Three Important Cornerstones of Running a Successful Service-based Business
Being a freelancer in today's digital age offers amazing opportunities, yet it definitely comes with its own set of challenges. The online marketplace is absolutely crazy with competition, and standing out requires more than just a great product or service. It requires a comprehensive strategy that includes differentiation, a robust business model, and a systematic approach to client acquisition to thrive online.
Section 1: The Foundation: Your Service:
Your service is obviously the backbone of your freelance business. The goal is not just to provide this, but to offer a transformational outcome to your clients—something they absolutely need, not just something “nice to have”. As a freelancer, you will likely find that you aren’t the only business in your space offering the same service, so it becomes really important to differentiate yourself and make sure that the people who need you can find you!
You have three main tools at your disposal to accomplish this:
a. Your Brand/Brand Personality: Everyone is unique, so this is an excellent (and probably the most obvious) way to differentiate yourself and stand out in your market.Your brand is your style, your voice, and your ethos. It communicates your values and the unique benefits that only you can provide. Crafting a compelling brand personality and telling your unique story can differentiate you from your competition and create a deeper connection with your clients.
b. Your Process: Your process is how you work - from the initial engagement with a client to the final delivery. It's essential to showcase a professional system from A to Z that assures clients of your competence, reliability, and distinct approach to solving their problems.
c. Onboarding: Onboarding sets the tone for your client relationships. A smooth, organized, and professional onboarding process builds trust and sets the stage for a successful working relationship.It's also your opportunity to mitigate buyer's remorse and reassure your client that they've made the right decision!
d. Revisions and delivery. Finish strong! Don't underestimate the power of a well-executed project wrap-up. Many people peter out here, but this is the time to leave an incredible impression on your customers, and then you can feel good about asking for a referral or testimonial.
Section 2: The Structure: Your Business Model
Your business model delineates how you deliver your service and how you charge for it, but regardless of the model, it's crucial to ensure a process-driven approach to maintain the quality of your deliverable consistently.
1. How are you providing your services?
a. Fully productized and systematized, many elements are exactly the same and repeatable.
b. Completely bespoke*, where everything is tailored to the individual client.
c. A blend of systematized and bespoke offerings.
*But note that no matter which way you fulfill your obligation, you need some sort of process driven approach to ensure the quality of your deliverable remains constant, even if your model is heavily tailored to each individual client!
2. How are you charging your clients?
a. Hourly Billing: This model is straightforward - you're paid for the hours you work. However, it can undervalue freelancers who work efficiently due to their expertise and well-established processes.
b. Project-Based Pricing: With this model, you charge for a specific deliverable, one and done. If you struggle with boundaries, this is an excellent model to use because there are defined deliverables and a clear timeline.
c. Retainer/Subscription Model: This model offers recurring work and steady income, but if you struggle with setting boundaries, this can become problematic. Once you develop a relationship with your client, they may ask for more work out of scope and you may find it difficult to say no, or boost your monthly fee.
There are some non-traditional niches turning to this model, which offers a unique twist to their services, such as Photographers who have a subscription service for families who want to capture regularly occurring life events, or their children's milestones.
Client Acquisition
The final cornerstone of running a successful freelance business online is client acquisition. This involves a mix of lead generation, nurturing, and a well-defined sales process.
Section 3: The Fuel: Client/Customer Acquisition
Client acquisition is integral to the survival and growth of your freelance business. It's an ongoing process that requires a strategic approach.
a. Lead Generation: Don't sit back and wait for clients to find you. Instead, employ methods like maintaining a compelling website, growing your email list, using social media and content creation through channels such as YouTube videos or podcasts can help establish your authority in your field.
b. Lead Nurture Process: Remember, buying decisions take time. Stay top of mind and continue to demonstrate your value through consistent communication and content sharing.
c. Sales Process: Once you have connected with your ideal prospect, you’ll want to make sure they actually need (or want) your services! Not every lead will be a good fit, and that's okay. Your sales process should focus on qualifying leads and ensuring a mutual fit. This is where you will "weed people out." Not all clients are a good fit for you, nor are you always a good fit for the client!
If you’ve decided this is a match but they're questioning your pricing, you may have failed to build trust and authority, or prove your value to them, and this may require some extra work on your part. You will overcome any objections at this point, so your customer will feel confident that they've made the right decision!
d. Referral Process: A happy client can be your most persuasive marketer. If you've provided a stellar experience, asking for a referral or testimonial can help you win new clients. This process should be carefully planned and executed at the most appropriate time in your client's journey. Generally, youll get one new referral from every new client, ( if the client is happy with your work!) so this isn't to be overlooked—but is not for the faint of heart! If this does not feel comfortable or is not appropriate, ask for a testimonial. People put trust in other people, so if your client had an excellent experience, ask if they will talk about it.
