Starting a service-based business can be a great way to follow your passion and build a successful career. However, it takes more than just hard work and dedication to grow a service-based business. In this blog, we will discuss some strategies that can help any small business grow and succeed in today’s competitive market.
Scaling a local business means increasing revenue and profits without sacrificing quality or customer satisfaction. Here are some effective strategies that can help service-based businesses scale their operations:
Develop a Unique Selling Proposition (USP)
In a crowded market, it is essential to differentiate yourself from your competitors. Developing a unique selling proposition (USP) is a great way to do that. A USP is a statement that explains what sets your business apart from others. It can be anything from the quality of your service to the way you interact with your customers.
Here are a few examples:
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A landscaping business may use eco-friendly and sustainable landscaping techniques that keep your children and pets safe.
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A dentist office may use the latest technology to provide pain-free dental procedures in a relaxing, spa-like environment.
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A lawyer may provide compassionate immigration services to clients from a particular region of the world.
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An HVAC repair business may provide same-day service for emergency repairs, while giving customers regular text message updates on the arrival of the technician .
Build a strong online presence
In today’s digital age, having a strong online presence is crucial for any business. A professional website, social media presence, and positive reviews on platforms like Google My Business and Yelp have become table stakes. While digital marketing tools alone won’t grow your business, customers expect several more than just one online touchpoint to reassure them that your business is credible.
Need inspiration?
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A landscaping business may use social media to showcase their work and attract new customers.
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A dentist office may use their website to provide educational resources on what patients can expect before and after a particular procedure.
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A lawyer may use online reviews to establish credibility and attract new clients.
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An HVAC repair business may use their website to make it easy for customers to schedule same-day service or book an appointment.
Offer subscription plans
Subscription plans aren’t just for streaming services and software. They are also an excellent way for small businesses to increase revenue and build a loyal customer base. They can also help service-based businesses maintain a predictable income stream and reduce customer churn.
In fact, subscription plans are one of the best long-term investments you can make in your local business. A report by Forbes found that subscription-based businesses have higher valuations than traditional businesses, with an average valuation of 5.7 times revenue compared to 2.9 times revenue for traditional businesses.
If you’re creative, you may find that any service-based business can create a subscription plan:
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A landscaping business may offer monthly lawn maintenance subscriptions.
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A dentist office may offer a teeth whitening subscription plan.
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A lawyer may offer a subscription plan for ongoing legal services, like a retainer, but with a modern twist.
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An HVAC repair business may offer a quarterly maintenance plan to keep HVAC systems running smoothly, along with a subscriber discount for any emergency services.
Use referral programs
Referral programs are an effective and affordable way for small businesses to acquire new leads and increase revenue without breaking the bank. By incentivizing existing customers to refer their friends and family to the business, referral programs tap into the power of word-of-mouth marketing, which is widely regarded as one of the most effective forms of marketing. Because referrals come from trusted sources, they tend to be more likely to convert into paying customers.
Additionally, referral programs are relatively cheap to implement, as they rely on the existing customer base to spread the word. That makes them a great choice for small businesses with limited marketing budgets or less experience with online marketing tools like ads and social media.
Tips for building a successful, low-maintenance referral program:
Furthermore, referral programs can help build stronger relationships with existing customers, as they feel appreciated and rewarded for their loyalty to the business. Offer current customers a discount or freebie for every new customer referred. A landscaper might offer a free lawn mowing, while an electrician could offer a no-cost maintenance check on a homeowner’s wiring.
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Announce your referral program on your website, in regular emails to clients and on social media.
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Create incentives for “power users” who refer you multiple new customers. Your most enthusiastic customers deserve an extra discount or additional free services.
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Train your service team to ask for a referral at the end of every service call. A simple, authentic request works wonders: “We are a small, local business competing against big national competitors. We aim to deliver outstanding service every time, and we rely on referrals from happy customers. Do you have any friends or neighbors you could connect us with?”
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Scaling a service-based business doesn’t have to be a grind
If you follow these simple steps, you can DIY your way to a thriving local business without a lot of time, money or headaches.
Want help growing your business? Or just interested in some no-pressure tips for improving your marketing, sales or internal processes? Book a consultation today and we’ll audit your business for free.
