Bill Erickson shares a few thoughts about the benefits of running a consulting / service-based business. His post is in response to the notion that product-based business models are more scalable and therefore profitable.

Bill covers the pros and cons of the consulting business model, and what people frequently forget when thinking about product-based business models. One thing resonated with me:

As a service provider, find the more scalable aspects of your business and focus on them. Likewise, find the aspects that are less scalable and decrease your focus on them.

This is something that I’ve been working on at ClickWP. In service-based business models, decreasing focus on the less scalable aspects are usually handled by automation. However it’s important to remember not to automate too much because your business will become cold and your relationship becomes transactional, when customers frequently choose you over other vendors because of that high-touch relationship.



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