96: Is Your Service Offering Serving You… and Your Bottom Line?
Have you evaluated your service offerings lately? And do you know if they are helping you reach your financial goals? Today we are talking about how to evaluate your current offers. I’m going to help you determine if your service offerings are serving you… and if they are serving your bottom line. You are invited to our upcoming Masterclass! We will be spending two 2-hour training sessions coming together in an actionable way to help and develop you and your career path. We will examine how you can get clear on where your gifts lie, what level of service you should be providing your clients, and how to offer services that optimize your skills and goals. Join us on May 18th & 19th. Evaluating Your Services Do your service offerings make sense for your bottom line? In episode 95 we talked about setting financial goals and we looked at those through the good/better/best (GBB) goals framework. The key numbers that you need to know every single month are revenue, profit, profit margin, and the income that you pay yourself. Pick one of those to set your GBB goals off of. Make a List Make a list of every single thing that you sold this past year. For example, if you did a strategy session a couple of times last year, that would be one offer. Additionally, if you did some ongoing retainer work, that would count as another offer. You may need to look over your financials so that you can remember everything. Quantity How many of those offerings did you sell? Attach a number sold to each service (you may want to think of this as an excel spreadsheet). Cost of Services Sold This is how much it cost you to provide this service. An example would be if you were doing a retainer contract for someone and you needed some additional support to help you deliver on the scope of work that you agreed to. If you hired a VA to help, whatever you were paying them to help you would be the cost of services sold. This may also include systems and technology costs. Pull the cost of services sold out of the product's pricing. Actual Revenue Ultimately, you want to see if the revenue helps you hit your GBB goals. Ask yourself, “is this a profitable and aligned service?” You may want to reconsider your pricing, or if you offer this service at all if it doesn’t make sense. Look at the real revenue, which is the price of the product times the quantity minus the cost of services sold. “Sometimes we can get in big trouble over the cost of services sold.” Time and Effort In addition to the profit and revenue, look at and assess your time and effort. This may be more difficult to quantify. Also consider if you are using your innate or natural skills. “Deep down you know if your efforts are worthy or wasted.” Skill Set This is how closely aligned the offer that you are putting out is with what your zone of genus is. Use a scale of 1-5 (with 5 being the least, 1 the most) and measure: The amount of time you put in The amount of effort The thing that comes most naturally to you You want the number average to be really high, so if it isn’t, you may need to reassess. When you get revenue that is profitable, you will also get a higher number when you average time, effort, and skillset, and there you will find magic in offering something that comes really natural to you. “The more natural it comes to you, the more profitable it will be and the least resistance you will have to show up and sell the product.“ Consider removing the offers that aren't aligned and helping you to get to your GBNB goal, or if they aren’t aligned to your skillset. Go deeper into the ones that are more profitable and more aligned. If you want to create the most profitable offer for yourself right now, consider a one-to one service offering! The service professional space is an amazing way to establish a healthy and profitable business with very little marketing and close to zero startup investment. Don’t forget to sign up for our upcoming Masterclass which will help you get clear on how you can build your dream career while leveraging the skills that come natural to you! Weekly Ops Activity Come on over to our Facebook group, and tell us your most profitable offer. Previous Episodes Mentioned Episode 95: How to Set Financial Goals as a Service Provider Other Ways to Connect with Me: Website Private Facebook Community Facebook Page Instagram This episode was first published at theopsauthority.com/podcast/96.