How to build a successful productized service?
It boils down to 4 things: Market, Packaged services, Systems, and Team.
First question to answer: Who do you sell to?
Or in other words: Who is your target market?
But that’s not enough.
You have to dig deeper and ask yourself: Is the market ready to purchase my services?
And if so, can you reach out to them?
Some mistakes productized service or agency owners make when starting their productized service is to pick a market that is:
- Too small
- Not accessible (or difficult to access)
- Not well defined (no target niche, no buyer persona, and too vague)
So what makes a good market for a productized services?
- Defined (by serving a niche for example. Instead of “I make WordPress websites“, your niche becomes “WordPress website for personal injury lawyers“)
- Accessible (you know where to find customers)
- Readiness to buy (Is your target market ready to purchase your service?)
- Growing (that’s not a must but that way you can ride the wave of an emerging trend)
2. Packaged services
The next question to build a successful productized service is “How to package my services?”
First of all, you have to come up with a good value proposition: Are the services you offer interesting to your market?
Secondly, the idea of productized services, by definition, is to to sell services that can be bought and sold just like products.
This means they have a clearly defined scope (what you do but also what you don’t do), clear deliverables, and a set price.
So how do you package (or productize) your service?
- Scope your service offering.
- Set clear deliverables.
- Set client expectations.
- Set a clear price.
The key to grow a productized service and to free up your time: Systems.
In simple words, systems basically are guidelines that tell how your company operates.
It’s not only about how to deliver services, but everything to run your company: Lad generation, sales calls, hiring, customer onboarding, etc.
So why do you need systems?
Once you have systems – or repeatable processes – you basically created a machine that is predictable, and scalable. You then just need to assemble a team to execute those systems.
Over time you can fine tune your systems to make them even more efficient.
How to create systems for your productized service:
- Use a tool to document and update your systems (Notion, Google Docs)
- Use a client portal to manage your business (you can use our client portal, ManyRequests)
- Onboard and train your team to follow your systems
- Review systems regularly (simplify, remove, and add new procedures)
Finally, what would be a service (even if productized?) without a team.
Here’s how to create a great team for your productized service:
- Create a hiring funnel (Job posting, interview, hiring, training, onboarding)
- Use tools such as Slack or ManyRequests to manage and communicate effectively your team.
- Manage your team well by providing growth opportunities and a good working environment.
Building a successful productized service requires thus four ingredients:
- A defined and accessible market, with demand for your services.
- Standardized services, which have a clear scope, set deliverables, and fixed prices.
- Systems to help you run and scale your business.
- A happy team to deliver your services.
All of this takes time to build. If you want to share how you build your productized service, you can join our Facebook community for productized service business owners.