People ask me what’s the best way to build a service-based company to generate more dough. Well, let me tell you something about the business building pyramid--the foolproof way of starting your business from the ground up, fast.
The problem with many budding entrepreneurs is they focus all of their time, resources, and energy at the lowest point, such as the free webinars or downloads of your content. This works when you’ve already established authority and a good foundation for your business. But for starters, you need to concentrate on the high dollars.
Ultimately, what you want to do is connect with your clients, provide a one on one service. This will be your 4 to 10 (hours a week) clients. Starting this way gives you an opportunity to sell at a premium price. The way this goes is you take your annual revenue, divide it by a number between 4 to 10, to identify how much you need to charge for each scope of your services. Doing so can generate you enough revenue to go for months, and help you climb the top of that pyramid.
Now that you have an idea on how to manage your 4 to 10 clients, you can now move on to your mid portion. This refers to your one to many, or where it’s you or someone else providing the services. This part is terrific for scalable service-based companies because, at the end of the day, the goal is to keep things moving swiftly. When you contemplate on starting as an entrepreneur, look into B2B, high-end B2C, and service-based clients.
This is how you start a business--connecting with prospects, finding value in your ability and skills, and pricing it accordingly. Not the other way around where you offer free services to build to the top.
Tell me, how are you offering and promoting your services? Share your thoughts in the comments below. I’m interested to know what works for you and what doesn’t. Let’s build each other up!