Learn seven ways to expand your service business, in order to make more money and increase your profits.
As a service business, would you like to know how to attract more customers and increase your profitability?
Have you thought about expanding your business to offer other valuable services to your customers and prospects?
There are only so many ways to expand your service business, in order to make more money and increase your profits:
Many service providers are great at what they do—whether it’s pest control, lawn care or HVAC maintenance—and they work hard at keeping their current customers happy and acquiring new customers.
But for different reasons, they don’t realize that one of the best ways to grow is to offer new services that complement what they already provide!
While there are some challenges to expanding a service business, it’s not as hard as you may think….and the benefits are well worth the effort!
Here are 7 things you need to consider in order to expand the right way.
1. Determine the best service lines to add. Some companies will find it easier to add new service lines, depending on where they are starting out.
For example, if you are currently providing 100% pest control, it is not too big of a stretch to consider offering lawn care services—or even an ancillary service such as mosquito control to start to “branch out” beyond just pest control.
It may be harder to conceive of adding something outside your “comfort zone,” such as pest control and HVAC maintenance. But it just may involve providing your existing pest technicians with some additional training and certifications—or perhaps hiring or contracting a few HVAC specialists.
A few of the best ways to gauge the types of new services you should offer is to survey your customers. What else do they need while you are at their home or business? Ask them, if you added X, Y or Z—how likely would they be to consider using you instead of another provider?
You should also research what other competitors with multiple service lines are offering. Who is doing a good job at maintaining awareness and trust as they expand? Are there any obvious gaps you can fill in your service area?
2. Research additional business requirements and licenses. You may need to obtain industry-specific licenses or certifications. Your nearest Small Business Administration (SBA) office is an excellent place to get advice on every industry category’s requirements. They can also help you develop financial statements and projections.
3. Determine new skills and training that are needed. Along with specific licenses, do your homework to see what training is available at local community or technical colleges.
4. Consider the impact on your brand. Depending on your company’s name and reputation, it might seem tough to add new services. For example, having a name like Pete the Pool Cleaner might not be ideal if you start pitching tree removal services!
You might consider using a separate name under your “main” identity, also known as “Doing Business As” or DBA. Longer-term, it might make sense to rebrand under a broader “umbrella” name—in this example as something like Pete’s Complete Home & Pool Services.
5. Join forces. Some companies get bigger through acquisitions or mergers. This is not the easiest process, and there are many factors to consider. The best place to start is by consulting with an M&A advisor near you.
6. Develop a marketing plan. Once you commit to adding new lines of service, it’s imperative to promote these to your existing and prospective customers. You will want to consider the most effective ways to reach out, which could include emails, flyers, door hangers, social media posts and online ads.
7. Use the right software. Today, it’s essential to have the right software to run your service business—especially for technicians out in the field. To expand into different service lines, you need to make sure you are using a software platform that can grow with you.
Unfortunately, many systems are designed to meet the needs of just one niche such as pest control.
At Evolve, our software is capable of scaling to serve the needs of dozens of different field service “specialties”—ranging from appliance repairs and bedbug remediation to handyman services, holiday lights, lawn care, mosquitos, termites and more!
If you are unsure whether your current software can give you the capabilities you need, contact us to review your needs and schedule a demo.