Strategy February 28, 2019
How to Build a Service Business
Q&A with Doug Fletcher, founder of Fletcher & Company, a marketing consultancy that specializes in strategy, analysis, research and planning for small to medium-sized business services and B2B companies.
Q: What’s the most important thing to know about building a service business?
A: Nobody likes to be sold to, but everybody loves to buy. People love to get research, kick the tires and look at options. As soon as you feel you’re being sold, it’s not fun. People tend to hire people they know, respect and trust. Your job is to know lots of people, be respected in your profession and be trustworthy. Do that over time and you’ll build a successful business.
Q: Why don’t people like being sold to?
A: We have this perspective of the used car salesman trying to manipulate and persuade us. If someone sniffs that you’re trying to sell them something, it’s a turnoff. The goal is to not sell anybody anything, but to help the client’s buying journey.
Q: What’s the difference between selling a product and a service?
A: Products are typically sold based on things like features, size, speed and weight. On the other hand, services are sold based on reputation, referrals and relationship. You have to understand the client’s buying journey and earn their trust.
Q: How do you establish trust in a buyer?
A: Trust is the hardest because it can’t be expedited. Everybody comes to that on a different timetable, depending on a person’s makeup. It’s up to them, not you. With any first-time client, trust is the hardest thing to build and must be built one day at a time by demonstrating you have your client’s best interests at heart. Once you get that first customer, you have to do great work. It’s hard to get repeat business and referrals if you don’t do great work.
Q: How can you sell yourself in a price-based business?
A: You have to differentiate yourself. You have to develop your own style. You have to be true to who you are. If you’re great at networking, go to a social function. If you’re not a natural social butterfly, don’t try to be that person. Write a column in an industry trade magazine or become a public speaker at events.