Investor Connect Podcast

Toxic Founders Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Founders will make or break a startup. Here are signs of a toxic founder: They are the loudest people in the group. Their voice trumps everything else. They apply passive-aggressive techniques in managing their team. They can’t admit they are wrong. They have a high impression of themselves and expect others to have the same. They play favorites with some and put others on the hate list. They have no values. They bring out the worst in others rather than the best. They assume the world revolves around them. They make others feel small and insignificant. They don’t take responsibility for their actions. They have low self-esteem. They lack empathy for others. They can’t take feedback from others. They are abrasive with others. Look for these toxic signs in the founder of a startup.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Toxic Cap Table Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Investors funding a startup should review the cap table to determine the health of the startup. Here are signs of a toxic cap table. The founder owns the majority of shares and the cofounders own very little. Without incentive, the co-founders will not give their best effort. The founder owns very little of the company. Similarly, the founder will not find enough incentive to see the business through to exit. Too much equity has been given away in the pre-seed and seed rounds. This leaves too little equity for the Series A investors. The valuation was too high at the pre-seed or seed stage leaving no room for Series A investors to join who have a ceiling on the valuation they will accept. There are too many investors on the cap table. There’s a limit to how many investors can be on the cap table and giving up too many places could be a problem for future fundraise rounds. There’s no option pool for investors at the Series A level or later. This means all compensation to employees will come from cash. This makes it difficult to grow and later scale the business.  There are too many liquidation preferences. This will make it difficult to raise at the later stage rounds. Look for these signs of a toxic cap table.    Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

