Growth is one of the most common objectives of businesses. Every professional service-based startup business needs a tactical, well-outlined, focused, and intentional business growth strategy. Why? Because it helps you direct your resources into more profitable channels for your startup, and also because having a solid growth plan is a definite green light for potential investors,

WHAT IS A SERVICE-BASED COMPANY?

A service-based company provides intangible services (whether personal, social, or business-related) to its customers. Unlike a product-based company, a service-based company offers services that are only available based on customer demand –no physical inventory or delivery involved. These services could range from business advisory (like us!), marketing services, and legal services, to plumbing, laundry services, and much more. 

Here are some key features of service-based businesses:

• Low start-up capital: Compared to product-based companies, service-based companies typically require less capital to launch. For instance, you would agree that anyone looking to start a mini-mart would consider renting a space, buying stock, hiring staff, and investing in equipment. On the other hand, all an email marketer probably needs for starters is internet access and a personal computer.
• A flexible work location: Most service-based startups can operate from virtually anywhere and do not necessarily have to be a walk-in business (all of the staff could even work remotely!). Remember: services are mostly abstract, unlike tangible products, hence the flexibility of when and how you work. 
• Customer-centricity: Service-based companies (e.g. us!) usually offer solutions based on knowledge, experience, expertise, or answers that customers need. They are deeply motivated by customers’ needs, wants, and preferences, and often offer tailored services per individual need, which fosters strong customer relationships.

STRATEGIC TIPS FOR GROWING YOUR SERVICE-BASED BUSINESS

Like everything else in business, growth strategies come with some level of risk. If you already have a growth strategy that is working fine for you, that’s great! But keep reading –nobody said anything about too much knowledge hurting anyone, right?

Selling a service-based business is often trickier than a product-based business because the physical item is absent for customers to see and touch. Therefore, customer relations play a crucial role in any growth strategy.  Listed below are some key strategies:

1.  Whatever you do, be customer-centric:

Customer centricity appeals to your client’s needs and keeps them engaged throughout their journey, up until they make the final decision to buy what you are selling. 

2.  Invest in the right technology:

This does not just refer to gadgets and other tools alone, but also to website optimization (making your website fast and mobile-friendly too), creating personalised features for apps, and offering a great user experience generally.

3.  Develop a holistic strategy:

A holistic strategy simply means that you are not just prioritising the growth of certain aspects of your business, but you are prioritising the growth of every aspect of your business! Your customers deserve the best from your company, so strive to ensure that every team or department is running at its best at all times. Neglecting one area will ultimately affect your service quality, and could harm your company’s reputation in the long run.

4.  Build  a strong online presence:

This is directly related to investing in the right technology as explained above. A strong online presence can put you ahead of your competitors, and increase your chances of making sales. And more sales equals growth!

5. Expand into new markets:

Exploring new markets helps you reach a larger audience. It is a low-risk growth strategy, but you have to be careful to not let your exploration take you too far away from your brand’s core identity. If this happens, you risk losing customers as many will begin to see you as a “Jack of all trades, master of none”.

6.  Focus on your most profitable services:

While it is a smart idea to diversify your offerings, it is an even smarter idea to focus on the services that yield the most profit for your business. Streamlining your focus to areas that yield higher profit, and noting those that do not, will allow you to make the right decisions to increase your profitability.

7. Invest in business advisory services: 

This alas, is where we (Biz Vital Signs) come in. A startup may claim to know its customers well, but we can assure you, that having real-time insights from another perspective is crucial for success! Business advisory services (especially ours) are designed to track your business’ operational and financial dynamics, and provide a customised roadmap for its growth and success!

Wondering where you stand in your growth goals, or do you need the best strategy for the kind of service(s) you offer? 

Book a demo with us now.

Stay tuned for more educational updates from our blog.