A service-based business is one in which you do not sell any physical products. A goods-based business sells physical things that you can exchange for money.
For example, Fast Moving Consumer Goods such as household consumables are physical products. Clothes and jewelry are physical products. Household furniture and fittings are also physical products
However, the laundry person who uses all the soap to wash clothes, or the housekeepers who clean the house are in a service based business. The concept of costuming and makeup for the fashion industry are service based businesses. In the same vein, the interior decorator, architects and artisans are providing services.
While it is easier to fix prices for goods, it may not be so straightforward for services, except in countries where such industries are well regulated.
However, in the absence of such regulation, service providers are left at the whims and caprices of clients and their negotiating powers, whether weak or strong.
In the event that service providers do not get high paying clients or have weak negotiating powers, their businesses struggle and the not-so-forthright ones would resort to sharp practices.
But this can be avoided. With some business acumen and devotion to strong work ethics, the service based business will blossom to the delight of the business owner.
So here are 5 hacks you can start employing right away to grow your service based business.
Sell the physical products ancillary to your services. Just like makeup artists sell makeup things, a plumber can also sell plumbing materials. By doing so, you are able to save as against if you need to purchase them for your clients.
It also becomes possible to retail the goods for repeat buyers after your service has been successfully delivered.
This can also give you greater exposure than just servicing clients on the job. Indeed the opportunities are limitless if you can sell ancillary products and be attentive to your market.
Partner with before or after businesses. If you run an accounting firm, your client will most likely also need a law office. So why not partner with a law office so that you can recommend them and they can recommend you for a commission?
This is actually in the best interest of your client as both services are able to collaborate professionally to help the client achieve laser-focused results.
Or let’s take a content creator for example, your client is likely to need a digital marketer at some point. Collaborating with each other could bring in juicy deals for everybody. Or what do you think?
Remember though that in these collaborations, parties should have a well documented collaboration agreement. This will better guide the relationship and reduce conflict arising out of unaddressed factors.
Attend events. In these days of virtual businesses, people are not so inclined to get up and go for physical meetings anymore. The place of physical meetings and connections cannot be overemphasized.
If you are a real estate person, attend fairs of construction businesses and introduce your business to attendees. Attend general conferences organized by architects and engineers. Or just attend events where your target market is likely to congregate.
What you must do, however, is to learn how to connect and the different stages of making deals.
It’s not rocket science actually but doesn’t wait till you know it all to start attending. You can also learn on the job. And who knows your mere presence could make a world of difference in your business. Nobody learns how to swim by watching YouTube videos. You must get into a pool.
Seek opportunities to teach something about your service for free.
Teach it in the church or mosque. Teach it in your alumni association. Teach it in PTA meetings at your children’s school.
A dentist can teach something as simple as why dental floss is better than toothpick. And if you can afford it, share a small pack of branded dental floss. Make sure it contains your contact details in bold prints.
You grow your audience and their love for you if you teach for free. The more you teach, the more you are known, loved and trusted. And the easier it will be for them to make you their choice when it’s time to buy your services.
You must however, make sure that what you are teaching is relevant to your audience. A dressmaker may not achieve much speaking with nuns about how to care for their clothes. The reason is obvious: Nuns don’t have such a large wardrobe.
However, a dressmaker can speak at her women’s association about creating a rich business wardrobe on a small budget. And a crochet person selling wool is more likely to achieve results teaching nuns how to make bunnies for babies and toddlers. Most abbeys have an orphanage of their own or one they collaborate with.
You see how it works now, don’t you?
Bring your business onto social media.
Am I flogging the issue here? I hope I am.
I hope everyone in my sphere of contact either already has a social media account where their business can be found or are building one as we speak.
It is no news that online businesses are making tons of money while sitting in front of their laptops.
Either organically or through ads, your business should be in the face of people who need your service and can afford it.
The benefits are limitless, notable among which are factors such as the cost of social media ads vs print and broadcast ads. Social media ads are way cheaper and better targeted. Retargeting is also a juice only to be found in digital ads.
But if you can’t afford ads, you can put your business out there through other means. You can constantly create content across different platforms. You can collaborate or you can engage influencer marketing.
If you would like to know how to bring your business unto social media, you can shoot us an e mail and we will get right back to you.
Whether you run a daycare, or you teach adult education, whether you paint houses or you ghostwrite, these 5 hacks will help your service based business thrive if you give them time and attention.
Please drop your questions and Comments. We would love to hear from you.