Where do CEOs of small service companies struggle most when trying to create a “scalable” service business that can grow to be a large company?
They underestimate the amount of refinement and development of their service offerings, marketing execution, internal processes and company culture. By a factor of 10. At least.
I have worked with dozens of successful CEOs of project-based service businesses on their new scalable business enterprises. All but one of these leaders drastically underestimated what it takes to create a growing business that doesn’t rely on the principal’s involvement to attract and serve new customers.
- What it takes to make a great customer experience happen every time — without the founder in the room
- What it takes to have their story sell in Peoria without a face to face meeting with the owner
- What it takes to build a brand that people know about and trust
- What it takes to grow steadily and predictably
Think about the services we buy from national brands — like coffee from Starbucks, car service from Sears, our gym membership, online travel booking, buying books from Amazon. All of these used to be local services, but now they are large services businesses that (on the whole) work way better than our local providers.
When McDonald’s was getting started, there is no question that the founder, Ray Kroc, put at least 10x more effort into product definition, marketing execution, internal processes and company culture than the local hamburger shop. Truth is, Ray Kroc put at least 100x more energy into the things that would scale his business to change the world. He was a fanatic. And he created one of the world’s largest companies.
Amazon puts at least 100 times more energy into their customer experience and marketing than your local bookstore does. Think Geek Squad compared to your great local computer handyman. It’s a completely different game when the owner isn’t the frontline salesperson to their customers and is no longer the chief service provider.
Is it a simple incremental step for an expert consultant to write a book, build a national brand and create a growing training business? Nope. It takes 100 times more refinement and energy to build all that — compared to the effort of their next client engagement.
CEOs creating scalable service business need to think more like they are creating a consumer product business than running their old project-based custom service business. Like creating a software product or a national retail chain or a writing a book.
Make great pies on holidays that your family raves about? Building a national pie business brand takes a lot more effort and energy.
Is 10 times the effort enough? 15.5 times? 55 times? 100 times? There is no minimum number. Sorry.
You simply need to be an unstoppable fanatic about your customer experience, your processes, your company culture, your sales pitch. Steve Jobs? Fanatic. Debbi Fields of Mrs. Fields Cookies? Fanatic. Amazon website designers? Fanatics.
If you aren’t making people crazy about attention to detail and fanatical refinement of the things that scale your business, you probably aren’t doing enough to achieve the success you dream about.
Are you the chief fanatic?
