In a service business, time is money. As a business owner, you might find that you are not growing as fast as you had anticipated since you deal in services and not products. But, with a sound growth plan and the finances to support it, you can grow your service business from strength to strength and earn higher revenues with relative ease. Take a look at 5 tips that will help you do this.
1. Create a better mode of offering the service
In a service business, you may often find yourself doing everything from marketing and providing the service to handling collections. You could spend your time more productively by moving from a one-on-one model to one-to-many model. For example, you can have a yoga training business. Here, a one-on-one model means that you will conduct sessions with one person at a time. But, this will limit your growth and stunt your productivity. So, you can consider tweaking the model by creating a series of training videos. Then, you can sell access to the tutorials through digital sign-ups and receive payments online. This will allow you to increase your clients manifold, without adding instructors. By adopting the one-to-many model, you can cater to several customers simultaneously.
2. Consider a package pricing strategy
Generally, service professionals charge an hourly rate or a per-session fee, which includes the cost of the service along with the profit. Consider offering package pricing wherein a group of services come at a certain rate. By offering multiple services, you can lure more customers and increase profits.
3. Charge differently for each addition to your basic service
Charge appropriately for every service that you provide. This will allow you to increase what you charge for your and your staff’s time and efforts. Fix a standard base rate and increase charges as customers select additional services. For example, if you offer a group yoga class for beginners, you may charge Rs. 5,000 per month. For two one-on-one sessions every week, you can charge an additional Rs. 1,000. Similarly, if your client wants to learn basic stretches and detailed breathing techniques, you can charge an additional Rs. 500 each. This allows you to ensure that you bill in the best possible way and ensure that you are getting paid for each service that you render.
4. Leverage your existing customers by encouraging subscriptions
Your existing customers are an important asset and you need to hold on to them as you grow. Offer subscriptions for services that they can avail within a fixed time at a marginal discount, if they make an immediate payment. This will work well if you run a salon, for example. In the long run, you will find that this strategy will help you retain customers and increase sales.
5. Participate in networking events
Never underestimate the power of networking, especially since you are in a service business where good referrals and word of mouth matters. From the time you acquire your first client, you need to focus on networking and promoting your business. Focus on participating in cultural events organised within your community. Work on building business contacts, join groups and attend relevant events with a clear view of business promotion. For example, if your neighbourhood is organising a special lunch for Women’s Day, you can sign up as a co-sponsor and promote your salon business. If you’re lacking the funds you need, a business loan for service enterprises can provide quick finances at a nominal interest.
A service business needs to be agile, customer-friendly and provide the expected quality of service. By paying attention to each of these factors, you’re sure to be able to grow your business by leaps and bounds.
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