How To Scale Your Service-Based Business

If you are in a service-based business, you have the potential to grow quickly. Technology enables entrepreneurs to easily connect with customers in need of services, ranging from design to security to transport and handyman services. Additionally, service-based businesses often have lower overhead costs (like Uber and Airbnb), making it easier to reinvest more of the profits back into the business. Once you've mastered your local market, you might consider expanding and reaching more customers 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 trading in new territories, it’s essential to understand the logistics and legalities involved. This crucial step for any service-based business is often overlooked. To avoid expensive legal disputes, ensure that your business operates within the law from the start. Take the time to conduct research and make any necessary adjustments to your business model.

Hire the Right People

Your product is directly linked to the people who represent your brand. It's important to focus on hiring individuals who will positively represent your business. A service-based business relies heavily on its workforce, and when your team performs well, the business thrives. While it can be challenging to maintain control over this in a service-based model, every effort should be made to ensure your employees are strong brand ambassadors.

Figure Out What the Market Wants

The best time to grow your business is when it makes strategic sense. Many businesses rush to expand and end up spreading themselves too thin or taking on too much too quickly. Pay attention to your data—review your sales, analyze competitors, and consider the overall economy. Ensure there is sufficient demand for any new branch, product line, or service you plan to introduce. Sometimes, it may be more beneficial to focus on improving efficiency or refining your marketing strategy before scaling.

Offer Packages of Your Skills

Growing a service-based business can be difficult due to the lack of advantages seen in product-based businesses. To overcome this, consider packaging your services as if they were products. This approach requires developing a system with relevant pricing and logistics, which can help streamline operations and make your services more accessible.

Leverage Other People's Assets

Look at how companies like Uber, Lyft, and Airbnb generate revenue: they utilize other people's assets. For instance, Uber doesn't own many cars, and Airbnb doesn’t own significant real estate. These companies leverage software to connect underused assets worldwide, allowing them to grow rapidly without the financial burden of purchasing assets. Every business owner should consider how to use others' assets to help their businesses expand.

Share Responsibilities

As you seek to grow your service-based business, you’ll need to delegate more work to others. Your role as a business owner should evolve over time, shifting from doing everything yourself to empowering others. Avoid letting pride hinder your ability to build a strong team; collaboration is key to success.

Prioritize People Skills

Building trust is essential for growth. Companies like Airbnb and Uber foster trust by requiring user verification, such as emails and driver’s licenses. Encourage reviews and feedback to enhance trust and provide peace of mind. Be responsive to feedback, monitor social media, and engage with the press to prevent potential issues from escalating. Listening to user suggestions can also lead to valuable new features. When customers feel like they are part of a trustworthy community, they are more likely to return.

The Bottom Line

Service-based businesses have significant growth potential. With the right platforms, thorough research, and strong organizational structures, you can build a successful business with satisfied customers. To grow your service-based business in the next 48 hours, contact Merchant Capital today.

‍