Want to improve your profits? Get paid more often.
You may be aware of the massive shift from perpetual licensing to SAAS offerings. Monthly subscriptions cause initial cash flow issues, but greater profitability in the long term. Not to mention, Wall Street loves the model.
Now, that doesn’t mean you have to switch your business model to a monthly recurring subscription. There are are many ways you can get paid more frequently regardless of your model.
If you run an eCommerce store, setup an email campaign to get people back to the site. If you charge annually for your product, cut the payment in half (or less) and charge twice per year. You’ll get better cash flow, and you’ll receive payments from customers that may have churned six months later. If you only charge once for your product, try charging customers once per year instead. For services, you can add interim maintenance contracts or simply increase the frequency in which you provide your services.
While you can certainly create new offers for your customers, there are usually some small changes you can make to get paid more frequently.