Most likely, your service business started with one person as the key service provider – you.
As the business grows, you have two options: to continue with the leadership role, or to handover those reigns to a staff who will help you manage the business expansion.
I’ve gotten this transition wrong so many times and as a result, I was forced to move away from my growth and strategic role back into the service driver’s seat.
Here are eight tips to help you master the art of thriving in a service business:
- Find the right people. Have a documented recruitment process and a reliable network of freelancers and consultants to tap for projects. This way, you don’t feel forced to employ someone good because you don’t have time to find someone awesome.
- Nurture your network. Having a network and networking are two very different things. A network is a concentrated group of people you’d do business with. Networking is handing out your business card to everyone in hopes they might need your services. Remember: it’s the quality of connections you make and doing what you say you’ll do that is key to building a valuable network that will stand the test of time.
- Retain clients. A service business that can bill clients on a retainer makes a world of difference. Cashflow, capacity and resources are now predictable. Try to include a three-month notice period in your contract as a safety net if you’re a small business.
- Process map everything. Spelling out the steps for the main functions of your business will ensure processes are done well, and these efficiencies are embedded into your business. There are digital applications available to do this.
- Learn from mistakes… the first time. The first time a client doesn’t pay, which will happen to 100% of all service businesses, know what paperwork you should have in place. Then, add this to the process map for onboarding a client.
- Set a learning target. As a business leader, you’re assumed to know more than everyone else. This takes time and training. Set a learning target for the year and a number of hours to achieve these goals. A learning opportunity such as a conference is usually coupled with a network building opportunity, so it’s a good investment.
- Avoid over-engineering. Don’t over-systemise your business. Talking is an acceptable paper trail – just get on with delivering what you said you would for the client. I’m a big believer, however, in technology so tap great tools that suit your needs.
- Have “someone else” run your business. This person may seem like a mystical unicorn, but it’s possible to find and trust someone else to run the business side. That’s the only way you can put on your strategic hat and truly grow your services business.
Lauren Fried, Founder/Managing Director, Pulse Marketing and Co-Founder, Advisory Board Institute
