If you are in a service-based business, you have the potential to grow really quickly. Why? Because technology enables entrepreneurial thinkers to easily use website or app services to connect with customers who are in need of their services; from design to security to transport and even handyman services. Most service-based businesses also have lower overhead costs (like Uber and Airbnb), which makes it easier to reinvest more of the money made back into the business. So once you've mastered your local market, you might think it's time to grow and reach more people through these technology channels. This is a great goal, but to achieve it, you need the right plan.
Understand the legalities in local markets
When you are trading in new territories it is important to understand the logistics and legalities in that place. This is a very important step for any business that provides a service, but it is often overlooked for too long. The best way to avoid expensive legal fights is to make sure that your business stays well within the law from the very beginning. So take some time to do the research and tweak your business as required.
As your business grows, make sure you hire the right people to represent your brand
It's important to remember that your product is directly linked to the people who do the job. You should pay a lot of attention to the people who represent your business and, by extension, you. A service-based business is really about the people who work there, and when the people are better, the business itself does better and grows faster. It’s not always easy to control this in a service-based business model but in spite of this, every effort should be made to ensure your network of workers are strong brand ambassadors and protect your brand.
Figure out what the market wants
The best time to start growing your business is when it makes sense to do so. Many businesses are so eager to grow that they spread themselves too thin or take on too much. If you know what to look for, you'll know when to scale. One key part of this is to pay attention to your facts. Look at your own sales, those of your competitors, the business, and the economy as a whole. You want to make sure there's enough demand for a new branch, store, line of goods, or whatever else you're planning. Look at what the numbers say, not what you think they should say. Before you start growing, it's sometimes better to focus on making changes, like making your business more efficient or getting your marketing just right.
Offer packages of your skills to turn them into products
A service-based business is hard to grow because it doesn't have the same advantages as a goods business. In other words, it can be tricky to assess the demand and strategize according to that. A smart way to move forward is to package your services as if they were goods. This will require a system, with relevant pricing and the logistics required to deliver. But this will speed things up in the long term and make your service more accessible.
Rely on other people's assets
If you look at how service-based businesses like Uber, Lyft and Airbnb make money, you will see that they use other people's assets. For example, Uber doesn't have a lot of cars and Airbnb doesn't have a lot of real estate. These companies have figured out how to use software to connect underused assets around the world. Compared to older businesses, these ones were able to grow so quickly because they didn't have to worry about not having enough money or resources to buy these assets. Every business owner should remember this and look for ways to use the assets of others to help their businesses grow.
Find out how to share well
When you want to grow a service-based business, you need more people to do more work. So, as a business owner, your main job is to keep giving the best people you can find parts of the business. What you're doing now shouldn't be the same as what you'll be doing in six months time. As your business grows, you will need to hire more people and give them more work. Don't let your pride and desire to do everything yourself get in the way. The only way to win is to be part of a good team.
People skills should be your top priority
Make sure there are ways to help build trust. Airbnb and Uber do this by asking for emails and driver's licenses of their suppliers. You can also read reviews from other users, which builds trust and gives people peace of mind. You also have to pay attention to feedback, social media, and the press, and be ready to react so that nothing gets blown out of proportion. Also make sure to also listen to user suggestions for great new features. Make people feel like they are part of a trustworthy group and they will feel comfortable using you again in the future.
The bottom line
Service-based businesses have a lot going for them. If you have the right platforms, do your research, and leverage off strong structures, you can really build a strong business with satisfied customers. To grow your service-based business in the next 48 hours, contact Merchant Capital today.