It can be hard to scale a service business if time is your major commodity.
That’s where the concept of “productizing” a service business comes in. Productizing a service business means adapting your business model to present what you offer as a product instead of a customized service. Try the following tips to successfully productize your service business:
- Automate your delivery – If you find yourself doing a lot of one on one repetitive education or training for your customers, consider recording the sessions and then selling the recordings online. This can be done as a onetime fee or as a subscription fee to generate recurring revenue.
- Think “what else” – Many service based companies can bundle products with their services to make additional revenue. If you own a cleaning service, for example, consider adding organizational tools or “between clean” packages that make maintaining a clean home easier for the home owner.
- Publish a price list – Readily available pricing information can be crucial if you want to scale from a single sale into thousands of sales. Doing custom quotes can be time consuming and may keep the number of sales down. Create a list of your most popular services and put a price next to them.
Productizing a service business may not be for you, but it can solve a number of the issues that plague small businesses. Productizing can help solve the problem of inability to scale, stress of constantly acquiring new customers and projects, and limited profits.