The Art of Recurring Revenue: Lessons from Scaling a 5,500+ Employee Business

The Art of Recurring Revenue: Lessons from Scaling a 5,500+ Employee Business

Today, I’m going to show you how to build a predictable, scalable revenue model that frees you from constantly chasing new customers.

If your business relies on one-off sales, you’re in a constant uphill battle.

Without a recurring revenue system, your business stays stuck in survival mode—never quite reaching the stability needed for true scaling.

The biggest mistake? Thinking more sales automatically means more growth.

Growth comes from retaining customers, automating your sales process, and building a seamless delivery system that allows you to scale efficiently.

If your business still relies on chasing one-off sales, you’re stuck in survival mode!

These four strategies will show you how to turn inconsistent sales into sustainable, long-term growth.

  • Identify and leverage your competitive advantage – Stand out by defining what makes your business unique.
  • Build a scalable sales engine – Create a repeatable, automated process that drives predictable revenue.
  • Design a predictable delivery system – Eliminate bottlenecks to ensure smooth scaling.
  • Craft a hook that converts and retains customers – A strong value proposition increases customer retention.


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Identify and Leverage Your Competitive Advantage

Most businesses don’t fail because of a lack of effort—they fail because they blend in.

If your business doesn’t have a clear competitive advantage, you’ll always be competing on price, struggling to stand out, and losing customers to businesses that have defined their unique value proposition.

The truth is, your competitive edge isn’t just about being “better”—it’s about being different in a way that matters to your customers.

Companies that dominate their industries don’t necessarily have the best product or service; they simply position themselves in a way that makes them irreplaceable.

"The biggest mistake I see is that business owners look at the sales funnel as just a transaction. What you're actually selling as a business is trust."

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What Makes a Competitive Advantage Strong?

A real competitive advantage has two key elements:

  • It is something your customers actually care about. If your differentiation isn’t solving a major pain point, it’s not an advantage—it’s just noise.
  • It is difficult for competitors to replicate. If anyone can copy it, it won’t keep you ahead for long.

"Many business owners come back to me and say, ‘Well, our advantage is that we’re fast, we’re cheaper, we provide better customer service.’ And quite frankly, yes, those things are important, but I think those types of qualities of a company are really given. That’s not unique."

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The most successful companies build a business model that makes them the obvious choice. The goal isn’t to compete—it’s to position yourself in a category of your own.

How to Find and Strengthen Your Competitive Advantage

1️⃣ Start with Your Market Positioning

Where do you stand in your industry? Most businesses either:

  • Compete in a "Red Ocean" (crowded, price-driven market), or
  • Carve out a "Blue Ocean" (where they define their own space).

"Are you competing in a space where there’s tremendous competition, mostly based on price? Or are you able to create an environment where you're not worried about your competition? You’re just focusing on yourself and your customers."

Ask yourself: Are you competing on price, or are you competing on value? The best businesses focus on perceived value—not just cost.

"If you want to increase your customer perceived value, you put things around your service or product that increase the value for that same service and product, and you can increase the price."

✅ TIP: Identify what truly differentiates your business. Is it your process, your customer experience, your technology, or your unique approach or something entirely else?        

2️⃣ Define Why Customers Choose You (Or Why They Should)

Too many businesses assume they know their competitive advantage—but have never actually validated it. The best way to uncover your real competitive advantage is to ask your customers:

  • What made you choose us over competitors?
  • What was your biggest hesitation before buying?
  • What made you trust us?

Your answers will reveal patterns—and those patterns will show you what customers truly value about you.

✅ TIP: Send a survey or have direct conversations with your top customers. Look for recurring themes in their answers.        

3️⃣ Make It Impossible to Compete with You

Once you know what makes your business stand out, the next step is to reinforce that differentiation so strongly that competitors can’t copy it.

"If you’re working in your business, essentially what you’re doing is you’re looking at your cell phone 24/7, you’re checking your emails constantly, you’re really just trying to put out fires all the time. You can’t focus on competitive strategy and competitive advantage. But if you’re working on your business, you’re really planning and strategising—what are those things that you can add to your business that are really differentiators?"

This can mean:

  • Building a brand that people emotionally connect with.
  • Delivering a unique experience that competitors don’t offer.
  • Creating a product ecosystem that locks customers in (think Apple or Amazon Prime).

The businesses that win long-term aren’t just better—they are different in a way that is impossible (or very hard) to replace.

✅ TIP: Look at your business through the lens of long-term differentiation. How can you make it harder for competitors to match what you do?        

Build a Scalable Sales Engine

A business that depends on manual sales efforts will always struggle to scale.