In this episode of How to Raise Funding, Hall T. Martin engages in a deep dive with Paul, discussing the intricacies and challenges faced during the startup IP filing and fundraising process. They address the crucial need for securing intellectual property effectively to avoid future refiling, and the importance of packaging the IP comprehensively to appeal to investors. Hall offers insightful strategies for structuring fundraiser campaigns, emphasizing the benefits of raising initial small funding at low valuations to build momentum and attract further investment.  They also explore varying fundraising strategies, including setting clear milestones, maintaining realistic valuation expectations, and judiciously expanding the team according to the funding stages. The episode concludes with a detailed look at investor relations programs, term sheets, and leveraging safe notes and convertible notes to streamline the fundraising journey.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. ________________________________________________________________________   For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Toxic Fundraise Round Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. A toxic fundraising round provides funding but makes it difficult for the startup to raise follow-up funding. Here are some signs of a toxic round: Giving up too much equity for an early stage round of funding. This makes it difficult to provide enough capital to future investors. Raising too much funding at the early stage.  This gives up too much equity for the launch leaving little room for growth investors. Raising funding at too high a valuation. The question to ask is, “If you raise the round at this valuation, will you be able to raise the next round at a higher valuation?” If you don’t think you can do so, then you should raise at a lower valuation on this round.  Giving up control of the company at the early stage. This makes it difficult for the founder to grow the business since they don’t control the cap table. Down rounds. This can crush early-stage investors and send a signal to new investors that no one is safe. Taking on debt in the early stage. Follow on investors will want to see their investment go to growing the business and not paying off previous investors or lenders. Some fundraising rounds become toxic and should be canceled.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Signs of a Toxic Investor Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, it’s important to choose the right investors for your startup. Avoid toxic investors at all costs. Here are signs of a toxic investor: They have no values and don’t make clear what they are looking for in a startup. They say they are interested in funding your deal but never take action. There’s no follow-up on terms sheets or diligence work. They continue to drag out the funding for non-substantial reasons. They want a long lockup period while they do their due diligence. Lock-up periods typically range from thirty to sixty days. They have unrealistic expectations about growth and what the company can do. They want a controlling stake in the company. Aside from being an investor, they’re a jerk. Their presence dissuades other investors from joining the round. They have no care about others' interest in the deal but only their own. They have a history of blowing up startups. Look for these signs you may be talking to a toxic investor.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Toxic Startups Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startups can be great or they can be toxic. Investors should look out for these signs you are talking to a toxic startup Broken cap table -- the cap table has dozens of investors on it, each with their own terms and rights. This will be a problem for follow-on fundraising as it shows too many investors with competing interests. Customer concentration -- the startup has one big customer among a few smaller customers. This will be a problem for the founder as that customer will control the pricing, terms, and potentially other aspects of the business. If the customer decides to leave, the company will encounter a major setback. Questionable product market fit -- the startup has a handful of customers wanting their service. It’s unclear if this will lead to the greater portion of the market. Unusual terms in the funding documents -- this could be extraordinary rights held by the investors. The investors and founders should both have a balance of risk and reward in the deal. Founder and investor mismatch on growth plan -- the founders and investors want to grow the business in fundamentally different ways. It’s often the case that one wants to grow organically and the other wants to grow fast. This leads to contentious arguments at every board meeting. Look for these signs of toxicity in any startup you may consider investing in.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Challenges in Scaling a Recurring Revenue Business Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Recurring revenue brings many benefits to a business. There are challenges in scaling a recurring revenue business. Consider these challenges for your business: Manual processes -- these slow down the growth of your business. The more processes you automate the easier it will be to scale your business.   Automated sales, marketing, support, billing, and product delivery. Churn -- businesses with a high churn rate will struggle to scale. Seek to build a sticky business that retains customers for the long term. Unintentional churn -- this comes from failed payments. Build-in tools to reduce failed payments through dunning, automatic card updaters, and other processes to ensure successful payments. Accurate reporting -- this captures the key data points around sales, payments, and other financial aspects of the business. The more you know about your business process, the more easily you can find ways to scale it. Lead generation -- scaling a business requires a greater number of leads and ways to process them. Consider what channels you’ll need to develop to scale your recurring revenue business.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Challenges in Recurring Payments Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Recurring revenue brings many benefits but it also brings a few challenges. Lookout for these issues with recurring payments: Scalability -- traditional billing structures are designed for one-off payments and not recurring. As your company grows it will need a scalable solution for taking payments. Failed payments -- the customer's credit card is maxed out and can't fund any more payments. Consider tools for dunning which is the process of retrying the card over time. Invoices -- you’ll need to move away from manual invoicing to automated invoicing. This requires a system for capturing the details of the invoice including the services charged and payment to be made. Cost of service vs price charged -- to be profitable the business must charge more than the cost of the service. Calculate the unit economics of your business to ensure the pricing is sufficient. Revenue recognition -- revenue must be recognized for accounting purposes. Recurring revenue has strict rules around revenue recognition which are different from one-off invoices. Visibility -- many departments in a company need access to the recurring revenue payments from the customer. Sales, marketing, support, and other groups need to know the current status of the payment for reporting purposes. Consider these issues when setting up your recurring revenue business.    Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

In this episode of Investor Connect, we dive into two distinct yet promising sectors: medical diagnostics and sleep technology. Michael Cormack from Corwin Medical elaborates on the company's efforts to tackle peripheral artery disease (PAD) through innovative diagnostic systems that leverage multi-element ultrasound arrays and AI-based algorithms. He elaborates on the severe impact of PAD, its high mortality rate, and the cumbersome nature of current diagnostic tools like the Doppler Pencil Probe. Michael outlines their unique Ultrasense system, which promises faster, more accurate diagnostics, detailing a robust business model and strong leadership geared towards high-margin revenue and strategic industry partnerships with entities like Medtronic and Philips. He highlights the company's commercialization timeline and financial trajectory towards profitability by 2026, supported by a strong patent portfolio and seed funding efforts. The compelling patient stories and strong market need underscore the critical importance of their work in early PAD detection and intervention.  Following this, we turn our focus to SleepScore Labs with Colin Lawlor, who shares his journey from ResMed to founding an organization dedicated to leveraging AI and data for improving consumer sleep. Recognizing sleep's critical role in overall health, Colin outlines how SleepScore Labs utilizes proprietary sleep data and intervention studies to provide companies with actionable insights and personalized coaching solutions. The importance of sleep for mitigating chronic diseases and optimizing wellness drives their market opportunity, particularly through B2B2C models with partners like Mattress Firm and Terabody. By highlighting their success in Germany, where their platform is reimbursed by insurance without a doctor's prescription, Colin emphasizes the robust, scalable business model ready to capitalize on the growing demand for sleep solutions.  The episode closes with both Cormack and Lawlor discussing their exit strategies and potential for partnerships with industry giants, illustrating the potential for innovation in medical diagnostics and sleep technology. The detailed exploration into these fields gives investors and entrepreneurs critical insights into the paths to market success and the transformative potential of these cutting-edge technologies. Team and Funding 30:14 Q&A and Conclusion

