FCB #013: How to Productize Professional Services

In today's rapidly evolving business landscape, small professional services businesses face unique challenges in scaling their operations and maximizing their revenue potential.

One effective strategy to overcome these hurdles is by productizing a professional service.

By transforming their expertise into a tangible and scalable offering, small business owners can unlock new growth opportunities and differentiate themselves in the market.

In this article, we will explore (1) why productization is crucial for small professional services businesses, (2) outline the essential steps involved, and (3) provide a quick example with a marketing consultancy firm to illustrate its benefits.

Why Productization Matters for Small Professional Services Businesses

Scalability

Professional services often rely on the time and expertise of the business owner or team members, limiting their ability to serve a larger client base.

Productization enables the creation of standardized offerings that can be delivered to multiple clients simultaneously, increasing scalability.

Efficiency

By converting a service into a product, small businesses can streamline their operations, automate certain processes, and reduce the need for custom solutions.

This allows entrepreneurs to focus on value creation, while repetitive tasks are systematized.

Revenue Potential

Productization allows small businesses to tap into new revenue streams.

By packaging their expertise into products, they can generate income from sales, subscriptions, or licensing, in addition to their traditional service fees.

This diversification enhances financial stability and growth potential.

Steps to Productize a Professional Service

Step 1 - Identify Your Core Expertise

Determine the specific service or skill set that differentiates your business.

Focus on your unique strengths and assess how they can be translated into a product.

Step 2 - Define Your Target Market

Identify the ideal customer segment for your productized service.

Understand their pain points, needs, and preferences to tailor your offering effectively.

Step 3 - Package and Standardize

Transform your service into a structured, well-defined product.

Consider creating different tiers or options to cater to various customer budgets and requirements.

Step 4 - Develop Supporting Materials

Produce comprehensive documentation, guides, or tutorials that accompany your productized service.

These resources will help customers understand how to leverage your offering and enhance their experience.

Step 5 - Price Your Product

Determine a pricing strategy that reflects the value you provide while remaining competitive in the market.

Consider factors like production costs, market demand, and customer perception.

Step 6 - Implement Sales and Marketing Strategies

Promote your productized service through various channels, such as social media, email marketing, webinars, or partnerships.

Leverage your existing network and engage potential customers with compelling messaging.

Quick Example: Productizing a Marketing Consultancy Service

Let's consider a marketing consultancy firm that specializes in helping small businesses improve their digital presence.

To productize their service, they could follow these steps:

1. Identify Core Expertise: The firm specializes in search engine optimization (SEO) strategies, content marketing, and social media management.
2. Define Target Market: Their ideal customers are small businesses in the e-commerce sector seeking to enhance their online visibility and drive more traffic to their websites.
3. Package and Standardize: They could create three packages: Basic, Advanced, and Premium, each offering a different level of SEO optimization, content creation, and social media management. Alternatively, they could create three packages: Do It Yourself (DIY), Done With You (DWY), and Done For You (DFY), each offering a different level of client and consultancy involvement.
4. Develop Supporting Materials: The firm develops a comprehensive SEO guide, content marketing templates, and a social media playbook to assist their clients in implementing their recommendations effectively.
5. Price Your Product: The packages are priced based on the pre-defined scope of services provided and the expected outcomes. The firm also offers add-on services for clients who require more specialized assistance.
6. Implement Sales and Marketing Strategies: The firm leverages LinkedIn and other digital marketing channels to showcase their expertise, engage with potential clients, and offer value through informative content and case studies.

By productizing their marketing consultancy service, this small business can increase their reach and impact.

They can attract a wider range of clients, including those who may not have been able to afford their traditional consulting fees.

Additionally, by offering standardized packages, they can efficiently deliver their expertise to multiple clients simultaneously, allowing them to scale their operations without sacrificing quality.

Through productization, the marketing consultancy firm can also benefit from recurring revenue streams.

They can offer monthly subscriptions for ongoing SEO monitoring and content creation, ensuring a steady income while providing continuous value to their clients.

Moreover, they can explore licensing opportunities by packaging their methodologies and tools into training programs or software solutions, further expanding their revenue potential.

Conclusion

In conclusion, productizing a professional service holds immense value for small professional services businesses.

By following the essential steps outlined above and leveraging the example of a marketing consultancy, entrepreneurs can unlock new growth opportunities, enhance scalability, streamline operations, and diversify their revenue streams.

Embracing productization allows businesses to transition from being solely reliant on their time and expertise to creating tangible and scalable offerings that can drive sustainable success in today's competitive marketplace.

So, if you're a small professional services business looking to break through growth barriers and maximize your impact, consider the transformative power of productization.

By harnessing your expertise, defining your target market, standardizing your offerings, and implementing effective sales and marketing strategies, you can position your business for long-term success and unlock new heights of profitability.

Whenever you’re ready, there are 3 ways I can help you:

1. Founder Coaching Program - If you’re looking for individual coaching, I’d recommend my 1:1 Founder Coaching Program: ten 60- to 90-minute Zoom meetings to be used within 6 months of starting with me. We'll teach you how to systemize, hire A Players, and delegate so you don't have to keep doing everything yourself!

2. Strategic Planning Facilitation - If you’re looking for group coaching, I’d suggest you first bring me in to facilitate a 2-plus-day Strategic Planning Retreat, with post-retreat help for you and your Leadership Team on implementing our proven Founder Operating System (FOS) into your business.

3. Weekly Founder Coffee Break Newsletter - If you or your people want to learn how to build and leverage systems and teams to run them, consider subscribing to my weekly LinkedIn newsletter. I share practical guidance to help you systemize, improve, and grow your business.