Small businesses doing project work face a feast-or-famine cycle where the phone might stop ringing entirely. The solution: build recurring revenue streams and relationships with enough builders to smooth out the gaps and cover fixed costs when jobs dry up.
It's feast or famine, and right now this area is booming, but that can switch very quickly and we are in a world of hurt, especially when we have debt on the business.
He's moved into the commercial project and none of that is really recurring income. So we joked that there's a 10% chance the phone could never ring again.
I always am looking at how can we create recurring revenue to at least cover our bases. So tomorrow we have no more new jobs, we can cover the bills.
My way of like defending against that is if I go meet enough builders can stabilize what is usually a pretty cyclical revenue stream, but none of it's recurring.
So recurring revenue, we don't have any of that now.
