As a service provider, there’s a variety of options for creating revenue growth in your business. Whether it’s productizing your services, raising prices, or growing a team to help you serve more people, there’s no wrong or right way to go about it.
The most important thing is for you to decide what type of business you want to be building and then go about creating the revenue growth you want.
Many service providers decide to use the team approach to accomplish revenue growth, whether it’s through an agency model or otherwise. When building a team for revenue growth, you as the business owner will focus on transitioning from solopreneur to CEO — something that can be both challenging and time-consuming.
This is why people often focus on raising prices first, which is a solid strategy for revenue growth. At a certain point, though, you may reach a price ceiling for your market. So, to continue increasing revenue (if that’s your goal), you have to find ways to serve more people, and whether you add team members you directly manage or start subcontracting in other ways, a team helps you do just that.
Determine a Hiring Strategy
Depending on the type of services you deliver, you may find hiring someone to subcontract the actual client work is a possible path towards revenue growth. If you offer services, like copywriting, design, administrative support, or web development, for instance, you could likely find someone to execute actual client tasks under your direction.
However, if you offer services that require licensed or highly specialized training to execute, you may find it more effective to hire support to help run the business and complete daily operation tasks rather than actual client work.
For example, lawyers or tax accountants have special designations required to deliver services, so it may make more sense to build a support team first rather than hire another licensed professional. This can often be a more cost-effective way to serve more clients and, thus, a more strategic path towards revenue growth.
Even if you opt to not hire someone to execute actual client work based on preferences or other requirements, a team can still help you deliver and serve more people. By adding team members to provide operations support, you free yourself up to focus more of your time on the work only you execute.
Regardless of the type of support you add, there are some key things to keep your eye on as you grow your team.
Step into Your Role as CEO
As you build a team, you’ll find your role needs to shift more towards leadership and farther away from being a solo service provider. This is not to discount the role of the service provider or solopreneur in any way. The reality is that leading a team requires different skills and considerations than managing only yourself.
An important consideration here is to ensure that you’re setting your team up for success. From ongoing communication and clearly setting out expectations to fostering strong team relationships, your role as the leader will be essential. For more on setting your team up for success, check out this post.
You’ll also likely need to focus more on delegation as your CEO duties increase. This starts by distinguishing between the tasks that truly need your attention and those that don’t. It will also mean structuring your time to ensure you have the hours for all these new duties.
As your role shifts, it’s probable you’ll have to deal with some needed mindset shifts. Running a team and creating a vision for a business that supports an entire team is very different than simply delivering services. This isn’t impossible but can take some focused effort on your part. For more on three mindset shifts to go from solo to CEO, go here.
Rinse and Repeat for More Revenue Growth
As you master adding subcontractors to help execute client work or add some operations support to your team, you’ll have to rinse and repeat every time you opt to focus on revenue growth. Going back to basics when this happens will help you strategically manage your workload and your team’s workload effectively. You get to control how often and how frequently you expand your business. Depending on what you want and what works for you, this may happen many times!
You are in charge of the type of business you want to create, so make sure that it serves you as well as it serves your clients.