| One Product/Service/Client Does NOT Make a Business
Recently a new client came to me in total frustration. She
had been working with another coach, who had insisted she
focus on offering, and aggressively marketing, only one
service. Now she was out of energy, out of money, and
couldn't understand why she was failing. A great
salesperson in her previous work, she was struggling to
sell enough of this one service to support herself.
This talented and skilled professional was on a slippery
slope to a failed business. She was using one of the most
enticing and dangerous models for the direction of her
business: Offering just one service to just one market.
One service, one big client, one product, does not make a
one-person business that can thrive.
And, it can get you in hot water if your one client with
your one product/service is corporate: you start to look
too much like an employee to keep the IRS happy.
So, what's the answer? For this new client, my first
question was, 'Have you done the numbers?'
Her blank look was enough of an answer. So, we walked
through the numbers process: how many contacts she needed
to generate a lead. How many leads to make a sale. How long
the sales process took in both hours and days. How much it
cost out of pocket to develop a paying customer. How long
to deliver the service. How much she needed to sell to
cover her expenses, to generate enough to get by, and
provide a quality life for herself. And, how long before
the customer was ready for the next service session.
The answer to her problems was very clear. She needed to
sell six new clients a week to get by on, to pay her bare
living expenses. But, it took significantly more time than
40 hours a week to generate the leads, close the sales, and
deliver the service. More like 80 hours a week.
She had also not taken into account the amount of money her
marketing and sales was taking, as well as the money needed
to produce the service. So, although her target was 6 sales
a week, she really needed to make at least 7 to cover both
the costs of production, and the money she needed to cover
her living expenses.
An undoable plan!
The answers to her dilemma were the strategies one-person
business owners need to consider for themselves. What kind
of multipliers can you implement so you can provide for
yourself in a manner to which you would like to become
accustomed, and at the same time provide quality products
and services to your target market.
Start with a commitment to yourself that you will never
again have just one service/product for one market. Aim for
at least three service/product offerings in 2-3 markets. (I
know when you are starting out, it is hard to develop all
three at the same time. Just make sure it is in your plan,
and then work your plan.)
Devote your next executive meeting with yourself to
reviewing your product/service packages. Look for ways you
can multiply your efforts, or transfer your current
offerings to another market. Ask yourself:
==> Is it time to make one of your service packages into a
stand alone product you can make once and sell, sell, sell?
Consider ebooks, workbooks, resource guides, and quick
start guides to using a product or service. Don't forget
add-on's, hard-to-source supplies, and specific tools.
==> Can you bundle stand alone, or individual services into
an ongoing coaching, consulting, retainer agreement with
your existing or new clients?
==> Can you service a number of clients at the same time?
They can get the benefit of learning from one another, and
lower individual fees while still increasing your total
income/time. Consider teleseminars, group coaching, group
counseling or therapy, seminars, workshops or training
classes.
You can also look at unserved potential clients in the work
you are already doing. Many professional speakers develop
products or services so their audience members can take a
part of the speaker home with them, or continue learning
more than what was possible in one presentation. Consider
what you could offer the executives who make the decisions
to hire you. Or, additional products or services for
meeting planners. Three different potential client
bases all in the room with you when you are presenting. Do you
leave them wanting more? Do you have products and services
just for them?
Bottom line -- One product, service or client doesn't make
a viable one-person business. Make a commitment to yourself
to build a stronger, more profitable
business.
Reprinting and
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