How to build subscription businesses

82% of the businesses fail due to lack of cash

Solopreneurs, freelancers and small businesses should look at subscription for revenues, as it is a ‘forever transaction’. 82% of the business fail due to the lack of cash flow.

Robbie Baxter is the author of ‘The Forever Transaction’. She offers that to build recurring revenues business should do four things. One, committing to a forever goal or mission for your customers. Two, know your best audience, who get the most value and are willing to pay the price. Three, experimenting to get a minimum viable product to attract and retain customers. Four, calculate the return on investment for the free or premium business models.

She writes, “In a nutshell: If it’s a membership business that can deliver something useful or delightful to someone’s door or via your computer, that’s a very good business to be in right now.”

India has the right mix of tools and technologies to build such businesses. Paytm, Instamojo, Explara, Razorpay, Go Daddy, Google, Freshworks, Referens are the local companies, which can help build subscription businesses.