If your revenue is unpredictable and your team is stuck in a cycle of inconsistent sales, it’s a sign that your sales engine isn’t scalable.

The key to sustainable growth is a repeatable, automated sales process that generates predictable revenue without relying on constant manual outreach.

"We had really done sales like everyone else—organically, trade shows, just word of mouth, getting referrals, etc. My mission was to create a platform that was predictable, where we could understand how many prospects we were going to get every single day, how many leads, how many quotes were going to go out. It’s basically a sales funnel—but a very predictable one."

Standardise and Automate the Process

A great sales process isn’t something you reinvent every time you bring in a new lead—it’s a repeatable system that works consistently.

Before automating, it’s critical to first refine your process manually to see what works and what doesn’t.

"When you’re automating, you may not see the fine details. Once we saw areas where we understood how the process worked, how we wanted it to work seamlessly and flawlessly, those are the areas we automated."

Your system should answer:

  • How do leads enter your pipeline?
  • What steps convert them from interested to committed?
  • How can the process be automated without losing personalisation?

✅ TIP: Before automating, map out your sales journey—from lead generation to conversion—so that every step is intentional.        

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Reduce Response Time—Speed Wins in Sales

One of the biggest factors in closing a deal is how fast you respond to an interested lead.

"When you get a lead, how quickly can you get that person on a call? That time is just absolutely important. That is one of the critical factors of success and failure. When you get a web lead, again, in how many minutes can you get on the phone with that person?"

Your sales engine should be designed to:

  • Engage leads immediately before they lose interest.
  • Eliminate friction—the easier it is to buy, the faster the sale happens.
  • Speed up decision-making with clear, structured steps.

✅ TIP: Track how long it takes you to respond to leads today—then set a goal to cut that time in half.        

Create a Lead Flow That Runs Itself

The best sales teams aren’t manually sourcing every lead—they have a system that brings in qualified prospects consistently.

This might include:

  • Cold outreach that doesn’t feel cold—highly personalized email and LinkedIn strategies.
  • Event-based lead generation—webinars, live Q&As, and partnerships.
  • Data-driven targeting—focusing on industries and personas that convert at the highest rate.

"I took it upon myself to really create this entire lead generation engine. We have a data team compiling accurate data. Most data that you get from sources is about 25% inaccurate. Then we developed 30 proprietary ways of how to get through to your ideal prospect."

✅ TIP: Identify at least two new lead-generation strategies that don’t require constant manual effort—and start testing them.        

Optimise for Conversion, Not Just Outreach

A scalable sales engine isn’t just about getting leads—it’s about converting them efficiently.

"You've got to make your initial messaging as short as possible. You do not want to overwhelm anyone with a lot of words. People will just tune out. What we strive to do is really place that hook, bring them into our funnel, and talk to them."

Every part of your outreach and follow-up should be:

  • Short, clear, and engaging—people decide in seconds if they’re interested.
  • Value-driven—focused on solving their problem, not just selling your product.
  • Tied to a compelling call-to-action—with an easy next step.

✅ TIP: Review your first outreach message today—if it’s longer than two short paragraphs, refine it to be more direct and focused on value.        

How to Build a Scalable Delivery System

Most businesses struggle with delivery because they try to scale before standardising their processes.

If your team is constantly reinventing the wheel, you’ll hit roadblocks as you grow.

"Business owners who don’t have a defined process, who just wing it or expect things to work out, will fail. If you’re not intentional about how you're doing things, writing it down, and identifying the bottlenecks, growth will expose those weaknesses fast."

✅ TIP: List out every step in your delivery workflow—from customer onboarding to final delivery. Identify where delays happen most often.        

Use Systems, Not Just People

A common mistake is relying too much on individuals instead of repeatable systems.

If your success depends on key people instead of scalable processes, you’ll struggle when demand increases.

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"Are you working on your business or just in it? If you’re constantly in the weeds, putting out fires, and handling every issue manually, you don’t have a scalable system—you just have a job that never ends."

A well-structured delivery system ensures that:

  • Tasks are clearly defined and don’t rely on specific individuals.
  • Technology and automation handle repetitive processes.
  • The business runs smoothly without daily manual oversight.

✅ TIP: Identify one manual process in your business that can be automated or streamlined. Automate it!        

Measure the Right KPIs to Track Delivery Performance

If you’re not tracking how well your business delivers, you’ll never know where the weak points are.

Businesses that scale effectively monitor operational efficiency and make constant improvements.

"If you’re not measuring it, you’re never going to be able to manage it. We meet every week for 30 minutes to review our dashboard—what’s working, what’s failing, and where we need to adjust. If something is red, we fix it that week."

