Building a scalable service business

By Pavlo Phitidis

Almost every business owner claims that it’s their service that sets them apart from their competition. What does that really mean though, beyond the jargon and big claims and, is a high service level truly sustainable when you’re a product-focused business?

Every business is a service business and every business should build a scalable service system.

As an enthusiastic and new business owner, the service you provide to your very first customer is, quite often, exemplary. You go above and beyond to ensure that they are well provided for, but what happens when you reach customer number 100? That level of service is not sustainable, and that’s why the secret to service lies in the systems you create. 

Aristotle knew a thing or two about this, when he so famously said: “We are what we repeatedly do”. Shifting your business towards being service-oriented is vital for your success, as an effective service system will enable you to maintain the service level your customers come to expect, providing you with repeat business and longevity. 

We have also learnt a thing or two. In Pavlo's conversation with Bruce Whitfield, some of that insight was discussed in this radio show here: 

Let’s look at three businesses that shifted their focus from product to service, with great success:

Contextualise your service for your customers

Building a customer relationship management (CRM) database is an effective tool, that not only provides you with excellent information about your customers, but also helps to improve your service offering. A hotel that worked with Aurik put a unique spin on their guest check-in system, and each time someone checked in, they’d be asked a set of pre-determined questions. These leading questions enabled them to know their customers better, but also personalise their experience of staying in this hotel a little more. For example, during the check-in process, the reception desk agent asks guests what type of wine they enjoy and, when the guest comes down to the dining room to enjoy their evening meal, they’ll be presented with that very wine at dinner. How would that make you feel and who would you tell?

Move beyond the once-off sale

If you focus on the product your business provides, you’ll never move beyond a once-off sale scenario. Turning a once-off sale into a ten-year service, as this company who worked with Aurik did, is indeed possible, through focusing on the service, rather than the product. A retail store that manufactured and sold children’s bedroom furniture became frustrated with the seemingly once-off sale nature of his business, so he reduced his range and focused on ways to create long-term customers. Building themed bedroom sets for specific age groups, he went on to offer his customers a 50% discount on the original purchase price, if they purchased the set for the following age group, when their child had grown out of the first set. This enabled and inspired a long-term relationship, and invigorated his repeat business. Imagine the impact on his business valuation!

Building a service-driven business that solves a problem, rather than focusing on selling a product, is essential for ensuring the longevity of your business. A local supplier of baking equipment who worked with Aurik, enjoyed much success through his company, which provided hotel groups and retail stores with this equipment. A little further along into his business journey, however, customers were beginning to complain about the supplied baking equipment but, with so many variables at play, it became difficult to isolate the product problem. By flipping his business from focusing on the product, towards solving the problem, however, this business owner created a service-driven company that has happy, long-term customers. Rather than just supplying the baking equipment, he turned his business into the bakery, and now provides freshly baked goods to his customers, every day. His revised system solved his customer’s problems, using his product, by applying an effective service system. Today, having gotten rid of their internal bakeries, they rely entirely on him for their baked goods - It’s called annuity revenue!

Good, consistent service is not an act – it’s a system. Can we help you shift your business’ focus from product to service, and build effective systems that’ll help you create an asset of value? Yes, we absolutely can.  Get in touch with our team at Aurik and let’s build your business into one that serves your customers, and your business. 

 

Big Questions from Business Owners Like You
The Money Show Growing business value Growing Business Systems

Big Questions from Business Owners Like You

On The Money Show with Bruce Whitfield, Pavlo Phitidis set out to answer some big questions from business owners, like you:

Read more

Small Business Financing: To Debt, or Not to Debt?
Business Opportunities The Money Show Business Growth

Small Business Financing: To Debt, or Not to Debt?

Finding the right small business financing solution for your growing business is critical. Is going into debt the right option...

Read more

How to Protect Your Margins & Grow Your Business in a Cost Inflationary Environment
The Money Show Accelerating Growth Business Growth

How to Protect Your Margins & Grow Your Business in a Cost Inflationary Environment

Everyone is beginning to feel the pressure of an increase in VAT, petrol levy, and other price increases. Rising costs will...

Read more

The Key Components of Collaboration
The Money Show Building your Business Business partnership

The Key Components of Collaboration

While we’ve been looking to fill 13 positions within our company, Pavlo has also been dealing with several international...

Read more

How to Present Yourself Online
The Money Show Building your Business Strategy Online business

How to Present Yourself Online

How you present yourself online is an all-important component for your personal, and business, brand. On this week’s The...

Read more

Business Accelerator 2018
The Money Show Business Development Building your Business

Business Accelerator 2018

Business accelerator programmes can be great catalysts for your growing business. Getting the right kind of help as a business...

