4 ways expanding your services benefits your business
Change can be scary, but sometimes it’s absolutely necessary.
That especially applies when you’re running a technology business. In fact, if you don’t reinvent your business by adding new service offerings when the opportunity arises, there’s a good chance you’ll miss out on growth and sales.
Don’t let that happen. Instead, embrace the “as-a-service” model, and start charging a flat monthly fee for all the technology services your clients need. By doing so, you’ll be able to:
Become more competitive
When you don’t have steady recurring revenue at your business, you stress over whether or not you’ll make enough money every month. That stress forces you to focus on keeping your business afloat, and robs you of the time and flexibility you need to take business risks and work on your long-term growth strategy.
But what if you added new practice areas to your business that did result in steady recurring revenue?
You could be bolder in the way you run your business knowing that your cash flow would remain the same no matter what. More specifically, you could go after harder-to-land clients, pursue new projects you wouldn’t have time for otherwise, or take action in other ways that would make your business more competitive.
Make more money
What do you think would make your business more profitable in the long run – handling lots of one-time projects, or consistently taking on long-term clients who you build a business relationship with?
Obviously, having clients who pay you regularly will help you make more money consistently. While it may take some time and effort to start offering new service bundles that attract consistent clients, it’ll be well worth the greater long-term profitability, and success for your business.
Become stickier with your customers
If you just sell your clients technology, they’ll likely shop around for a better price. After all, they can probably get similar products from your competitors.
On the other hand, if you sell clients a service bundle, and position yourself as a helpful advisor who teaches them how to use technology to reach their business goals, they’ll see you as indispensable. In other words, they won’t just up and leave the second they see that someone else has a cheaper offering – you’ll be too valuable to their business for them to give you up!
Increase the value of your business
When investors determine the value of your business, they look at 3 things:
That means you need to show that your business can generate predictable recurring revenue. And expanding your service offerings by implementing the “as-a-service” model is the best way to make that happen. Then, when it’s time to sell your business, or pass it on to the next generation, you can feel confident knowing that it’s valuable.
To sum up:
When you expand your service offerings, you’ll be able to make more money, grow and increase the value of your business, and enjoy your job much more. And at the end of the day, that’s what entrepreneurship is all about – building a business you’re passionate about, and proud to own.