About this episode
John MacInnes pulled his business out of a rut by evolving into a subscription-based model. Here’s how he did it.
MacInnes ran Print Audit, a printer and photocopier management software, for 20 years.
In 2012, the company suffered a rude awakening when its biggest client – who made up more than two thirds of their revenue – dropped their monthly spend by 90%.
MacInnes had to pivot… quickly. He evolved Print Audit to a subscription-based model, focusing on a diverse client base with 80% of expenses ear marked for customer retention. That one move helped MacInnes sell Print Audit for a healthy multiple in 2019.
In this episode, you’ll learn:
- The importance of customer diversification
- Why a subscription revenue with just $1 of profit will keep your company running infinitely
- MacInnes’s 80-20 rule for maintaining revenue
- How Print Audit’s strategic value attracted a buyer
- What it was like to deliver checks to McInnes’ initial investors after he’d sold the company
Print Audit would have been in trouble if MacInnes hadn’t switched to a subscription service. A recurring revenue stream is one of the key drivers a strategic acquirer will look for when purchasing your business – it’s also something that can be added to any type of company. Find your subscription model by completing module 5 of The Value Builder System™. Get started for free right now by completing Module 1.
About Our Guest
A native Calgarian, John MacInnes studied Economics at Bishop’s University, Lennoxville, Quebec. Upon his return to Calgary, MacInnes worked in commercial real estate before he was found by Manvest Inc., where he traversed North America assessing the suitability of a wide variety of businesses for equity investment and recommended accordingly. In 1999, MacInnes founded Print Audit, a developer of remote printer monitoring and print management software. In 2018 Print Audit was acquired by ECi Software Solutions Inc.