Metrics for Tracking Recurring Revenue Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are several metrics to track the health of a recurring revenue business. Here are some key metrics to know: Cost of customer acquisition -- this calculates how much sales and marketing spend goes into signing up a new customer. Life-time value -- this calculates how much a customer spends on the product over the lifetime of that customer on average. CAC:LTV ratio -- compares the cost of customer acquisition with the lifetime value to create a ratio. A 1:3 ratio is the floor for a successful business. ARR -- annual recurring revenue measures the revenue based on annual contracts. MRR -- monthly recurring revenue measures the revenue based on monthly contracts. Net MRR -- this measures the amount of additional revenue the company generates month over month. Churn -- the percentage of customers who opt out of using the product by canceling. ACV -- Average Contract Value -- this is the amount customers are paying for the product on average. ARB -- Annual Recurring Billings -- this is the amount all customers pay annually. Track these metrics so you understand the current state of your recurring revenue business.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Systems for Selling Recurring Revenue Products Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing Recurring revenue gives the company several sales opportunities. Here are the key systems to install for selling recurring revenue products. New logos -- this process finds new prospects and acquires them as an initial customer. New logos represent an expansion of the customer base by bringing in new users. This customer acquisition system must generate awareness among new prospects. Renewals -- this process seeks to retain existing customers by increasing renewals. Maintaining existing customers comes from the successful use of the product. The renewal process tracks the customers' usage of the product and looks to maintain the customers' engagement through customer success. Customer retention comes from strong customer support. Customer expansion -- this process seeks to sell more services to existing customers. Recurring revenue companies have multiple products to sell. This system proposes additional products to existing customers. A good, better, best product offering helps with the upsell and cross-selling. There are three systems for selling recurring revenue products:  find new customers, renew existing customers, or sell more to existing customers. Consider the system for each one of these for your startup.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

How To Add Recurring Revenue Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In addition to turning your core product into recurring revenue, there’s also adding additional services for recurring revenue. Not every business can turn the core product or service into recurring revenue. The next best thing is to add recurring revenue products into your business. Here are some key add-ons to consider: Support -- consider moving your support process into recurring revenue. By charging a monthly maintenance fee you build recurring revenue and maintain contact with the customer. This gives you the opportunity to upsell the customer to new products and maintain a relationship with them. Training -- consider setting up a series of training sessions that continually train the customer. This works well for enterprise customers who must continually bring new hires up to speed on your product. Since this is an ongoing process, it can be set up as a recurring revenue sub-unit. Upgrades and updates -- consider selling the upgrades on a recurring revenue basis so the customer receives new updates regularly. Since products are often upgraded, this provides an opportunity to charge on a recurring basis.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

