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5 Reasons Why Your Service Business is Not Making Money

Your service business will grow to the level of how well you deliver your service. You cannot afford to be mediocre if your goal is to make money.

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Why your service business is not making money
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Making lots of money is the goal of every business owner. This is the case whether the business offers a service or sells a physical or digital product. Every business has to make money to remain in business. But, do all businesses really make money?

Do all? Wait! Before you answer that question, answer this one. Is your service business making money? 

I think the reason you are reading this article is because your service business is not making money. Or it is not making as much money as you desire. There are 5 likely reasons why your service business is not making money.

These 5 things affect service business whether online, onsite or hybrid. It does not matter whether the business is in Europe, Australia, America, Africa or Far East Asia. These 5 reasons, also, are why people patronize a service business.

No one patronizes a business because it has what they need. If that were the case, no business would suffer bankruptcy.

They can see that you can provide the service they need and still hire another person to do it. This is the sad reality of many service-oriented businesses.

The following are the reasons for that.

1. Your Business is Not Top of Mind

Which brand comes to your mind when you are thinking about toothpaste? What about a television set? Let me indulge you one more time. Whose name comes to your mind when you need the service of a plumber?

All the names that came to your mind are at the top of your mind. How many of your potential customers think about you when they need the service you provide? Do they even know you provide the service?  

The businesses that get to the top of the minds of their clients get there intentionally. And because they are there, they take a huge part of the market share. They do this through consistent content marketing. Even well-established brands still do this.   

You can do it too. One way to do so is to constantly educate your market about the service you offer. What this means is that you should create written, video and audio content about what you do. Create them and share them. Share them everywhere your potential customers are. 

Educating your market can never be too much. It is better to over-educate your market than to under-educate it.

2. Your Customer Service Relation is Poor

Every customer patronizes your business is a part of your business’s sales team. The good thing about this sales team is that you do not pay them. Their impression of your business is the remuneration that drives their marketing.

Your customer can run down your business or bring other customers to it. So, you cannot afford to leave a bad impression of your service in your client’s minds. That is if you intend to make money from your service business.

Treat your customers well. Treat them in such a way that they return and even recommend you to their friends. This is possible when you deliver when you say you would. It will happen when you are efficient and offer premium value.

Pleasing your customers/clients is positioning your service business to make money.

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You Don’t Request for Feedback

Feedback is a crucial aspect of your business. It is the impression the service you provide makes in the minds of your clients. This is input that can do your business a whole lot of good.

How you see your business is often not the same way that your client/customer sees it. This is because they don’t have the blind spots or biases you have. Another reason is their experience with your competitors.

Working without feedback is working blindly. Sometimes, the feedback can be about something so little. And that little thing can make you lose your market share to your competitors. So, you cannot afford not to have it,

There are many ways you can get it. You can send a feedback form to the emails of your clients. This can be sent after completing a job or much later after the job is done. You can also ask them orally.

Whichever model you adopt does not matter. What matters is that you get the feedback. It is not enough to get feedback from your client/customer. Use it!

You are Under-utilizing Social Media

Social media is the world’s largest gathering of people. Blacklinko.com reports that as of October 2023, the number of people using social media is over 4.95 billion. It adds that 80.8% of the world’s population on social media is aged 18+ years.

Social Media has your potential clients. E-commerce platforms have made it possible to do business between countries and continents. At present, your service business does not have any reason why it is not making money.

Not only are your potential clients on social media, but your competitors are there too. They are aware of the market that social media has and they are milking it. They are using storytelling and other marketing strategies to win clients to themselves. You should too.

Pay someone to optimize your social media page so that it attracts your potential client. Or you do it yourself. It has to be done if you will not lose your part of the market share.

Your Expertise

Will you call back a plumber who did a bad job the first time he offered his service to you? I am sure you will not. In a world where your replacement is not hard to find, you have to be the best.

Your service business will grow to the level of how well you deliver your service. You cannot afford to be mediocre if your goal is to make money. You may get called upon the first time. You will not be called the second time. So, skill up!

Do only the things you know how to do the best, outsource the others. Doing the jobs you know little about to make extra money is unwise. Because you are not an expert in them, your work will be poor. This could affect your reputation which will affect your earning potential.

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Conclusion

Every business should be profitable. It is the sole reason why businesses are started in the first place. When this is not the case, it is because of a knowledge gap. What you need to know is always the reason businesses are not making money.

This article has the answers to 90% of the solutions to the lack of profitability of most businesses. Applying one of the 5 things discussed in this article can change things for you. Find it and work on it.   

Your business should make money.  

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Eneye Lawal is an SEO writer, author and contributor at EntrepreneurBusinessBlog.com. Using his storytelling skills, Eneye covers the finance and business categories of our blog. You can connect with him via email, [email protected].

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