Discover how Adding A Subscription System Can Contribute To Receiving a Higher Exit Price

 

Do you know why I’d rather have a recurring model in my waste management company than sell big “one-time” services?

In this article, I’m going to share the reason why adding a recurring model to your business could contribute to getting a higher valuation price for your waste management company…

So you can finally retire safely, with peace of mind, and a big exit deal.

 

And the best part is that you don’t need to “change your whole business model”, or “invest exorbitant amounts of money in new systems”…

 

It’s very easy and fast and in a moment I’ll show you why.

 

But first let me explain what can cause to a waste company not doing this simple change.

 

You see…

 

Many waste management businesses make the mistake of not having a recurring model. 

 

They base their whole company on “one-time” services…

 

And there’s one big issue with that.

 

I’m not talking about having to do more work, or having to constantly supervise how everything is going…

 

What I’m talking about is that you constantly have to search for new opportunities to be able to keep your head above the water… 

 

Meaning, you are not using the full potential your business could bring.

 

The same thing happened to this waste management business owner I met a few years ago…

 

After talking for a while with him, he started talking about this huge road bump  his business was facing.

 

And the problem was…  he was getting an unfair price for his waste management business. 

 

You see, this owner was trying to sell his company like everybody else.

 

He wanted to secure his company and retire so he could spend time with his family, grandkids, and friends….

 

But that dream got crushed because he was missing several important parts in his waste management business… 

 

One of them being a recurring model… resulting in getting a low price for his company.

 

And since he didn’t want to sell his company for the price these valuation experts offered him…

 

He only had 2 options left…

 

Either, stick to his business his whole life without being able to play golf with his friends, relax and live that calm retired life…

 

Or give his business to his children hoping that decades of work wouldn’t fade like dust in the air. 

 

It was basically like playing the slot machine.

 

Now, as we were talking, I was trying to figure out a way this business owner could step over that road bump…

 

And that’s when I remembered about recurring models.

 

So I decided to tell him about it:

 

“Listen… Since you have to bring in new clients every single month, and it’s getting harder by the day…

 

why don’t we add a recurring model to your business?”

 

“First of all… 

 

Having a subscription system in your business can ensure that next month you are going to bring the same revenue or even more… 

 

And when it comes to selling… 

 

The valuers who give you the sales price will be even more interested in your company because they know they have a safety net, meaning there’s a possibility they could give you a higher multiplier.”

 

After that discussion, and fast forward to today, he decided to implement a recurring model, and now he has a business that’s like a gold mine for valuing experts. 

 

You see… having a recurring model in your waste management business, can put you way ahead of the curve…

 

To the point where it can contribute to getting a massive exit price. 

 

And all because you took this one small step towards bullet-proofing your waste management business.

 

Conclusion:

 

Many waste management businesses don’t have a recurring model…

 

Meaning they have to spend a lot of time, money, and go through a lot of stress to get new clients every month.

 

Apart from that… Not having a recurring model can lower the value of your waste management business. 

 

So, a good way to step over that bump, is to set up a subscription system (which by the way, doesn’t mean “changing your whole business model”).

 

Plus, this recurring system contributes to getting a higher valuation price when it’s time to sell your waste management business. 

 

With that being said…

 

Hope you enjoyed this article!

 

-Samuele Barrili

 

P.S. If you’d like us to take a deeper dive into your waste management business and discover what’s needed to be able to sell your company for a higher exit price, click here.