A residual income business plan shows a financial pro forma where the revenue driver is a recurring source of (generally) passive income, derived from a one-time service event of a subscription of some sort that a user pays for incrementally over time. Residual income can also come from anything that generates recurring revenue without proactive management or marketing. For example, many websites operate this way, with the mere presence of a high-traffic URL generating revenue for the domain holder, even without heavy ad spend or maintenance. A residual income business plan should feature:
• A description of your product or service
• A look at competitive comparables
• Information about threats to your model
• A snapshot of long-term revenues
• A list of any external costs
The business plan might not need a full pro forma depending on your audience and your funding needs, but make sure you cover all the basics. A sales forecast and profit and loss table, at a minimum, should be used to illustrate market reach and potential returns. You may also want to show a marketing plan, even if the costs are a one-time event, and it would be advisable to show your management team in bio format. Beyond that, a word or two about competitive comparables, the industry you're in, and the trends you foresee impacting adoption (if applicable) should round out the narrative portions. Want to discuss your residual income business plan with the experts? Call MasterPlans today for guidance and expert writing and modeling on your plan: 877-453-2011.
