Doubt often clouds the minds of small business proprietors when it comes to the prospect of scaling their enterprises. The looming specter of investment casts a shadow of concern, one that could potentially lead to the unraveling of the entire company. While this apprehension isn’t unfounded and holds true in certain contexts, a spectrum of viable remedies exists, offering low-risk avenues that align with the needs of a majority of businesses.

Small and medium-sized enterprises (SMEs) are the resilient pillars bolstering numerous economies. These entities compose a staggering 99% of all businesses within the European Union and a resounding 99.9% within the United States. Nonetheless, a substantial fraction of them grapple with productivity hurdles, confronting challenges in their quest to expand their horizons. This struggle is particularly pronounced among early-stage companies, often constrained by financial limitations.

To provide a comprehensive snapshot, the spectrum of SMEs can be classified into six distinct categories, as illuminated by a study conducted by McKinsey & Company:

1. Innovative early-stage start-ups
   1. Early business plans
   2. Proof-of-concept stage
2. Established & successful start-ups
   1. Established minimally viable product (MVP)
   2. Uses marketing, sales, and other processes
3. Growing medium-sized companies
   1. Annual revenue of at least $10 mil.
   2. A solid business model with medium growth
4. Stagnant/struggling medium-sized companies
   1. Have grown to a point that they stagnate
   2. Struggle to stay profitable
5. Locally focused small businesses
   1. Less than 10 employees, less than $1 mil. annual revenue
   2. Growth heavily linked to demand
6. Informal microbusinesses
   1. Mostly freelancers & home-based businesses
   2. Often need credit to grow business

Within the confines of this blog post, our attention will be captivated by the second category. However, it’s worth acknowledging that a contingent of home-based businesses might find these insights beneficial as well. The solitary stipulation is that the proprietors preside over a digital enterprise.

1. Productize your services

In the realm of enterprises peddling digital services or products, a distinct upper hand is enjoyed over those engaged in vending tangible commodities. The pathway to amplifying output unfurls with relative ease, minus the necessity of colossal investments; after all, there’s no tangible production involved.

However, within this dynamic, certain companies have inadvertently fashioned their services into products, often without conscious intention. Take the book publishing sector, for instance. It has birthed a myriad of individuals who’ve transcended their roles within publishing houses and set forth on their own entrepreneurial quests. Within this expansive landscape, three archetypes prominently emerge:

1. Book designers: Their expertise is woven into the fabric of cover art, interior designs, and occasionally, the intricate tapestry of typography. A select few among them might even unfurl their skills into crafting social media graphics and orchestrating evocative book trailers.
2. Editors: Their skilled hands choreograph the dance of your book’s prose, ensuring an unbroken and harmonious flow that weaves an irresistible spell around the reader. With finesse, they orchestrate the art of hooking readers into the narrative’s embrace, and diligently labor to purge every crevice of your creation from errors, rendering it a polished gem.
3. Marketers: Their endeavors revolve around the strategic pursuit of placing your book into the eager hands of those who harbor a genuine interest in its offerings.

Collectively, these artisans often possess a keen understanding of the valuation of their services, thus facilitating the seamless bundling of their expertise into a cohesive, one-time fee. Notably, marketers might even fashion a model of monthly reoccurrence, recognizing that the voyage of marketing a book unfolds across a substantial span. And while on the topic of reoccurring services, the next stride leads us to an intricate examination of this aspect.

2. Switch to a recurring service model

Small and medium-sized enterprises occasionally find themselves at a crossroads where progress appears to be impeded, seemingly incapable of advancing further. Often, the trajectory of growth finds itself intricately intertwined with the rhythm of cash flow, a factor that can wield substantial influence. The art of forecasting gains a degree of complexity when the offerings revolve around straightforward, one-time services. In this landscape, the financial tides can alternate dramatically, with one month ushering in robust revenue, while the next is less forthcoming.

A pathway to introducing an element of predictability to the future lies in the transition to a recurring service model, or at the very least, integrating it alongside one-time services. As deftly highlighted in a blog post penned by SPP.co, the fusion of a recurring service model with contemporary payment solutions extends a dual advantage:

1. They improve the customer journey, and
2. They reduce manual workload for businesses.

Next, our focus now shifts towards the realm of recurring service success stories. Within this domain, several service types emerge as stars, thriving within the framework of recurrence. Here are a handful of notions that have already been harnessed by pioneering digital enterprises:

• Within this tapestry of innovation, designers unfurl the canvas of possibility by extending monthly, quarterly, or annual recurring design packages, tailored to the needs of small enterprises with an unending thirst for graphics. These visual assets are readily absorbed into the ecosystem of social media campaigns, blog posts, or the realm of infographics.
• Stepping into the realm of wordsmiths, content writers adeptly bundle their one-time writing services into harmonious bundles. A unique twist emerges as clients find themselves empowered to embrace a recurring service, unlocking the potential to requisition a designated number of blog posts on a monthly basis.
• Meanwhile, social media aficionados emerge as virtuosos of engagement, often piloting the complete social media presence of their clientele for a monthly fee. Each successive month unfurls a package that encompasses a limited number of profiles, meticulously managed to yield optimal results.

