Finding Your Subscription Model

Posted by & filed under Build Business Value, Building Business Value, Business Owner, Exit Planning, Seller Articles, Seller FAQ, Selling a Business, Valuation, Value Builder System™.

John MacInnes ran Print Audit, a printer and photocopier management software, for 20 years.

In 2012, the company suffered a rude awakening when its biggest client – who made up more than two thirds of their revenue – dropped their monthly spend by 90%.

MacInnes had to pivot… quickly. He evolved Print Audit to a subscription-based model, focusing on a diverse client base with 80% of expenses ear marked for customer retention. That one move helped MacInnes sell Print Audit for a healthy multiple in 2019.

In this episode, you’ll learn:

  • The importance of customer diversification
  • Why a subscription revenue with just $1 of profit will keep your company running infinitely
  • MacInnes’s 80-20 rule for maintaining revenue
  • How Print Audit’s strategic value attracted a buyer
  • What it was like to deliver checks to McInnes’ initial investors after he’d sold the company

Listen Now

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