Last week, we discussed service-based business. In the blog entitled “Service Vs. Product”, we discussed the benefit of starting a product-based business over the serviced-based variety. The blog explained the product-based choice gives us more time and the opportunity to work once and make income perpetually. Freedom is the ultimate goal of creating a business of our own, but some of us find out we’ve created a new job that we happen to own. We are busier than we were working for someone else’s company. This scenario is what we want to avoid. What if we’ve already started a service-based business? How do we make the most of it? How can we transition to a product or at least create a mixture?

First, we should think about the restriction we are trying to undo. We want to free up our time. In a service-based business, creating free time is difficult. We will touch on multiple business types to help as many readers as possible. First, a cake company. Some may state to themselves, “That is a product business.” The cake is the product. Baking it, is a service. This duality is a problem because the service takes time. The owner is stuck with completing the service before selling the product. Baking a cake, designing it, and at times delivering it. The way to attempt to get out of the service part of this business would be by hiring staff. The tricky part is funding may not be ample enough to do so. As the owner, we will need to complete some number crunching to see what type of help we can afford. Even if it is two part-time employees, you may be able to free up 20-30 hours a week of your time with training taken into consideration.

Say we are barbers. It is a 100% service business. How can we free up some time? We can do one of two things. We can raise our prices. The risk here is losing some customers, which can result in this move breaking even or worse. As the owner, you’ll need to find the sweet spot of adding enough to save you an hour a day. One less customer a day can buy you 30 minutes to an hour per day.5 to 6 hours a week can give you time with loved ones or the time to come up with choice number two. The second choice will be to create a product. What can you do once and continue to make money? This question is what we need to ask ourselves. The answer will vary. The method to getting there is what we just did together.

In closing, if you’ve started or still plan to start a service-based business, be prepared. It will feel like more of a “job” than give you the CEO vibe. This position can be what it is forever or only the beginning. Plan your escape before you jump in. Knowing you have a plan will make the hard days easier to take. The days of providing the service alone will be long and stressful. At times, knowledge of the plan for relief will be the only thing you have to cling. It will be your safe haven. As soon as we complete the plan, we should work towards it. The knowledge of it will only be good for a while. It will lose a little of its effect each time you use it. Don’t let it happen. Get to work.

Food for thought. You do the dishes!