Why Service Businesses Don’t Make Any Money (Unless You Do It Right)Posted by Jessica Oman
It’s 2014, people. You’ve got some ass-kicking to do in your business. It’s time for growth. Abundance. Freedom. Whatever your business resolutions are, hopefully you’re fired up to meet them right now – I know we are over here.
But as a service-based business, we have some unique challenges when it comes to making revenue and profit. If you’re a consultant, coach, masseuse, marketer, writer, PR expert or designer, you’re likely facing some similar challenges. You’re likely not making enough money.
Do you know why not?
It could be a number of things. Perhaps your prices are too low (but they seem high enough…). Or maybe your expenses are too high. Maybe you’re not marketing to your idea customers, so you’re getting clients that don’t see the value in what you do, or you just don’t have enough clients to make whatever it is that you deem Good Money.
So many service-based businesses make no money because their owners don’t take the time to create processes that make work more efficient while delivering incredible value to clients. It’s easy to put process aside, especially as a solopreneur, because you have no one to be accountable to. But avoiding process kills your productivity. And eventually, your clients will know it because you’ll be broke and frustrated.
And I don’t want you to be broke and frustrated.
But you know why it’s happening. When you deliver services, you spend a lot of time in front of a computer. And it’s distracting. Facebook! Pinterest! Email notifications! Google Hangouts! OMG IT’S ALL SO MUCH FUN. And suddenly it’s 3 pm and you have failed to do any work that actually will bring revenue into your business TODAY.
How can you get out of the anti-productivity trap? Here’s what we’re doing.
I borrowed an exercise I read about on Chris Brogan‘s blog. Maybe it was Rob Hatch‘s. But anyway, I decided to come up with two words that will guide everything I do at Write Ahead (well, really my whole life) in 2014.
EFFICIENCY and FOCUS.
No more lurking leads on LinkedIn. Checking my inbox every five minutes? No more. We are going to be about processes and streamlining and making sure that we all know exactly how to deliver the best value we can to every one of our clients, consistently, every time.
What are the words you’ll live by in 2014 to help your service business grow?
I’m starting to get pretty excited about what this year holds. Are you?