Key metrics to track:

  • Time to delivery—how long does it take to fulfil an order or complete a service?
  • Customer satisfaction scores—are customers happy with the process?
  • Internal efficiency—how many steps does it take to complete a task, and can it be optimised?

✅ TIP: Set up one key performance indicator (KPI) to track delivery efficiency this week.        

Gather Customer Feedback & Adapt

A predictable delivery system is never static—it evolves as you scale. The best businesses collect feedback and continuously improve their processes.

"We talk to our customers all the time because they’re the ones experiencing the system we built. If you’re not listening, you’re missing huge opportunities to improve and scale smarter."

Businesses that thrive don’t just build systems—they refine them. Small tweaks based on feedback can remove friction, reduce churn, and improve customer satisfaction.

✅ TIP: Reach out to your top customers and ask, “What’s one thing we could improve about your experience?”        

Craft a Hook That Converts and Retains Customers

Attracting customers is one thing—keeping them engaged and converting them into long-term buyers is another.

The reality is, most businesses fail to stand out, not because they lack value, but because they fail to communicate it in a way that captures attention immediately.

"If you don’t have a strong hook, customers won’t see the unique value your business provides. The competition is fierce, and if your messaging doesn’t land in the first few seconds, you’re already forgotten."

A hook is more than just a catchy tagline—it’s a compelling value proposition that immediately answers:

  • Why should customers care?
  • How is your offer different from everything else?
  • What makes you impossible to ignore?

If your messaging sounds like everyone else, you’ll struggle to attract and retain the right audience.

How to Craft a Hook That Sticks

Your first impression matters.

Whether it’s an email subject line, a LinkedIn message, or a landing page headline—you have a few seconds to capture attention.

"Your subject line has to be powerful. Look at your own LinkedIn inbox—most messages sound the same. They all follow the same template, and because of that, they get ignored. The first thing I do is think, ‘How can I do the opposite?’"

If you sound like everyone else, your audience will assume you offer nothing new.

✅ TIP: Look at your current website, outreach messages, or ad copy. Would it make you stop and pay attention? If not, rewrite it with more contrast and clarity.        

Test Multiple Angles to See What Resonates

The best hooks aren’t just created—they are tested.

What you think will grab attention might not be what actually works in the real world.

"We developed about 30 proprietary ways of how to get through to our ideal prospect. Some of them were traditional—email, LinkedIn, and calling. But others were completely different. For example, we once used physical cards with voice recordings inside to immediately stand out."

Think beyond traditional approaches—what can you do that’s different?

✅ TIP: Test two different versions of your messaging this week. Run A/B tests on emails, LinkedIn outreach, or ad headlines.        

Your Hook Should Focus on the Customer, Not You

One of the biggest mistakes businesses make is talking about themselves too much.

Customers don’t care about your company—they care about how your company solves their problem.

"When I see cold emails or outreach messages, they’re often three paragraphs long, listing everything a company does. That’s a mistake. People don’t have time for that. You need to be direct and focus on them."

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Great messaging is:

  • Short and to the point.
  • Emotionally relevant to the customer’s pain points.
  • Focused on immediate value, not features.

✅ TIP: Look at your current sales messages or website copy. How many times do you say "we" versus "you"? Rewrite it to be customer-centric.        

Use Your Hook to Strengthen Retention, Not Just Acquisition

A strong hook isn’t just for getting attention—it also plays a role in retaining customers over time.

Your brand messaging should reinforce why customers should stay as much as why they should buy.

"We use event-based strategies as a hook—exclusive invites, VIP experiences, and in-person meetups. It’s not just about closing the deal, but keeping customers engaged long-term."

Retention starts with reminding customers why they chose you in the first place.

✅ TIP: Brainstorm one way to engage existing customers with a hook—not just new leads. This could be a loyalty offer, exclusive event, or value-add that makes them want to stick around.        

Every tip here is inspired by conversation with Pranav Dalal CEO & Founder of Office Beacon LLC on the Mastering Tech Growth podcast.

If you enjoy listening or watching, tune in to the Mastering Tech Growth podcast on your favourite pod platform or catch it on YouTube for even more in-depth insights!


Charlie de Rusett

Advisor & 2 x Exited Founder

2mo

Great work Mike; you need to speak to exited Founder Edward Boon who is writing a very interesting sales book that covers some of this…

Mike Sirius

I help founders grow tech startups.

2mo

Reminiscing about our time with Idea Drop (Acquired by Wazoku) while writing this—so many great wins, and lessons learned! We did an amazing job fostering creativity and innovation. Grateful for the journey 🙏 Charlie de Rusett / Jonny Fisher / Correy Voo

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