Mike Andes argues that one-time job income traps your business. Recurring revenue reduces key-person risk, makes the company run without you, and scales easier. Even if you never sell, higher-quality revenue gives you freedom.
Now, the next stage on the continuum, as we increase the quality, so high quality over here, low quality revenue over here. I know you can make a lot of money doing one-time jobs and you can make a lot of revenue doing one-time jobs, but the quality of the revenue is what I want to focus on today because the quality of the revenue gets me a higher enterprise value. And a lot of times people that do one-time jobs, they'll reconcile the fact that they don't add other types of revenue or higher quality revenue into their business because they say, I'm not going to sell my business. If you're not selling your business, still believe it is in your best interest to try to move up this continuum and add higher quality revenue to your business, even if you don't sell. Why? Because if you get injured, if you want to go on a vacation, you want the business to run without you, you want to hand it off to a general manager or your kids, it's going to be a whole lot easier to do that if you have a higher quality revenue. And the reason that a business gets a higher enterprise value is because it's easier to hand off. There's less keyman risk. It's easier to scale. It has this higher level of quality of revenue in the business.
