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
If you’re interested in improving the value of your business, take our questionnaire or contact Colonial Business Brokerage today at 443-982-7332.