Did you know that three out of every 10 small businesses in the U.S. say they likely won’t survive 2021 without additional government assistance, a February survey from the Federal Reserve Bank shows.
Given there are about 30 million small businesses in the US, the survey shows about 9 million small firms are at risk of closing for good this year.
The ones that are less likely to close? Those with a recurring income model.
And the businesses that thrive? They often include more than one type of recurring income.
Which, or which combination, of these recurring revenue models best suits your business:
- Membership communities/programs — whether fixed term or ongoing
- Subscription programs — software (email service provider, web accessibility software, QuickBooks, etc.), paid newsletters (print or digital) or podcasts for example
- Ongoing monthly services such as virtual assistance, copywriting blog articles, lawn maintenance, cleaning services, etc.
- Ongoing sponsorship of podcast, newsletter, on-site advertising, inclusion in resource list, etc.
- Installment/Payment plans which spread cash flow out over X period
- Recurring affiliate income (many shopping carts off this, we offer it, etc.)
- Licensing agreements
Here at TMW, we currently incorporate 5 of the above 9 (we were up to 7 at one time) and have plans to add a 6th in Q4 of this year.
How about you? Which are you currently offering or plan to?