One of the primary challenges for new academies, fitness training clubs and other training businesses, is generating enough money during the first couple of years to stay in business. Which is why we encourage our customers at Upper Hand to increase their chances of success by building part of their business model around generating recurring revenue (Thom Holland, 2015). Recurring revenue is when a new customer, who has purchased training one time, decides to come back and train with you again. Below I outline the benefits of recurring revenue and what you need to put a recurring revenue process in place. 5 Benefits of Recurring Revenue: Revenue Projection Visibility - The main benefit of a recurring revenue business is that you will have a better understanding of how much money will come in future months. Compared to one-time payments, recurring revenue is much easier to predict future revenues (Thom Holland, 2015). Easier Sports Budgeting - Due to the ability to forecast future revenues better, you now have a more accurate picture of your monthly expenses and income. This makes budgeting easier and more accurate (Thom Holland, 2015). Improved Processes - When you have recurring revenue as a foundation to your business, streamlining operations and costs associated with your operations is much easier (Thom Holland, 2015). Better Cash Flow - “Cash today, is more valuable than cash tomorrow,” is often the most undervalued and underestimated characteristic of a strong business. Primarily because it is hard to understand. For example, Business A makes $10,000 a month for 12 months, with annual revenue of $120,000. Business B makes $120,000 the first month of the year, then does not make money the rest of the year. Which business is better? Of course there may be a lot of other factors to affect that answer, but the point is, you want cash today, not tomorrow. Another reason you should be accepting online payments vs. chasing down cash. Learn about online payments here. Happier Clients - We often hear from parent clients of training academies and organizations that they simply want better visibility into upcoming training opportunities. When you have a recurring revenue model and process in place to keep your existing clients updated on new training, you make it easier for them to buy your training. The below graphic depicts the flow of recurring revenue in the sales funnel. Get a refresher on how to design your sales funnel here.