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Joined 11 months ago
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Cake day: October 28th, 2023

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  • 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.