Net recurring revenue is what investors actually care about when valuing a company. Reduce churn, move customers to recurring models, and increase revenue per client. These three moves raise your valuation faster than almost anything else.
I've actually heard someone I was talking with the other week was saying that sort of that net recurring revenue, which is, you know, reducing the amount of churn that you have, increasing the number, you know, the number of clients that are on a recurring model, increasing your ability to get more money from those existing clients. If you can play around with all of those little KPIs and that calculation of that net recurring revenue, that's the fastest way to increase the company valuation because there's so many things that are already there that you can make kind of minor improvements on today. And, you know, sort of that outside investment really values that metric as they evaluate
How Can You Maximize Your Business Value Before Selling? with Randy Katz Video
