When you start a business, you typically offer a very limited range of services. One of the main reasons for limiting your service offerings is because the limitation allows you to put a strong focus on perfecting the services that you do offer so that you can build a name in the industry and build trust with clients who are seeking what you offer. When you are in a service industry, one of the first things you need to do is build your brand or your company’s image. After you have a strong image, you can start to build your book-of-business and turn sales revenue into profits.
The Modern Day Consumer
But consumers expect a lot more from service-oriented companies than they did in the past. Now, consumers are looking for businesses who offer a wide range of different industry related services under one roof. Companies who offer a wide range of services can enhance their value propositions and use the enhanced value as a marketing strategy through advertising campaign efforts. Those businesses who choose to keep their focus on very a handful of services they have always offered are missing out on monetizing relationships they have already built.
Is Expanding Your Service Offering Worth the Time Commitment?
But how do you expand your service offering in your industry? After all, you are very familiar with the processes that you follow now and expanding your offerings may cause chaos. But the chaos can be controlled if you come up with the right strategy and you offer the right type of services.
By taking the time to develop new specializations in your business, you can makeup for lost revenue for services that are not selling, build new relationships with a new target demographic, and also build stronger relationships with clients you have serviced since you opened your doors. You will find that the time you committed to your expansion efforts was well worth it when it translated into an increased sales revenue and market share.
Steps to Take Before You Plunge Into Expansion
- Testing the Areas Where You Should Expand
One of the biggest mistakes you can make is failing to plan ahead before you expand your service offering. After all, you do not know what service you should begin offering if you do not know market trends and what your customers want. One of the best ways to find out which services consumers are seeking out in your industry is to test new areas of business. This is like dipping your toes in the water before you dive into a freezing pool.
When you test out areas of the market, you can decide which service offerings are practical and which are not. Only after you do research can you start to develop a team to build on your capabilities and your skills.
- Setting Your Budget
Part of the planning phase is setting your budget. You set a budget every year and this upcoming year might just be the year when will need to cover expenses that are related to expanding your service offering. There may be a lot more expenses than you initially considered. After all, you need to look for a training company who can help you develop your skills but you also need to cover salary expenses for new team members. In addition to this, you will need to plan a new marketing campaign that will inform your customers of the new services you are offering. Without a budget, you will not have a basis for how much you can reasonably spend.
- Thinking Long-Term When You Are Testing the Waters
If you are in the pest control industry, there are a variety of routes you can go when you are trying to expand your service lineup. You might want to offer organic pest management services to your environmentally friendly clientele, bedbug services, and even bird control management. But when you are testing the waters, you have to think long-term. Sure, you understand the benefits of the services you want to start offering, but will your customers see the value?
If you see potential in services and you can develop a campaign, you need to take about 12 months testing the service to see if it will emerge strong. When you are testing services for long-term potential, you should consider doing business with a consultant who can help you cut your teeth in this area.
After you work closely with a provider or a consultancy firm, you can build your own team that can oversee the service offerings, monitor their success, and determine if they should be scrapped after the trial phase. Consider how the playing field is going to change in your industry, and use these predictions to help you test out new service offerings that will be highly desired in the upcoming years.
Before you focus on expanding your service offering, make sure that you perfect the services you already offer. Satisfy your clients and cross-sell them as you start to introduce the new services in the office. After you target your existing clients, you can start a marketing campaign and target a new audience who will see value in your new offerings.
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