Read more

How to get the right headspace to survive and thrive in tech-driven opportunities and change in your business
The Money Show Building your Business Business Growth

How to get the right headspace to survive and thrive in tech-driven opportunities and change in your business

Increasingly, technology plays a deeper and more pervasive role in business, and in our lives. Importantly, technology that...

Read more

Building the future we want as business owners in SA
Business Opportunities In the News Positioning your Business

Building the future we want as business owners in SA

South African entrepreneurs can play a big role in bringing the promises made during this year’s State of the Nation Address...

Read more

Kushesh Express, achieving rapid growth in a competitive environment
Growing business value Asset of Value Building your Business

Kushesh Express, achieving rapid growth in a competitive environment

Kushesh loosely translates to “very quick” and is a fitting name for courier company Kushesh Trading, which services the...

Read more

Innovation and Entrepreneurship
Blog In the News The Money Show Innovation

Innovation and Entrepreneurship

I recently hosted an innovation workshop for more than 100 franchisees and a franchisor of a well-established, successful...

Read more

Small Business Venture Capital Investments: What You Should Know
The Money Show Growing business value Building your Business Business Systems

Small Business Venture Capital Investments: What You Should Know

Section 12J investment funds are an attractive option for investors. When first created during the mid-1990s as part of the...

Read more

Build Your Business with these 5 Habits
AoV Mindset The Money Show Asset of Value Building your Business

Build Your Business with these 5 Habits

Welcome to 2018! A whole year ahead, to plan, implement, and prosper. I hope you had a great break, and were able to gain...

Read more

What Entrepreneurial Opportunities Await in 2018?
In the News The Money Show Growing Strategy

What Entrepreneurial Opportunities Await in 2018?

The tumultuous events of 2017 have already shaped the entrepreneurial opportunities for 2018. The innovators respond first,...

Read more

Start your Strategic Planning for 2018
The Money Show Growing business value Business Strategy Business Growth Strategic Planning

Start your Strategic Planning for 2018

2017 has been a rough year, for everyone. At every level, corruption has put paid to so much, and the dismal economic growth...

Read more

How to write the right kind of business plan
Business Opportunities The Money Show Business Systems Business Growth Business Plan

How to write the right kind of business plan

I’ve recently read through oodles of business plans, with a sample of ten showing me that: 4 were applying for growth funding;...

Read more

A Succession Planning Strategy for Your Business
The Money Show Succession Business Exit Business Succession

A Succession Planning Strategy for Your Business

The resignation of Robert Mugabe and the current race for power within the ANC have highlighted the importance of succession...

Read more

Critical strategies to future-proof your business
Growing business value Business Development Growing Focus Business Growth

Critical strategies to future-proof your business

Even for established businesses, it’s not easy to make sure that you will be ready for whatever might happen in the future....

Read more

How to start a business (or your career) from nothing
The Money Show Creating Time Growing Goals

How to start a business (or your career) from nothing

My recent meetings with people across the country have revealed that we have so much human potential, and yet such low morale....

Read more

Learning Resilience, to Build your Business during Tough Times
The Money Show Growing business value Building your Business Growing Accelerating Growth

Learning Resilience, to Build your Business during Tough Times

Simply reading the news headlines can be downright distressing, and government’s lack of adequate response towards corruption...

Read more

How to build your Business into an Asset of Value that is ripe for selling
Growing business value Asset of Value Sales Accelerating Growth

How to build your Business into an Asset of Value that is ripe for selling

Every business owner should be concerned about whether they will be able to sell their business for a good return when they’re...

Read more

What to do when you’ve made the wrong investment for business growth
In the News The Money Show Growing Strategy Accelerating Growth

What to do when you’ve made the wrong investment for business growth

Earlier this week, the South African Minister of Finance presented the Medium-term Budget, and the news was somewhat disheartening....

Read more

Get with the Aurik programme to ensure company growth
Growing business value Business Development Building your Business Company growth

Get with the Aurik programme to ensure company growth

Business owners are bracing themselves for tough economic times with SA’s downgrade to junk status and a gradual economic...

Read more

From a small family-owned business to an internationally recognised operation
Case Studies Business Development Family Business

From a small family-owned business to an internationally recognised operation

How did Liquid Movers quadruple their baseline turnover? The family-owned business joined the Aurik programme to grow its...

Read more

Delegate, you must: if you want to sell your business one day
Asset of Value Sales Business Exit

Delegate, you must: if you want to sell your business one day

Despite what you may think or feel, doing it on your own won’t set you on a pathway to success. You can’t build a business...

Read more