By Karl Sakas
allanlau2000 / Pixabay
Adding new services can grow your agency… or create expensive headaches. See how to do it right!
Adding new services can be a great way to grow your agency. In addition to serving new markets, you can better serve (and better upsell) your current clients as well. But it can also be a great way to lose money fast, if you don’t approach it strategically.
Here’s my guide to strategically adding new services at your agency, once you’ve chosen a service to add—what to consider beforehand, how to equip your team, and how to price and sell your new services.
This is 3,000+ words, so pour yourself another cup of coffee and let’s dive in!
Before you add new services
An agency owner in Houston asked me for advice on how to add new services to his agency. He was looking at adding two new services. One was a service he’d previously outsourced—video production. The other was one he hadn’t offered before, but that closely related to his team’s expertise—sales enablement.
He wasn’t sure how to approach adding new services in a smooth, profitable way. He wondered about how to decide when to hire new people vs. using his existing team, how to price new services, and how to sell new services.
Article scope: You’ve already validated market need
In this article, I’m focusing on what to do when you’ve already identified the service to add. That is, I won’t get into evaluating potential services, testing market demand, and building the business case for the service—I’ll discuss that in future articles, but for now, I’ll assume you’ve already validated the baseline fit.
For example, one of your current clients has asked you to add a service that expands on something you do already, you know they have budget for the work, and you know other current or prospective clients would buy the service, too.
Questions to ask yourself before you proceed
Before you commit to adding a new service, be sure to test the market and ensure there’s a need, and your team is equipped to deliver.
Any time you add a new service, there are certain implications. They vary by agency and service, but it’s usually a combination of the following.
- You have to market your new service. Is it a service that your clients are already requesting, or do you need to cold-pitch it?
- You need to figure out pricing. If it’s something you’ve never sold before, how do you price it?
- You need a sales process. How do you qualify prospects, and scope the work?
- You need qualified staff to deliver the work. Who’s going to do the work? Can you provide the service with your existing team? Where will you find subject matter experts (SMEs) in the new discipline?
- You need to work out project management for this new service. If you’re doing work you haven’t PM’d before, you likely won’t have a project plan or even a detailed list of the tasks involved. Who’ll ensure things get done on scope, on time, and on budget?
Lack of foresight and planning Go to the full article.
Source:: Business 2 Community