Are you trying to come up with computer business ideas that will get you the stable revenue you need to survive, even in challenging economic times?
Many new and inexperienced computer business owners spend most of their time and energy chasing down one-shot-deal customers and keeping their fingers crossed that these clients will call them again in a few months or a few years. If you are relying on this same business model (or lack thereof!), you are headed down a dead-end street.
You can’t build a successful computer business around the needs and wants of one-shot deal customers. First of all, it is just not financially viable to spend all that time and money acquiring customers for one-shot deal transactions. But secondly, you are going to drive yourself crazy waiting for the phone to ring and constantly find yourself scrambling to make ends meet. The answer to your problems is to get steady, high-paying clients on lucrative annual service agreements.
Consider the following 3 computer business ideas about why service agreements are the way to go if you want a more stable, predictable, profitable client base and business. 1. Annual Service Agreements Give Your Business Stability.
When you scrap the one-shot deal, short-sighted computer business ideas and pursue more lucrative annual service agreement clients, you give your business the recurring revenue, stability and predictability that it so desperately needs. Annual service agreements are also vital prerequisites to have in place when contemplating major expansion, such as hiring new staff or opening up a new office. 2. Service Agreements Help You Plan an Exit Strategy.
You might think the beginning of the life of your new business is not the time to plan its end. But there is no more perfect time! If you ever want to be able to sell your computer business -- for example, if you move, get bored, get burnt out, or get disabled -- the list of your clients on annual service agreements become one of your company’s few tangible assets. Of course, the overall valuation of your company is best left to an expert, such as your trusted accountant. So make sure you do this as you start to set up your service agreement program and business plans. 3. Understand the Math Behind Service Agreement Clients.
As an example, if your company has been averaging $200,000 in pure consulting revenue over the last three years and ¾ of that ($150,000) is locked in on annual service agreements, this is a pretty nice asset for someone looking to acquire at a multiple of your overall gross service revenue. As you consider other computer business ideas besides those based on on-going service agreements, think of the flip side of this concept: how much will a competitor pay to purchase a list of one-shot deal customers that only call once in a while? Even if your company has some decent revenue track record, without annual service agreements, you don’t have that $12,500 head-start on revenue each month ($150,000/year divided by 12 months). When you don’t have annual service agreements, you will be literally starting from scratch every single month.
At the end of the day, or the end of your interest in owning your own business, your list of service agreement clients becomes a very valuable, tangible asset and one that should be continually cultivated and strengthened.
With all the compelling evidence in support of service agreements, why would you possibly consider computer business ideas rooted in other concepts?
In this short article, we talked about 3 reasons why you should build your computer business around the needs of your clients on service agreements. Learn more proven computer business ideas
that can help you get great, steady, high-paying clients now at the attached link.
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