“When you think about your business, whether you intend to sell it or not, I think you’ll agree that everyone wants their business to be more valuable.” – Aryeh Sheinbein
But you also want to think about longevity, stability, and things of that nature.
Today’s episode is a topic I’ve been meaning to bring on the show for quite some time. It’s a topic that I talk to many companies and business owners about, regularly. It’s a strategy that helps you add value to your business and allows you to think about things in a more stable environment.
In this episode, we’ll cover:
- Increasing the value of your business through recurring revenue or a subscription model
- Is your business profitable? Calculating your MRR (monthly recurring revenue) and the lifetime value of your customer
- Why the lifetime value of your customer needs to be 3 times greater than your CAC (customer acquisition cost)
- Calculating your Churn Rate – the number of customers/subscribers you loose every month
- Do you know what is your margin is?