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How to Build a Scalable Service Business | MarketBox

How to Build a Scalable Service Business

What is a scalable business? 

A scalable business is defined as a business that grows in revenue and market share without a proportional increase in the resources required to achieve growth. In other words, a scalable business can expand operations without a significant increase in costs or decrease in profitability. 

Why is it important to build a scalable business? 

A scalable business is important for people who want to turn a side hustle into a full-time job or anyone looking to increase revenue. For companies that want to expand rapidly or enter into new markets successfully, a scalable business model is essential. 

7 ways to build a scalable business 

#1. Develop a clear vision for your business 

The first step to developing a scalable service business is to have a clear vision for your business. You should have a thought-out idea of what the company is and where you want to take it. 

Developing a scalable business model includes planning for 

Having a clear vision is essential as it will help you create a growth roadmap and influence your decision-making process going forward. 

#2. Make use of technology (preferably early on)

Another key step to building a scalable service business is to utilize technology. Ideally, you want to put software solutions in place as early as possible, although it’s never too late to make the switch. 

To keep costs low, look for an all-in-one software like MarketBox that will handle your customer booking, employee scheduling, and payments. Appointment management software will automate all of the admin tasks associated with running your service business, so you’ll never have an issue of mountains of paperwork holding your growth potential back. 

Related: Software to Implement in Your Service Business Today

#3. Hire the right people

The success of a service business relies heavily on the quality of its services, and nothing has a more significant impact on service quality than the people performing them.

Knowing how to hire the right people and when is the key to building a scalable business that can sustain growth. Hiring new service providers is also an easy way for service businesses to scale, particularly if they offer mobile appointments. Without the delays and expenses associated with finding a new business premise, mobile service businesses ready to grow can just hire new service providers in new locations to expand their service areas.  

How to attract & retain high-quality employees 

  1. Offer a competitive salary 
  2. Offer flexibility around schedules and/or working location 
  3. Ensure the company has a culture that supports a healthy work-life balance, including vacation packages, controlled overtime, and adequate staffing levels to avoid overworking employees 

Related: How to Improve the Hiring Process (8 Hiring Mistakes to Avoid) 

#4. Focus on customer needs 

To build a scalable service business, you need to offer a service that customers need (or want enough that they consider it a need!). You must understand customer pain points and how your service offerings can fix/eliminate them, always focusing on the customers' needs and preferences. 

How to identify customer pain points 

  1. Send surveys and gather feedback from current customers (monitoring reviews can also help) 
  2. Carry out market analysis, looking at broader trends in your industry, how competitors offer/market their services, where customers go to find services 
  3. Host focus groups 
  4. Create an ideal customer profile (ICP) to use as the basis of your decision making

#5. Use data to your advantage 

One of the advantages of using software to scale your business is easy access to data and insights on your customers, employees, and business as a whole. Collect data and pull reports regularly to monitor the health of your business and use the insights to make thoughtful, data-driven decisions about the future of your business. 

#6. Keep overhead costs low (without impacting service quality)

Another key step to building a scalable service business is keeping overhead costs low. The old saying goes you have to spend money to make money, but if you’re consistently spending more than you’re bringing in, it will be impossible to scale your business and sustain the growth. 

One easy way to keep overhead costs low as you scale your service business is to diversify into offering in-home and mobile service appointments. By carrying out services in customers' locations, you don’t have to maintain a fixed premise (or open up an additional location). You can then pass these cost savings onto customers, offering competitive prices to help you beat the competition. 

Related: Are mobile appointments the future of service businesses?  

#8. Be adaptable 

Finally, to build a scalable service business, you need to be adaptable. Don’t fall into the trap of trying to maintain a business model that you think should work but isn’t. Customer preferences change, markets evolve, and sometimes the people you initially thought would be your customers are not a perfect fit after all. 

Be open to new ideas and opportunities and be prepared to make changes in response to business insights and market trends

How MarketBox can help you scale your business

MarketBox is the first appointment management software designed specifically for businesses offering in-home and mobile services. The all-in-one platform makes it easy to scale your business by putting your bookings, scheduling, and payments on autopilot so your team has more time to focus on your customers. 

Book a demo with one of our resident experts to learn more.

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