In this episode of The Owner’s Playbook, Carol Dewey explores one of the strongest drivers of business value: recurring revenue. She breaks down why predictable income improves stability, strengthens decision-making, and dramatically increases valuation—often doubling multiples compared to businesses built purely on one-time transactions.

Carol explains the true meaning of recurring revenue beyond subscription models and highlights how any business, in any industry, can identify and build predictable revenue streams. She walks through the six types of recurring revenue, ranked from weakest to strongest, and illustrates why predictability matters both operationally and emotionally for owners.

This episode also uncovers the mindset shift from chasing sales to building systems—turning consistency into freedom, stability, and long-term value.

Key Takeaways

• Why recurring revenue is one of the most powerful drivers of company value
• The difference between unpredictable sales and predictable income
• How recurring revenue impacts confidence, cash flow, and valuation
• Six categories of recurring revenue, from weakest to strongest
• Questions to help owners identify recurring revenue opportunities within their current model
• The strategic advantages of predictable income for hiring, planning, and long-term stability
• Why recurring revenue increases freedom by reducing the stress of starting each month from zero
• How predictable revenue signals loyalty, repeatability, and lower risk for buyers

Resources Mentioned

• 21-Point Business Readiness Assessment
• Book: How to Beat the IRS Legally
• Value Builder Assessment