Does Your Small Business Add Value?

It’s a new year. Which means it’s time to reregister my business.

And just my luck! Two businesses offered to complete my business registration for me.

But it wasn’t really an offer. More like a heavy dose of fear steeped in compliance. I would be in big trouble if I missed this!

Thank goodness they offered to take care of this for me. And all for the modest premium of $400. They’ll even throw in some labor law posters as a bonus. I don’t want to miss those, either.

But wait a minute… The Secretary of State already sends an annual reminder email to renew my business license. It’s only $50 to register directly on their website.

It seems like coercion. Except for little clauses folded in that label the company as “not a government agency.”

Is your small business upcharging for a bolt-on service that adds little value? This is a hard income stream to rely on to stay in business. And you probably slipped into it by accident.

Maybe it’s time to take another look at your business model.

Copycats Getting Reactions

The copy hints at a done-for-you service to re-register your business. But the government offers the same convenience at much lower prices.

The strong compliance language tricks the customer into purchasing using a snap reaction from generating fear. Even if they’re only copying what the government already does.

This model may have worked in a time when snail mail was king. A small business owner wearing many hats doesn’t have the time. Necessary things get done and alternatives aren’t researched. In those cases, it may be easier to send a check and keep out of trouble.

Plenty of us are in a cash crunch right now. Scarce resources make consumers smarter. Smarter consumers read the fine print. That makes more work for your product to bring in repeat sales.

If you’re going to offer something someone needs, guilt or fear only leads to a quick decision they will regret.

That revenue won’t come back next year. And you want to be in business next year, right?

…Right?

Real Relationships that Add Value

The internet is full of tactics that are bad, outdated, or easy to copy. Chasing them keeps small businesses from creating recurring revenue streams.

Yes, I beat up the example companies for scaring potential customers into their “value add”. For an 8x premium, they only added internal labor and a labor law poster.

In this case, the Secretary of State’s office made the process easy enough. They’ve built in automatic reminders, an easy-to-use-website, and a reasonable price. That’s hard to overcome when your competitor is nationally recognized for excellence. (shameless plug)

It looks like the low-hanging fruit is gone from that orchard. So what things are just a little harder to deliver?

People always have unmet needs. Satisfying them on their own is fraught with frustration and wasted time.

If your small business solves their problem, they are free to take care of their other needs. And what is life’s purpose if you don’t meet the needs of others?

Find something that’s not done well. It’s so bad it’s painful for your customer base. Then figure out how to solve it better than anyone else.

Why?

Your customers are losing time or money somewhere. Fixing it is what differentiates businesses that grow from the 90-plus percent who fail in the first three years.

It’s Go Time

Remember: we are in a period of constant, exponential change. 

What doesn’t change (easily) are your customers’ values. As strong as fear and guilt are, they won’t sustain your business long-term.

You may have done it this way for so long that you can’t see any other way. But long-standing tactics now only last months before a bigger competitor outdoes you.

Don’t worry! Competition can be a good thing. Even the most formidable competitor is missing something.

Those are unmet needs upstarts can exploit to bring value to their customer base. So long as the extra services add value to justify the higher price, you’re doing your job. And your most loyal customers will be happy.

Now find some actual value your customers need within what you can already do. You’ll justify 8x premiums before you know it. And you won’t even have to scare people.

Do you need a guide to unlock the hidden value of your small business? Set up a call with me. I’m excited to learn how I can help you!