Among the constellation of recurring service purveyors, Design Pickle shines with a particular luminescence. Renowned for their innovative approach, they offer what’s known as “unlimited” choices within the framework of a steadfast monthly or annual fee. This business model is undeniably intriguing, though its calculus necessitates a meticulous assessment. Each service proffered demands a well-defined scope and judicious limitations, tailored to circumvent any potential financial quandaries. For instance, certain providers opt to tackle a solitary graphic project at any given juncture, a measure that aligns with prudent fiscal stewardship.

3. Analyze your current prices

For numerous small business proprietors, the prospect of hiking prices triggers a surge of trepidation. However, the path toward embracing novel processes, tools, and enhancements to enhance the quality of life does not come devoid of expenses. Over time, these investments must find their way back into the balance sheets.

While the decision to raise prices is undeniably complex, business owners have the latitude to maintain existing prices for longstanding patrons. While this approach shields these customers under a protective umbrella of unchanged fees, new patrons embark on their journey under the aegis of a revamped pricing architecture.

Another intricate juncture revolves around the conundrum of feature and product expansion: should all clientele gain access? Eventually, a threshold arrives where the vestiges of grandfathered plans must make way for newer pricing paradigms, even as steadfast patrons are gracefully ushered into these new arrangements. Although augmenting prices can often court discontent, the crux resides within the value proposition you extend. To navigate these nuances, a series of communicative strategies can be employed, including:

• Extend to your customers a window into their journey, showcasing the miles they’ve traversed on an erstwhile recurring service plan for a duration of X. Highlight the tangible value they’ve amassed – the substantial X amount of money saved, a testament to their wise investment.
• In this juncture, seize the opportunity to remind them of the vibrant array of novel features and offerings you’ve artfully crafted in the interim. These enhancements stand as a beacon, beckoning them toward an enriched experience.
• Acknowledge the fidelity they’ve steadfastly upheld over time. Evoke their sense of belonging by weaving an aura of exclusivity around their loyalty. Consider enlisting them as luminaries within a case study, a move that not only elevates their role but also underscores their integral part in the narrative of your growth.

Absolutely, it’s pivotal to bear in mind that for a small business, the paramount goal resides in mitigating churn – retaining customers within the fold for the longest span feasible. While a fresh pricing framework might hold promise, its potential benefits remain unrealized if it inadvertently ushers in a tide of canceled plans, eroding the bedrock of recurring revenue.

4. Reduce churn with behaviour-based onboarding

Nurturing contentment within a client has the transformative potential to forge an enduring bond, potentially culminating in lifelong patronage. While this sentiment is eloquently spoken, the implementation thereof is an intricate endeavor. Nonetheless, any business worth its salt should allocate resources towards cultivating processes that lay the groundwork for a steadfast, long-term partnership.

The formidable challenge surfaces post a free trial enlistment, where the voyage of leads often takes on this trajectory:

• The journey ignites with the lead touching down on a landing page finely tuned to the cadence of marketing efforts.
• Propelled by a fusion of persuasive content and compelling marketing emails, the lead embarks on the decision to subscribe for a trial.
• This trial interval serves as a voyage of discovery, where the lead is shepherded towards an illuminating “aha” moment. This pivotal juncture triggers a profound realization, a catalyst that metamorphoses the lead into a bona fide customer.

During the trial period, moments of friction frequently emerge, hindering the seamless progression towards that transformative “aha” revelation. More often than not, this pivotal moment remains tantalizingly elusive. Several underlying factors contribute to this scenario, including:

• The brevity of the trial period itself often presents a stumbling block, leaving inadequate room for a comprehensive exploration that could lead to that pivotal realization.
• Furthermore, the journey to test a service or product often entails a convoluted web of tasks, demanding leads to navigate through an excessive array of setups and configurations, thus adding layers of complexity that could impede their path towards the coveted “aha” moment.

To address this challenge, a viable strategy is to orchestrate an onboarding journey that seamlessly blends elements of self-guidance with personalized human assistance. Consider a scenario where the lead finds themselves within a client portal upon logging in. In this digital haven, a plethora of resources should unfurl before them: links to an extensive help center, enlightening tutorial videos, and streamlined avenues for connecting with the business, whether it’s through chat support or email communication.

Automation comes forth as a powerful ally, enabling the orchestration of email campaigns that pivot based on user actions. This dynamic process allows the system to discern when a lead completes a specific step within the journey but stalls at progressing to the subsequent one. At this crucial juncture, a gentle nudge, delivered via a well-timed email, can potentially steer them back onto the trajectory toward the desired destination.

The realization of this vision finds its foundation through the fusion of analytical prowess and potent marketing capabilities, epitomized by platforms like Heap and Marketo. Through this amalgamation, users are elegantly segmented into cohorts defined by their behavioral traits. This stratified approach furnishes businesses with the capability to judiciously trigger emails precisely at those critical junctures when a user has either undertaken a specific action or, conversely, when the desired progress remains elusive. The synchronization of these platforms culminates in a dynamic orchestration of engagement, ensuring that the right message reaches the right user at the opportune moment.

Final Thoughts

In the dynamic landscape of today, the arsenal of tools available to small and medium-sized business owners has expanded exponentially, equipping them with the means to navigate the terrain of scaling and growth with finesse. With new contenders emerging in virtually every conceivable niche, the imperative to maintain an edge has never been more pronounced.

Yet, amid this diversely unfolding narrative, the unique tapestry of each company demands thoughtful consideration of its individual trajectory. Within this crucible, the onus rests on the business to meticulously evaluate its array of options and decipher which among the quartet of tips can be seamlessly assimilated into its operational fabric.