Turn Your Experience into a Services Business
Good Morning!
This week, I discovered that people in the U.S. eat about 3.5 billion homemade chocolate chip cookies every year.
On the Mat
- The Recipe
- Do I have the right idea?
- How to find a good business idea
- Are you leaving money on the table?
TLDR: Finding a good business idea – like cooking – is part art, part science
Let's Train
Just like there are thousands of recipes on the internet claiming they’ve nailed the “best chocolate chip cookie recipe,” the entrepreneurial side of the web has a million recipes for a stellar business idea.
The issue is – they’re mostly geared towards tech, drop shipping, or creating some faceless YouTube channel.
Keep in mind, there’s no exact recipe for success in any kind of business.
So, I went ahead and analyzed what some of the more prominent founders were saying, tested them against my own experiences as a 7-time service business founder, and wrote my take on a recipe – maybe the first – for finding a good service business idea.
THE RECIPE
The recipe for a good business idea is as good as its ingredients. And the ingredients for a potentially successful business are 3. You have to offer a service that has:
- Protein – people need it
- Veg – you have the experience for it
- A healthy dose of carbs – you enjoy the work enough
In other words, you need:
- Demand
- Depth
- Delight
When there’s an overlap, you’ve got a service you can scale into a successful business.
This diagram is inspired by the Ikigai model -- Japanese for purposeful living
Do I Have the Right Idea?
Your idea is good if it solves a pain point.
There are two ways to find pain points:
1. The Organic Method: You have a problem yourself and need a solution. These are some of the best business ideas.
If you’ve got a pain point, don’t ignore it. Determine if you can fill in the gap with your skills. “What would you pay for right now?”
2. The Genetically Modified Method: People are asking for a service.
For example, you’re a graphic designer who specializes in designing logos, but clients are asking you to come up with full brand identity packages, including color schemes, typography, and social media templates. Run with it.
But what if you can’t find an idea?
Try manufacturing one.
Here’s how:
1. Find Overlap Where No One Else Does: Present an existing need on the market with a different edge. The best way to do this is by mixing perspectives from different fields.
When we started our business in 2003, the market was flooded with agencies selling websites. But the majority of these agencies that targeted SMBs provided poor customer service.
So, we leveraged two decades of corporate experience to delight clients. These mom-and-pop stores love it! Our polished suits, genuine care, and deep expertise would stump them.
2. Redefine the Problem: Reframing the problem is a powerful strategy when you’ve got competitors.
Instead of asking: "How can I attract more clients for my financial planning services?
Ask: "How can I help busy professionals automate their personal finances in one session while competitors require months of configurations?"
3. Go to the Edge: If you can’t observe any dead ends that need a solution, it might be because you’re still in the middle of the road. Get to the cutting edge of a service you offer and observe where you can’t push further.
Take Tony Hsieh, founder of Zappos, who revolutionized e-commerce by pushing the boundaries of customer service, offering 24/7 support and free returns for up to a year. He created a service model that prioritized customer experience above all, transforming the entire retail industry.
Next week, we’ll cover how you can vet your business idea.
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I highly recommend creating a profile for your business early on – it’s free and easy to set up.
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This guide from the Content Marketing Institute can help you get started (or to reset) with a results-oriented content marketing strategy.
Sharpen Your Blade
Which channel generates the highest ROI?
For 30 years, email has been the workhorse of online business. It remains the highest ROI channel across every industry, from garage startups to billion-dollar brands.
Compared to the alternatives, an email list:
- doesn’t have an algorithm to crush your dreams
- doesn’t rely on keyword optimizing
- doesn't make you pay-per-click
Start collecting emails early on and grow your list steadily, so when you’re ready to send marketing emails or launch a newsletter, you already have a list to start with.
Are you leaving money on the table?
Tom and Timmy are selling the same exact service, but Tom charges $200 while Timmy is able to pocket $850.
Why is it that?
Why do some consultants get to charge more, and people still buy?
I once helped a language instructor with his small business. After a few months, I told him let’s increase your fare — double how much you charge.
He freaked out, “What if the students leave?”
I said if half of them leave (which is unlikely), you’re still making the same amount of money for half of the time put in.
He was stumped and made the change.
But here is the catch. You have to know when to charge what price otherwise, things might backfire.
In my new mini-course, Effective Pricing Models, I cover a matrix you can use to choose the most suitable pricing model for your business.
14 models for $29, and for a limited time, a free session with me to go over pricing strategies you should adopt.
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