Service-based businesses such as cleaners, hair stylists, and massage therapists thrive on in-person experiences. But in many cases, there are digital alternatives to doing your work. See how you can identify new methods of creating revenue during a recession.
- Service-based businesses are built on relationships and history has shown us that during times of struggle and turmoil, we actually feel more connected to the people that we care about. And that's an opportunity for you to build and strengthen your relationships with your existing clients and customers, but you might have to support them a little bit differently. Think about how you can support them digitally. If they can't come to you, go to them. Help them do something DIY. That might be doing live or prerecorded videos. If you can teach them to do haircuts from home or do their own nails, that's a new way that you can support your customers. Even if you're sending them recommendations on what products to use. Second, think about how you can introduce a monthly recurring revenue component to your business. I have a friend who's a web developer. He used to just charge for the websites that he built. But he changed his model so that instead of just building the website, he charged a monthly fee to build the website, update the website, maintain the website, improve the website. And so now, instead of just going project to project, he has monthly recurring clients that he can count on. And finally, make it really easy for your clients to refer other people to you. Obviously they're working with you, they like the work that you do. They're likely to refer people anyway, but maybe you can give them a referral fee, or a bonus, for anyone they refer. Let them know that you appreciate referrals, why they should refer people to you and make it really, really easy. When you build and strengthen your relationships with your existing clients, they're much more likely to go to bat for you, be an advocate, and refer other people your way.