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6 Reasons New Service Businesses Fail (What You Should Focus On)

October 08, 20229 min read

In this video, we will be talking about the most crucial things most Business Owners overlook.

These things might be the reason why your business is not taking off. So today, I will go over each of the factors that are preventing your business from growing.

Want to read the transcript instead?

Hey guys, Welcome back to my channel, the number one place for service waters entrepreneurs and side hustlers. If you wanna start a business or you've just started one, then this is the channel for you. Make sure you smash that subscribe button and hit the bell to be notified for every single time I post a new video. In this month, we're coming out with 30 videos in 30 days, so you have so much goodness to come. So make sure you hit the bell to be notified. In this video, I wanted to dive into some of the reasons why most businesses fail and don't take off the ground. So if you are struggling to get clients and really see that push from starting a new business, or maybe you're curious about getting into a business and you need to know where to start, then this is the video for you.

All right, guys, I've broken it down into six key components for you. When it comes to the business foundations, a lot of people think of business foundations as only the legal stuff, which may be getting a business license, opening up a bank account, getting a e, maybe a business name, and a website. Those are typically what people see as the business foundations, but it's not just that, which is why so many people fail because they overlook these things that are crucial for your business and success. All right, so we've broken 'em into six steps. Let's dive in. Number one is getting clear on your offer. So many people skip this step. They think that their offer is clear, and it's typically not. I would definitely encourage you to revisit your own website, your sales script, and anywhere else where your offer is typically posted. Maybe it's on advertisement that you have somewhere at landing pages.

Check it out. Make sure that your offer is specific. When I'm talking about specific talk about, you know, um, whether what is included, what is not included. If you are a referral agency, then what referral services do you offer? What do you not offer? If you are a landscaping company, what type of packages do you offer? Do you offer reoccurring maintenance with, um, trimming and design work to some of the plants? Are you, do you install sprinklers? Be clear on your offer. Make it to where you have multiple different packages and be known for something. If you could be known for something, having a, instead of just calling it a deep cleaning package or a landscape design work, have a cool name for it. Make it stand out. Then you'll be known for that in your industry, which is awesome. And it helps people really know, Oh, I know that company, right? It's creating a more brand awareness and really helping your customers convince themselves into buying your stuff, right? Because it's different, it's clear and they can understand it and easily be on the same expectation as far as what's included. The second one is having your audience defined. Imagine somebody coming to your website and only staying there for 30 seconds. Well, that initial headline, that tagline that they first see, if that doesn't

Resonate with them, they might bounce off your website. Not only that, but it has to be called to your call to action and all that other stuff has to go with it too. But for this one, stay with me for a second. And we're just talking about the messaging for your audience, right? So imagine scrolling down a little bit on your website, and maybe it's for them, maybe it's for not. You get where I'm going. So, dialing in on your audience and having one person in mind, having one ideal client, one ideal customer. Maybe it's busy working moms, maybe it's not. You don't wanna go and copy somebody's messaging from another website. Maybe they focus on pet cleaning or pet hair or eco-friendly. You want to figure out what your ideal customer is. Who do you dream to work with? Figure out who it is.

Do some research and back it up. Even if you're a new business, you could still find the stuff out with doing some research, but if you don't do this step, you're gonna have a lot of people bouncing off your website and they're not gonna be converting on from your content. So it's crucial to make sure that you dial in on your audience and to find out who your ideal client is. The third one is pricing. It's important to understand how to price and not just copy. Some deals is pricing and just going into it, it's really important to make sure that you know the tax rates, the workers comp, how much taxes you would have to pay, how much profit you want, anticipate supplies and equipment, and you're factoring all this into your pricing. If you don't factor these into it, then you're gonna struggle to be profitable.

You want to make sure that you have your pricing dialed in, and there's so many different types of pricing, um, especially for different industries and so many things. Um, but it's really important to make sure that you know this. If you know this, it's, you're gonna be able to scale your business without seeing a setback. You're gonna make sure that your workers, whether you work with employees or contractors, are gonna be happy. If they're not happy, then you're gonna have issues. You're gonna have to readdress your pricing and it's gonna cost more headache down the road. Going into your business, it's important to make sure that you, you know, are profitable, that you have your overhead covered, that your workers are gonna be happy again, whether it's employees or contractors, making sure that everything that they need is gonna be covered into it. And I'm not talking about possibly the lowest minimum wage, right? So you want to price higher because then what happens if next year you have to pay more? You wanna make sure that it's still covered. So your customers aren't always having to go increased on prices just because minimum wage is going up. You want to make sure that you at least have it up higher and you have room to

Fluctuate with still being, um, profitable, especially if you are having team leaders and they have different rates just depending on their performance as well too, which is a good motivator for your workers. Again, having all of this dialed in before you start having your pricing is so important to being profitable. The fourth one is having customers expectations set. So this one typically is definitely overlooked. So if you just started, maybe you got a customer and you, or maybe you've had a few customers, but you're constantly having issues, I would definitely revisit the customer expectations. If your customer's expectations are too broad, not specific enough or not being addressed during multiple points in their sales cycle, then you're gonna be having issues, right? And if you're having issues, you're gonna have issues retaining them, you're gonna have issues trying to get them to have reoccurring services.

You're probably gonna end up getting a bad review and not really getting the type of momentum that you want for your new business. So it's really, really important to make sure that your customer's expectations are set at all stages in their cycle. That means from the website to the call, to the emails, and much more. The fifth one is lack of customer service knowledge. So this one typically stems from people starting a business from something they don't really have a background in and they're trying to learn, or maybe just start a business just because they're in this entrepreneurial hype and they really eventually realize that they don't really know too much about it. Maybe you started a cleaning company, um, and you didn't really know anything about cleaning. Or maybe you knew some, but you just don't know at all or something different, right?

So maybe you, um, are a landscape or carpet cleaning or photographer and you don't really know how to deal with the customers. This is definitely something that you need to learn in the beginning stages, otherwise it's gonna be a lot harder for you to really learn how to talk with customers, how to help them in situations that are a little bit hard to talk about, such as complaints, and kind of having this figured out beforehand is really gonna help you be ready to tackle those when they come and create a smoother customer journey. And as I said, I would say the best for last. The last one is for getting to develop a routine. It's so important to make sure that you are developing a routine as a new business owner or someone who's made less than 40 K in their business journey, it's really important to revisit setting a routine. Having an established routine is gonna help you as an entrepreneur be able to scale your business properly, especially if you work another job, or whether it's

A full-time job or a part-time job, or maybe you're all in on your business, having a defined routine, even with the new crazy stuff that Covid has thrown our way. If you are homeschooling or you have kids that do online school like me, I have three kids and it makes it really hard. So having a routine to work and have set work hours for yourself and for me really helps me be successful in my businesses. So I want you to take all of these tips into consideration and make sure that you revisit your business foundations and make sure that you have all of these dialed in. I promise you, it's gonna help you scale your business as long as you dial it in on the right way. If you need more help on how to dial these in, I do offer one-on-one coaching. If you want to check that out, make sure you check the link in the description box. If you like this video, please hit the like button, share it with your friends, and comment down below on what you're struggling with next. We are coming out with 30 videos and 30 days guys, so make sure that you hit that bell and beat notify for all the upcoming videos coming out to help you thrive in your business. I'll see you in the next one, guys.

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Krystal Bella

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