How to Build a Business Others Want to Buy

Chapter 9Ten hot subscription side-hustle business ideas

There's a reason Atlassian and Xero are valuable companies. They both have a monthly subscription revenue (MSR) business model. Your car insurance, health insurance and gym membership are all examples of MSR.

WHAT IS A SUBSCRIPTION BUSINESS?

A subscription business is a business model in which a company offers ongoing access to its products or services in exchange for recurring payments from customers on a regular basis, usually monthly or annually. Typical subscription businesses include Netflix and Spotify, but subscription businesses can also be defined as those that offer predictable revenue beneficial for both customers and companies, as customers get ongoing access to products and services they value, and companies get a steady stream of revenue and increased customer loyalty.

Almost any business can be subscription-ified, but not all subscription businesses are created equal. Don't rush in and choose a product just because you love it. Be judicious, objective and strategic. You need to think carefully about what you'll sell so that you increase your chances of success. For example, choose a fast-moving consumable good (FMCG). This means the product gets used a lot, runs out and needs to be replaced frequently. Think toilet paper, toothpaste and tampons. That's why the giants of the FMCG (Proctor and Gamble and Unilever) are worth so much. Their customer base is baked in.

In case you're lost for inspiration, ...