I started a service-based business three years ago, and we just hit six figures in revenue (only about 10-20% is profit). I know exactly what I need to do to expand the business and grow in profitability; however, I hate this industry.

I struggle to find qualified candidates to offer the service. The clients are extremely demanding and high-maintenance. I hate offering the service myself due to the clients.

Has anyone else started a business they hate? I don’t want to just “give up” when the company could be successful, but I can’t stand this industry…

  • WatchYaWant@alien.topB
    link
    fedilink
    English
    arrow-up
    1
    ·
    1 year ago

    I’ve scaled multiple 8 figure services businesses.

    Services businesses all have the characteristics you describe. You rely on people to deliver the service, so you don’t have a tangible product. Since it’s delivered by a person, the quality of your service varies. In all cases, there is ambiguity on what the client expects and what you deliver.

    This is why services companies are typically very low margin. You might have heard the term, but these are “elevator assets” (people) businesses.

    Scaling a service business is hard, but obviously it can be done.

    All the above considered, I’d recommend:

    • Hire someone - That’s obvious, but you need someone that likes the things you hate. Someone that likes the client problems and doesn’t let it affect them. Call this your Client Success, Client Partner or a similar role.

    • Productize the service further - A service subject to the discretion and whims of the clients or the people delivering the service will not scale. Ever. You need as much of a playbook - unemotional - as possible. Values, principles, policies that you follow. These save you in situations where clients complain, employees don’t operate the way you expect, etc.

    The last one alone will make a world of difference if you follow it. Run the business, by policy and principle; don’t let it run you.

    • hajabalaba@alien.topB
      link
      fedilink
      English
      arrow-up
      1
      ·
      1 year ago

      Excellent advice all around. Thanks for sharing these excellent points! -Home Service/Labor provider who’s been stuck just under $1MM revenue for 4 years after steady 20% annual growth the first 8 years in business.