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Build Resilience Through Recurring Revenue

Written by FocusCFO | Dec 2, 2022 5:12:59 AM

With an uncertain economy in the future, it is as important as ever that small and medium-sized businesses build resiliency, and position themselves for long-term growth.

A recent article at CFO.com outlines subscription business models as an excellent option for helping businesses to weather the storm, due to the predictability of recurring revenue.

"Recurring revenue models show their strength when CFOs balance long-term strategy while iterating for market turbulence."

The customer feedback that CFOs receive from recurring revenue models can help forecast future trends and shifts in revenue that can help inform long-term strategy development. Most importantly, feedback like that replaces guesswork with insights. Subscription revenue models allow for dynamic shifts in innovation and execution.

This is how CFOs can play the long game with a recurring revenue model. These models show their strength when CFOs balance long-term strategy while iterating for market turbulence. Renewing existing customers provides a cushion of financial support, the ability to scale quickly is prevalent, substantial customer data identifies paths forward, and management can focus on long-term and lifetime customer value despite real-time economic volatility.

If you're worried about the impact that a potential recession could have on your business, a fractional CFO could be the strategic partner you need to guide you in positioning your business for long-term growth.