In this episode of Futurecrafting™, Patrick Kizny dives into the deceptive allure of expanding your service list without considering the hidden costs. While it might seem beneficial to offer more services, Patrick argues that this approach can dilute your focus and jeopardize your business’s profitability.
Key Takeaways:
The No-Cost Illusion: Adding more services to your portfolio might appear cost-free, especially during slow market periods. However, this expansion often comes at the expense of clarity and focus.
Client Variety and Challenges: Offering a wide array of services attracts different client groups, each with unique needs and expectations. This diversity requires mastering multiple service processes, complicating client engagements and increasing unpredictability.
The Real Cost of Expansion: Without a well-designed and tested process, managing various services can lead to inefficiencies and missed opportunities. Charging by outcomes under a fixed model can hurt your bottom line, and even hourly rates may result in leaving money on the table.
Strategic Service Offering: Patrick emphasizes the importance of having a service scope that aligns with your business capabilities. Mastery and confidence in delivering each service ensure better control and profitability.
Balancing Expansion and Focus: Instead of broadly expanding services, focus on a strategic selection that you can confidently manage. This approach helps maintain quality, client satisfaction, and ultimately, business success.
Patrick underscores the need for strategic insight and external perspectives to refine service structures and ensure sustainable growth. By understanding the real costs of service expansion, creative firms can avoid common pitfalls and enhance their profitability.
Stay prolific, and till the next one!
