How to Structure a Service Business | Business Town

How to Structure a Service Business

 How to Structure a Service Business Learn how to build a profitable service business using the "good-better-best" concept.

 

How to Structure Your Service

Before we move on to how to actually build that audience to bring in your service, it’s important to take a few moments to talk about how you’re going to structure your service. In this part of the video will be discussing the basic structure of how a service company can be laid out, and in essence how to prototype that service.

Layers of Success

This model goes by many different names. Some people refer to as the good better best model, other people refer to it as the base premium deluxe model but the concept is still the same. What you want to do with the service-based business is design your base level structure, your good level if you will. With every additional layer that you add on to your base level, your good layer, you’ll be increasing the value that you perform for your customer.

Raising Your Price Points

Correlating to this, you’ll also be raising your price point with each additional layer that you put on and thus you’ll also increase your profit. The key to this model is to use the structure already in place at each corresponding level to also increase your margin. So with the addition of increasing your price, you’re also increasing your profit because you’re utilizing the systems and workflow that’s already in place on each corresponding level as you build up premium and deluxe offerings for customers who are willing to pay for it.

About Frank Pobutkiewicz

Frank Pobutkiewicz is the owner and Managing Director of the All-American Model United Nations Programs and Whiteboard Youth Ventures, two education companies that work with high school students from around the world. Over the past six years, Frank has launched or advised the launch of multiple companies, including an international not-for-profit, a consumer electronics company, his two education ventures, and a men’s fashion company, among others.

In 2017, Frank will be publishing a book and multiple games and exercises to help teach entrepreneurship to high school students. His specific views on entrepreneurial education combine skill building, project management, marketplace validation, and rapid prototyping. In addition to teaching and advising, Frank is currently launching three direct-to-consumer product companies and documenting his progress on Medium.

 

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QUIZ: WHAT BUSINESS IS BEST FOR YOU?

QUIZ: WHAT BUSINESS IS BEST FOR YOU?