When entrepreneurs talk about recurring revenue, they're usually talking about subscription businesses.

Monthly memberships.

Software platforms.

Service contracts.

But what if recurring revenue could be created inside a business where customers may only buy from you once every few years?

That was the central theme of my recent conversation with Jerry Cooper, Franchise Development Director for More Space Place, a home improvement brand that has been helping homeowners maximize their living spaces since 1987. While the company is best known for custom closets, Murphy beds, and storage solutions, the bigger lesson from our conversation had very little to do with cabinetry.

It was about building a business people can't stop talking about.

The home improvement sector has experienced tremendous growth over the last several years, driven by a simple reality: homeowners are staying put longer and investing more heavily in the homes they already own.

According to Jerry, the average home in America is roughly 40 years old. During that time, families accumulate more belongings, experience changing household dynamics, and continually look for ways to make their homes function better.

Children move away and come back.

Home offices become guest rooms.

Basements need to serve multiple purposes.

Garages become storage units.

The challenge isn't necessarily a lack of square footage.

The challenge is how to use that space more effectively.

That's where More Space Place found its niche.

Rather than focusing solely on closets, the company built an entire business around helping homeowners create functional living space. From custom closets and garage systems to laundry rooms, home offices, entertainment centers, and Murphy wall beds, the brand positions itself as a complete space optimization company rather than a single-product provider.

That distinction matters.

As Jerry put it:

"The key with it is the word space."

One of the biggest mistakes entrepreneurs make is becoming known for only one thing.

They become dependent on a single service.

A single product.

A single revenue stream.

And eventually they discover there's a ceiling.

Jerry explained that More Space Place intentionally avoided that trap decades ago.

Many competitors focus heavily on closets. While closets remain More Space Place's largest category, the company built its business around solving a broader problem: helping homeowners create usable space throughout the entire home.

That broader menu creates additional opportunities long after the first sale.

During our interview, Jerry shared a simple example.

A customer initially hires the company to install garage cabinetry. During the project, a spouse asks whether they also handle laundry rooms. Then the conversation shifts to mudrooms. Then perhaps a home office.

What began as a single project turns into multiple opportunities because the company offers more than one solution.

As Jerry explained:

"The right person and the right menu will lead itself into that recurring revenue."

That philosophy extends far beyond home improvement.

Whether you're operating a franchise, launching a startup, or running an established business, expanding your ability to solve customer problems often creates more growth than simply acquiring more customers.

Perhaps the most valuable insight from the interview came when Jerry described how recurring revenue is actually created.

His answer wasn't technology.

It wasn't marketing.

And it wasn't pricing.

His answer was surprisingly simple:

"You want to create raving fans."

The phrase surfaced repeatedly throughout our conversation.

For Jerry, recurring revenue begins with creating an experience customers genuinely want to talk about.

That means showing up professionally.

Respecting the customer's home.

Delivering exceptional craftsmanship.

Communicating clearly.

And ultimately exceeding expectations.

Something as simple as placing a protective mat down before entering a home can influence how a customer perceives the entire experience. Small details become memorable moments.

Most business owners focus on acquiring customers.

The best business owners focus on creating advocates.

Those advocates become referral partners, repeat customers, and long-term sources of revenue.

In Jerry's view, recurring revenue isn't always generated by the same customer purchasing every month.

Sometimes it's generated by the dozens of people that customer refers to you afterward.

One product that perfectly illustrates the company's approach is the Murphy wall bed.

While many homeowners recognize the concept, few realize how much demand exists for flexible living spaces today.

Remote work has permanently changed how many families use their homes. Spare bedrooms frequently double as offices. Finished basements need to accommodate both guests and everyday living. Adult children increasingly move back home after college. Retirees want space for visiting family members.

The Murphy bed solves multiple problems simultaneously.

When closed, the room functions as an office, entertainment area, or living space.

When opened, it becomes a fully functional bedroom.

As Jerry explained:

"All of a sudden you have an instant bedroom."

It's a perfect example of how More Space Place isn't simply selling products.

They're selling solutions.

Another aspect that separates More Space Place from many competitors is its operating model.

Rather than requiring each franchise location to maintain large manufacturing facilities and production teams, the company operates a centralized manufacturing center in Clearwater, Florida. The facility produces custom products that are then shipped directly to franchise locations.

This approach creates several advantages.

Franchisees don't have to manage production employees.

Quality remains consistent across locations.

Inventory purchasing can be centralized.

And supply chain disruptions become easier to manage.

Jerry pointed to the company's proactive approach to sourcing hardware and materials as one example of how centralized purchasing power can protect franchisees from market fluctuations.

For owners, it creates a simpler operational model focused primarily on sales, design, customer experience, and installation.

Not every franchise is built for the same type of entrepreneur.

Some brands are highly operational.

Others require deep industry expertise.

More Space Place is different.

According to Jerry, this is fundamentally a people business.

The most successful owners are relationship builders.

They're active in their communities.

They're comfortable meeting homeowners.

They enjoy helping people solve problems.

And they understand that trust is often more important than sales tactics.

As Jerry put it:

"It's not a hard sale. It's a relationship."

That people-first mindset also extends to hiring.

Throughout the conversation, Jerry emphasized the importance of investing in employees, creating consistency, and maintaining quality standards.

He was particularly direct when discussing subcontractors.

For a company built around customer experience and referrals, consistency matters. That's why More Space Place relies heavily on trained employees who represent the brand every day.

When most people hear the phrase "recurring revenue," they think subscriptions.

Jerry Cooper thinks relationships.

That's what made this conversation so valuable.

The lesson wasn't simply how to build closets or install Murphy beds.

The lesson was how to create a business that customers remember.

A business that solves multiple problems.

A business that earns referrals.

A business that stays top of mind long after the original project is completed.

Whether you're evaluating franchise ownership or simply looking for ways to grow your current business, the takeaway is clear:

Create raving fans.

The revenue tends to follow.