Welcome to another episode of The Lazy CEO Podcast, hosted by Jim Schleckser, founder of the CEO Project. In this episode, Jim delves into one of his favorite topics: recurring revenue. He emphasizes that a high degree of recurring revenue is a hallmark of a great business, allowing for better sleep, planning, and overall business stability.

Jim defines recurring revenue as contractually obliged revenue over time, distinguishing it from repeat revenue, which lacks contractual commitment. Examples of recurring revenue include cable bills, phone bills, utility bills, and software subscriptions like Salesforce and HubSpot. These services often involve contracts that are hard to exit, ensuring continuous revenue. Recurring revenue provides predictable income, making budgeting and planning easier. Businesses with recurring revenue find it easier to grow as they can rely on a steady income stream and need less aggressive sales and marketing efforts compared to project-based businesses.

The concept of Customer Acquisition Cost (CAC) is crucial here; companies are willing to invest significantly in acquiring customers, knowing they will generate long-term revenue. Recurring revenue models attract investors due to their stability and predictability, unlike project-based models which require constant new sales. Businesses with high recurring revenue often achieve higher valuations, sometimes trading at multiples of revenue rather than profit.

In this episode of "The Lazy CEO Podcast," host Jim Schleckser discusses the integration of purpose into businesses. Jim shares his perspective that businesses shouldn't abandon their platforms once they've established success but should instead use them to make positive contributions. He references his midlife insights from the book "Halftime," which suggests a shift from success to significance in life's second half, a concept Jim feels could be initiated much earlier in a business lifecycle.

Jim introduces Jeff Maine – CEO of Pay Proudly, a payment processing company that not only focuses on providing clarity in transactions but also embeds charitable giving into its business model. Jeff shares his journey of integrating purpose into his business from the onset, influenced by personal experiences and a desire to give back to the community. He explains how his company asks clients about causes important to them and aligns their charitable efforts accordingly, which has become a significant aspect of their business identity.

In this episode of "The Lazy CEO Podcast," host Jim Schleckser delves into the critical topic of delegation within the context of executive leadership. He emphasizes the importance of mastering the basics to excel in any field, comparing it to essential skills in sports like soccer. Jim’s main focus is on how CEOs can effectively delegate tasks to manage their time efficiently and avoid overworking, aligning with the podcast's theme of promoting a 'lazy,' yet highly effective CEO lifestyle.

Jim introduces the concept of the "not do list," a strategic tool that helps prioritize tasks based on their economic impact on the business. He explains how this list is used to identify tasks that should not consume a CEO's time, advocating for the delegation of these lower-priority items. He outlines a method to handle such tasks by deferring them, deleting them from the list, or delegating them to others. This approach not only frees up the CEO's time but also empowers other team members.

He further discusses the "70% rule" for delegation, suggesting that if someone can do a task at least 70% as well as the CEO, it should be delegated. This rule aims to overcome the common hesitation among leaders to delegate due to high personal standards and self-reliance. By setting this threshold, CEOs can feel more comfortable passing responsibilities to others without feeling the need for tasks to be performed perfectly.