John 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