back with.
While making money is obviously the reason any serious business owner is going to get out of bed in the morning, that’s not the whole answer. Or, at least, it’s not the most accurate answer.
The secret of franchise success isn’t to turn a profit in any given month. It’s to establish a reliable revenue flow. Strategic business growth isn’t pursued in fits and bursts on the back of unpredictable windfalls. It’s planned. It’s data-driven.
And for that to happen, you need predictable revenue.
Recurring Revenue Gives You an Edge
Let’s say you establish a small, reliable stable of continually paying customers within your first few months of business.
Sure, this mightn’t be as exciting as landing a few big sales, but what you’re sitting on at this point is a revenue baseline. This slow-burn of reliable income now gives you a stronger growth planning foundation.
For example, you could determine when it makes sense to invest in new equipment. Or you could arrive at an estimate of when it would make sense to recruit a new employee.
A stable revenue stream also means you’re in a much stronger position to attract investors.
The bottom line is, recurring revenue gives you two crucial advantages when you’re building up your franchise: financial stability and growth potential.
HTPro’s Recurring Revenue Benefits
The smart home industry is perfectly positioned for establishing a recurring revenue base.
Why? Because no matter how sophisticated a technology is, sooner or later it’ll require maintenance or configuration. On top of this, smart home technology is built to be Internet-enabled, meaning it’s ideally suited for remote monitoring solutions.
Home Technology Pros offers two layers of subscription tech support.
The Essential level earns $27.99 per customer and provides customers with remote repair, support, and enhanced administration tools.
Our Enhanced package brings in $49.99 per customer and offers the additional services of proactive monitoring and repair as well as 24/7 phone support.
Making a franchise profitable takes work, dedication, and planning. A recurring revenue stream can make the difference between those first few years being a chaotic financial struggle or a period of careful, planned growth.
As part of training new franchisees, HTPros is committed to providing detailed guidance and data on how best to incorporate recurring revenue into sales and services activities.
We feel it’s a key part of what makes an HTPros franchise one of the best technology business prospects around.
If you’d like more information about starting your HTPros franchise, you can contact us here.