How to Grow a Service Based Business
Service-based businesses are those that offer intangible value to their clients, such as consulting, coaching, writing, designing, or programming. Unlike product-based businesses, service-based businesses do not have physical inventory or goods to sell. Instead, they rely on their skills, expertise, and reputation to attract and retain clients. Knowing how to grow a service-based business takes careful consideration.
It’s not as simple as selling more products when the product is your time, which is a finite resource. After all, there are only so many hours in a day you can offer up. Scaling a service-based business can be challenging, especially when the demand for your services exceeds your capacity.
So, how can you grow your business successfully without compromising the quality of your work or burning yourself out? Here are some valuable tips on how to grow a service-based business successfully.
Define your niche and ideal client.
One of the most important steps to grow your service-based business is to narrow down your target market and focus on a specific niche. By doing so, you can position yourself as an authority in your field, differentiate yourself from the competition, and attract more qualified leads.
Narrowing your niche is important because it helps you focus your marketing and enables you to speak specifically to the potential clients that will get the best results from working with you. You can identify your ideal client profile and tailor your marketing message and service offerings to their needs, goals, and pain points.
When you’re specific about the niche you serve, you’ll automatically reduce the number of companies you’re competing with. The more specific you are, the fewer competitors you’ll have to deal with. You will reach a vaster audience more effectively, helping your business grow.
Outsource or delegate tasks.
As your service-based business grows, you may find yourself overwhelmed with tasks that are not directly related to your core service offering or that are outside of your comfort zone. To avoid bottlenecks and burnout, you should consider outsourcing or delegating some of these tasks to other professionals or agencies that can handle them more efficiently and effectively.
For example, you can outsource tasks like accounting, bookkeeping, graphic design, web development, or social media management to freelancers who specialize in these areas.
Although you are a sole trader, that doesn’t mean you have to do everything yourself! By delegating tasks, you will free up time that will allow you to focus on growing your business.
Build your Network.
A great way to grow your service-based business is by expanding your network. One way to do this is by attending networking groups. These are events where professionals from different industries and backgrounds meet and exchange information, ideas, and contacts. By attending these events, you can introduce yourself and your business to other professionals who might be interested in your services or who might know someone who is.
Another way to expand your business network is by reaching out to people of interest through LinkedIn or other social media channels. Making these connections is invaluable to promote your business.
There are many networking benefits. Building a network means you will be able to leverage the skills, expertise, and experience of other professionals in your field and expand your service offerings and capabilities.
Upsell to your Existing Clients.
Upselling is a sales technique to sell products or services to existing customers. When thinking about how to grow your service-based business, first look at scaling up with the clients you already have. According to Forbes, your probability of landing business with an existing customer is much higher, and less expensive, than landing a new client.
Upselling can be an excellent strategy to drive growth because:
- The cost of attracting new customers is five times the cost of retaining existing ones.
- Existing customers are 50% more likely to try a new product.
- Existing customers spend 31% more than new customers.
- The probability of selling to an existing customer is 60 to 70%, while a new prospect is 5 to 20%.
There are many effective ways to upsell to your existing customers without being pushy, such as bundling related products together and offering customers a deal that encourages them to pay more than they originally intended. This means a greater return for you, and your customer feels they’ve got a good deal.
Collect feedback and testimonials from your clients.
One of the best ways to grow your service-based business is to collect feedback and testimonials from your clients and use them to improve your services and showcase your credibility and results.
By asking for feedback from your clients, you can identify what they like and dislike about your services, what they value most about working with you, and what areas you can improve on. It might be small tweaks or a serious gap that you never considered. Customers who see you’re taking on their feedback are also more likely to stay loyal.
By collecting testimonials from your clients, you can display them on your website or social media platforms to attract more leads and referrals. The more reviews you have, the more credible your company appears to potential clients. And the more positive reviews you have, the more competent and helpful your brand seems.
To scale any type of business, you need to focus on every area of your marketing strategy, including email, social media and your website. If you aren’t persuasive on every platform, that negligence will push potential customers away. Marketing and branding are crucial for scaling any business, but especially for service-based businesses that rely on building trust and relationships with their customers.
By investing in marketing and branding strategies that showcase your value proposition, personality, and expertise, you can increase your visibility and awareness in your niche market and generate more leads and sales. Some of the marketing strategies that you can use for your service-based business include creating a professional website, blogging, podcasting, video marketing, email marketing, social media marketing, SEO, PPC, or PR.
Growing a service-based business is a journey that requires commitment and adaptability. By following these practical strategies, you can position your business for success. Remember, it’s essential to maintain a strong focus on delivering exceptional service, as satisfied clients are the foundation of your business’s growth and reputation. Tailor your growth strategies to your industry and target audience, and you’ll be on your way to achieving sustainable success.
For more strategies on how you can successfully grow your service-based business, Click Here to schedule a Free 30 Minute Discovery Call.