I have always been a fan of subscription-based businesses. Whether or not it’s selling digital products or tenants paying rent (yes, property renting is basically a subscription service) there’s something comforting about having a stable income, so you can plan your future with a calm mind, compared to having single sales.
So how do you get started with a subscription-based business? Follow these steps and you should be alright!
1. Product-market-fit
It’s way easier to have success with a product that solves a common problem, instead of having to invent it.
2. Understand your market
Is it a blue or a red ocean, who’s your competition and what are they doing right and wrong?
3. Understand basic finance
Get nerdy about your numbers until you understand your unit economy. Read up on terminology such as CAC, LTV etc.
4. Good software is key
It can be difficult managing a subscription-based service, you have to make sure you implement good software allowing you to be more flexible and an opportunity to test different price models etc. The market is updating all the time, but compared to just a few years ago a lot of new advanced software has emerged that you can get started with. Go to Google.
Start simple
Don’t start off with a super-advanced website. Get your product out there and be honest about the fact that you just opened. You’re most likely going to have to adjust your product (it’s rare someone hits the nail on the head in the first attempt), so wait off on developing a big software setup or purchase a large storeroom. You can do that when you start to convince your first customers.
