Recurring Revenue? Keep Dreaming?
Markets with inherent instability, like the custom installation market, tend to post higher overall profits than stable, long-term industries. As an industry matures, stabilizes and slows, profits slow with it. But it'stoo early in the game to worry about this. The custom installation business is in its infancy. Large profits should be the norm for years to come.
So, like well-established designers in other industries (decorators, architects), the successful custom dealer should take his or her healthy cash flow and invest it outside of the business, in something nice and stable, like mutual funds or real estate investment trusts.
Then, every month, the dealer can run to the mailbox and read the latest cash-flow statement, and like our friends in the security business, smile at that sweet monthly income.
Ira Friedman is president of Bay Audio, a manufacturer of high-end speakers for the CI business. Contact him at Ira@BayAudio.com.&000;&000;