Right now is a great time for you to look at your revenue models and what your agency is doing with them. My Growth, Leadership, and Management Tip this month is about resetting for a new financial year by getting clear around revenue, pricing, and business valuation.
Your challenge is to make sure your recurring revenue is meeting fixed costs. That revenue is mainly coming from your property management business. I’ll give you examples of how this model specifically works in real estate.
I’ll show you how your property management department can decrease your debt and contribute to fixed overheads with a subscription payment model. Then we’ll look at how the recurring revenue model scales using the subscription model to generate additional revenue.
We’ll break down the percentages of your revenue streams from recurring revenue and from sales, I’ll explain the benefits of tiered fee structures, and I’ll show you how all of this works together to increase that revenue.
Resetting for a new financial year requires that you understand exactly what you’re doing with revenue, pricing and valuation. Getting this formula right will substantially drive the overall valuation of the business.
I hope you’ve enjoyed this month’s Growth, Leadership, and Management Tip, and I look forward to seeing you here again next month.