How To Integrate Recurring Revenue Into Your Business Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In transitioning your business to recurring revenue you’ll need to make changes to your processes. Here are some key steps in integrating recurring revenue into your business. Reconfigure your product offering so it can be used on a recurring basis. Update your marketing to promote the new product offering. Highlight the benefits of subscription with additional values such as always available and unlimited usage if appropriate. Set up commissions and incentives in the sales team to encourage selling the subscription products. Update your website to integrate the purchase and subscription management into it. Give the customer the ability to control their level of participation and ability to opt in and out online. Set up product usage tracking so you know how customers are using the product. For those who haven’t used it in a while you can reach out with promotional offers to regain their participation. Set Up an online support process to handle customer requests through the website. Move to automated payment systems using online services. By automating the support, payment, and customer services, you can create a more efficient business process.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Example Transitions to Recurring Revenue Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Many businesses can be moved to recurring revenue. Here are several examples of transitioning a business to a subscription. Lawn care -- a repeat business that is often paid for by the hour or the visit. Replace a variable pay for the service each time it is performed to a monthly payment for a fixed amount. Pet services -- pets require grooming, walking, sitting, and other services. Bundle grooming with pet sitting to create a monthly subscription service. Property management -- properties require maintenance, rent collection, and more. Consider bundling the services into one package and charging a standard fee each month for it. Personal grooming -- hair, nails, and other grooming services must be done regularly. Bundle a series of services into a standard price charged monthly on the credit card. Education -- student tutoring, continuing education and more could be charged on a monthly basis. Offer an annual membership in which the student is charged monthly for the service. Extermination services -- extermination is an ongoing service required by many. Consider setting up a standard service that recurs each month and charges automatically for it. These are just a few examples of businesses that could be moved to recurring revenue.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

In this episode of Investor Connect, Hall T. Martin engages with John Ashley, the CEO and co-founder of Auctus Surgical, to discuss their groundbreaking approach to addressing scoliosis. John introduces the company's innovative technologies aimed at improving the quality of life for young girls and women affected by this debilitating condition. With over 30 years of experience in the medical industry and multiple successful startups, John and his team are at the forefront of creating a device that not only prevents the spine from deteriorating but also allows it to grow and maintain flexibility. The conversation delves into the challenges these patients face with existing treatments and the significant market opportunity for a more effective solution. John also shares insights into Auctus Surgical's journey, highlighting key milestones, funding stages, and future plans for commercialization. The episode wraps up with discussions on the science behind their technology, regulatory pathways, and the potential for this innovation to revolutionize scoliosis treatment for both children and adults.  Additionally, the episode features Charlie Kim, a scientific advisor and angel investor for Aridica Corporation, who presents their pioneering automated blood processing technology. Aridica's innovation addresses the labor-intensive and inconsistent manual process of isolating immune cells from blood, offering a push-button solution that enhances speed, quality, and scalability. Charlie shares his enthusiasm and investment in Aridica, highlighting the significant research and clinical applications of their technology. The discussion covers the current market landscape, competitive advantages, and Aridica's strategic roadmap, including plans for product development, clinical trials, and partnerships with major industry players.  For more information, connect with John Ashley on LinkedIn or visit Auctus Surgical's website here: https://auctussurgical.com/. To learn more about Charlie Kim and Aridica Corporation, connect with Charlie on LinkedIn or visit https://aridica.com/. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Steps for Transitioning to Recurring Revenue Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Once you’ve decided to move to recurring revenue you’ll need to set up a plan to switch your business process over to it. Moving to recurring revenue can be done by following these steps: Identify the services that are used repeatedly such as support, replenishment, and updates. Recast these services into a recurring offering. Consider moving your core value proposition to a premium product that requires a subscription. The non-recurring revenue component could be offered as a free product/service to engage the customer. Install payment mechanisms within the product. Notify existing customers of the upcoming change. Set a date for the launch of the subscription model. Start the service with new customers first as they are not yet onboard so there’s no switchover cost. Offer incentives to existing customers to move to subscriptions through discounts and other freemium products. Set an end-of-life for the current product to move the remaining customers to subscription. The process for most companies takes six to twelve months to complete.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Maintaining Recurring Revenue Customers Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In a non-recurring revenue business, one focuses on finding new customers.  Once you have moved to recurring revenue, you’ll also need to focus on retaining existing customers. To retain customers you’ll need to create a strong customer experience. This comes from solving the customer's problem efficiently and building a relationship with the customer. To solve the customer’s problem efficiently, you’ll need multiple price tiers so the customer does not overpay or look elsewhere for what you do not offer. Price the product so the customer finds the best value for their money. Make sure the recurring revenue fits the problem the customer must solve.   It needs to be a repeat problem. Maintain high-quality customer service. The customer in most cases has prepaid for the service and will expect a high level of support. Keep your offerings up to date with the customer’s needs. Recurring revenue models are constantly looking for new features to add and new products to offer. Finally, update your metrics to capture the state of the business. This includes the cost of customer acquisition and the lifetime value of the customer.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

