The critical success factors for a product business are well known, starting with selling every unit with a gross margin of 50 percent or more, building a patent and other intellectual property, and continuous product improvement. If your forte is a service, like consulting or web site design, it’s harder to find guidance on what will get you funded, and how you can scale your business.
BY MARTIN ZWILLING
On the product side, once you have a proven product and business model, all you need is money to build inventory, and a sales and marketing operation to drive the business. With services, scaling the business often implies cloning yourself, since you are the intellectual property and the competitive advantage. You have no shelf life, so you can’t make money while you sleep.
Indeed, there are some success factors that are common to both environments. For example, both need to provide exemplary customer service, build customer loyalty, and provide real value for a competitive price. Here are the additional success factors that are really key to a startup with a services offering:
For some entrepreneurs who feel the need to attract outside investors as a critical success factor, they should be aware that professional investors almost never invest in a services-only company. The investor perspective is that no manufacturing or inventory implies a minimal need for capital upfront. They tell these entrepreneurs to sell themselves, execute well, and grow organically.
Thus your services business success totally depends on you, your skills and resources, and your ability to bring customers to the table. You are the ultimate critical success factor for your business. Are you ready to make it happen?
Read more from AlleyWatch
CMS owned www.PayOnlyForSales.com
Pay Only For Sales dot com is a network partner of the largest reward network in the USA.
PayOnlyForSales.com Call us 631-780-4607 Watch This Video Click Here
Restaurants, Retailers & Service Businesses Pay Only For Sales Not You're Advertising
Advertise on the best websites & apps FOR FREE and only pay for in-store sales.
We Bring ChaChing ©™SM
Lower your cost of Credit Card transaction fees fast!
Accept Credit Cards Every Way Customers Want to Pay
Never Miss a Sale Again. Sign Up Now
Accept All Major Credit Cards. No waiting to get your money, Get your money daily, yes 7 days a week!
We can reverse fees to customers at your option to encourage cash transactions.
We are global and part of the largest network of business services in this space, provide direct personal customer service we have what you need for all business types restaurants, gas stations, startups, online, retail, hotel, motel, services business small business, street fair, food trucks, landscaper, contractor, swipe, POS systems for all needs.
Cha Ching Biz ©™SM