Product based businesses are generally more valuable to buyers than service based businesses.
That’s just one of many reasons why I’ve been taking interest in productization.
Productize by Eisha Tierney Armstrong is a masterclass on this topic.
One often overlooked consideration when productizing is managing resistance.
Resistance from your internal team.
Perhaps your team had a vested interest in delivering a flexible service as opposed to a standardized package.
Maybe they preferred the variety of work associated with a service as opposed to the benefits of scale that productizing brings.
If you are going to productize, it’s important to get your team onboard with the benefits.
Find out if they are “in” or “out”.
Running a business is challenging. You want to make sure you have the right people on the bus for the winding road ahead.
Here were my key takeaways:
1. Understanding Productization
It’s about transforming your service-based business into a product-oriented one.
Allows for scalability, efficiency, and consistency, setting a solid foundation for long-term growth.
2. Why Productize?
- Grow Faster: With products, you can serve more customers without more work.
- Save Time: Clear steps and packages cut down on chaos and costs.
- Stay Consistent: Everyone gets the same great service every time.
3. Steps to Productize
- Identify Core Services: Focus on your most valuable services.
- Develop a Clear Value Proposition: Explain the unique benefits.
- Create Standardized Packages: Build clear, easy-to-buy service bundles.
- Systematize Delivery: Use systems for consistent service delivery.
- Set Prices:Price your products to reflect their value and attract clients.
4. Overcoming Challenges
- Client Customization: Offer flexible options or add-ons.
- Internal Resistance: Involve your team and show long-term benefits.
- Market Perception: Educate your market on the benefits of productized services and how they can deliver superior value.
Talk soon,
Lloyd
PS – Need some guidance on how to turn your service into a repeatable, scalable, sellable product? Let’s chat.