How To Switch to Recurring Revenue Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Businesses without a subscription model can move to recurring revenue. Here are some ways to take your business and make it recurring. Set Up a members-only section on your website. Put premium content into that section and charge a recurring fee to access it. Membership models help you build a community of like-minded people. Once you have a base of customers with a common interest you can upsell to other products. Move the repeat usage of your product to recurring revenue. Set up automated charging as a first step and later move to monthly/annual contracts. It’s not necessary to move the entire business to a subscription. Charge an extra fee for the non-recurring services when they occur. For physical goods, create a subscription box in which the product arrives on a recurring basis. One can adjust the price based on the frequency of usage or how much is included in it. Hardware services such as IT and video surveillance can be moved to recurring revenue. The ongoing support, data storage, and analysis can be placed on a recurring revenue model. This could also apply to IoT devices in which the device must maintain connectivity to the network. Consider these examples when moving your business to recurring revenue.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

Recurring Revenue Business Examples Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the venture world, the recurring revenue business model is the preferred method. The recurring revenue business model provides consistent demand. Here are some example businesses using recurring revenue: Software as a service -- this business model provides access to a software platform in exchange for a subscription fee. It’s one of the most common businesses as software lends itself to repeat usage over time. In addition to providing a service, it can also capture data for additional monetization. Services -- businesses that provide an ongoing service such as lawn care, can also be put into a subscription format. Since the lawn continues to grow and needs continual care, it’s a repeat revenue stream. Membership -- businesses that provide an ongoing membership are ideal for recurring revenue. Examples include businesses with loyalty programs in which one must be a member to gain access to the products and services. Property management -- businesses that provide ongoing management and maintenance of a service fit the recurring revenue model. In this example, the rent must be collected each month and problems resolved with the property. Predictable cash flow and automated payments give the business a competitive advantage over non-recurring revenue businesses.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.

How To Maintain a Recurring Revenue Business Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. After setting up a recurring revenue business model, one must maintain the business. Here are some key steps: Most customers typically start with the basic service or product. It’s important to make available higher-priced services. Follow the good-better-best strategy of three-tiered pricing so you can upsell customers who need more. For those who need less, you can keep them as a customer by selling them a lower-priced version. One can also create a loyalty program. By rewarding customers who use your service, they tend to stay longer and use more of it. Remove the friction in payment. Move from manual payments to automated payments if you haven’t already. Build stickiness with the product by capturing data from the customer’s usage and making it a part of the product you offer. Customers who come to rely on that data will stay with the product longer. Finally, set up a customer service program that can fix problems as soon as they occur. Resolving problems quickly will reduce churn. Consider these steps in building your recurring revenue business ongoing.   Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  Check out our other podcasts here: https://investorconnect.org/  For Investors check out: https://tencapital.group/investor-landing/  For Startups check out: https://tencapital.group/company-landing/  For eGuides check out: https://tencapital.group/education/  For upcoming Events, check out https://tencapital.group/events/   For Feedback please contact info@tencapital.group    Please follow, share, and leave a review. Music courtesy of Bensound.