There are more than 32.5 million active small businesses in the U.S. Of those entities, 4.5 million (about 14%) are service-oriented ones.
The service industry is wide-reaching and ever-growing, encompassing the fields of professional, technical, and scientific services. Are you preparing to enter this space yourself?
As a business leader, you need to be prepared for the competitive corporate marketplace that awaits. Succeeding in this sector is possible, but only if you keep certain key tenets in mind. Today, we’re sharing how to help your business stand out — and earn the longevity it deserves.
Find a Specialty
One of our first and most important business tips is to narrow down your focus. You might be at the helm of a service business, but you can’t serve everyone.
Before opening your doors, create a persona of your target buyer. Do you want to attract single twentysomethings with discretionary income? What about busy moms on a budget?
There’s no right or wrong answer, but you need to be clear with your response. Trying to appeal to a mass audience often backfires because it leaves too much gray area in your expertise. Consumers want to know exactly what you’re offering and why they should choose you over the competition.
This is why it pays to specialize.
Once you know the kind of service you want to offer, don’t stop there. Keep getting smaller until you’ve identified an untouched niche that no one (at least in your region) is offering yet. This might not mean creating a brand-new product or disrupting an entire industry.
Rather, it might mean setting your sights on a core feature that puts your company heads and shoulders above the rest. If you’re running a repair shop, can you offer same-day service that’s faster than the closest competitor? If you own a hair salon, can you provide more treatments than anyone else?
Don’t be afraid to go niche. While you might loose a few customers in the process, you’ll ultimately achieve your goal of just attracting qualified buyers who need exactly what you’re offering.
Prioritize Word-of-Mouth Advertising
Thanks to the Internet of Things (IoT), we’re all more connected than ever before. That means there are countless channels on which you can advertise your business.
Not sure how to cut through the noise? Focus on word-of-mouth advertising, both in person and in the digital space.
Online, create content that your followers will want to consume and share with others. This might be an informative or entertaining social media post or a helpful blog article that answers FAQs about your industry. Whatever you create, encourage viewers to engage with it and tell their community about it.
In person, request reviews and testimonials from clients who have used your services in the past. Establish a referral program and reward them when they help you find new clients. Create loyalty cards they can activate with each purchase and redeem for incentives, such as a discount on their next purchase.
This business strategy is especially helpful for service businesses, which traditionally get more face time with customers than other entities. Your brand image hinges on your reputation, so prioritize interactions that build your network, delight your buyers, and expand your reach.
Invest in Employee Training
Your employees are the face of your brand. This is true of any business, but it’s critical in the service industry. If your buyers encounter team members who are rude, dismissive, or disengaged, they’re unlikely to patronize your company in the future — and they’ll also spread the word.
While you can’t avoid negative feedback altogether, you can help curb it by making sure your employees are well-trained. They should be qualified and experienced in your sector and able to speak confidently about the service they’re providing, but don’t stop there. It’s also important to train employees on how to conduct a successful customer interaction.
Take the restaurant industry, for example. There are certain protocols your employees should know to follow, including state mandates like California RBS training that teach servers how to serve alcoholic beverages safely and responsibly. In addition, they should also be well-versed in your restaurant-specific policies, such as how to speak to patrons, how to share the daily specials, and how to handle conflict.
You can’t over-invest in service training. Well-trained employees can do more for your service business than any formal marketing campaign ever could. People are going to talk about their experience at your establishment and the face of your business matters.
Budget Accurately
Too many well-meaning service businesses have gone under simply because their owners didn’t know how to manage their expenses.
As you plan your operations, start by measuring all of your anticipated costs. While the big-ticket expenditures like your lease, utilities, and supplies matter, don’t forget to account for the little things, too. Calculating every expense is the key to thriving, not just surviving.
Once you have a figure in mind, go ahead and increase it. Most estimates fall short of reality, and you’ll need a fall-back fund to stay out of the red. In addition to business-related expenses, you may also need to take certain personal payments into account, such as:
- Gas or transportation
- Food
- Healthcare
If you fail to account for these charges, you could wind up covering them with money from your business budget. Keep your personal and professional accounts separate, but make sure both are well-stocked before moving forward.
Succeed and Stand Out in the Service Industry
Opening a service industry can be immensely rewarding — and profitable. The key to lasting in this space is consistently providing a quality service that your target users need or want. At the same time, it’s equally important to grow your network, invest in your employees, and take a close look at your finances before taking the next step.
All of these considerations can help you enjoy a long and fruitful career doing what you love. Looking for additional advice as you jumpstart and grow your company? Be sure to check out the other guides in our Business section for more insider insight!