What NOT to Do When Building a Service-Based Business
Building a service-based business can be very stressful. Especially if you’ve never owned a company before and have no idea what it takes to create a business that not only survives, but actually thrives.
That’s why many entrepreneurs scour the internet, looking for information as to what they need to do—step by individual step—to get their companies off the ground in a way that ensures that they’ll still be around in 10, 20, 50, or even another 100 years.
But just as it is important to know what to do when building a business, it’s also important to know what NOT to do because this can keep you from making major mistakes along the way. Mistakes that could sink your entire company before you’re even able to pull away from the docks.
With that in mind, here are a few “don’ts” to consider when creating your service-based company.
Don’t Misuse Social Media
Nowadays, businesses of all shapes and sizes use social media to improve relationships with their consumers. However, there is a right way and a wrong way to use this type of platform.
Alyssa Gregory, found of Small Business Bonfire, shares that one mistake many business owners make is not making a social media plan, so that’s step number one. Decide what you’re going to post and when.
Additionally, when posting, Alyssa says that you don’t want mislead others in an effort to increase your like-ability, fail to engage with your followers, or spam them with your sales pitches. You also don’t want to be confrontational, share too much, or constantly promote yourself.
Instead, Alyssa says you should aim to be genuine and respectful. Strive to provide value to your followers versus always selling to them.
Don’t Ignore the Market
Do you stay current on the happenings in your market? Do you know what types of issues your clients are having most often, which products and services they prefer most, or how their purchase behaviors are changing from one year to the next?
If you answered no to these questions, then you may be missing out on both current and future business solely because you ignored what the market was telling you versus listening intently so you can almost predict what will happen next.
Look for trends in your industry. Check out your competitors and see what they offer. Listen to consumers when they share what they like and don’t like about the service providers in your area.
Then use all of this information to provide a better, faster, or more effective solution to their problems.
Don’t Rely on Conventional Marketing Models
In 2011, Russell Ruffino founded Clients on Demand, a company that now earns millions of dollars per year teaching service professionals around the world how to attract higher-paying clients. And for him, conventional marketing is not part of what they teach.
In an interview with Entrepreneur, Russ compares traditional marketing models with “dragging a huge fishing net on the bottom of the ocean, hoping to grab as many fishes as you can.” While you may be lucky enough to capture a huge fish (a customer who is willing to pay higher rates) form time to time, it’s more likely that you’ll wind up with a bunch of smaller sea creatures that will take a lot of time and effort for minimal return.
That’s why Russ focuses on using newer, more innovative marketing strategies like creating short, high-impact webinars to target the right audience. This increases the number of bigger fish (better leads) in the net, ultimately enabling service providers to bring in a better haul.