First off, let me just say: Always think of your capacity when you’re trying to come up with a marketing strategy. If you have a capacity issue, you may need to tweak our marketing.
I’ve just had an interesting conversation with a client and I thought it was quite apt for a piece of advice. We were talking about some great ideas about marketing, strategies, funnels, processes, automation, and all those things.
And then I asked, “So how many slots have you got left? What capacity have you got left?” And they answered three—they’ve got capacity for three more clients. I’m like, so why are we building a huge scale thing if you don’t have capacity? We should be looking at ways that you can make supplemental income or static income or things like that rather than trying to push services.
Their capacity really changed the way that we approached their marketing. It changed the types of products that they wanted to promote.
Watch the full video below:
Options for Businesses with a Capacity Issue
If you are in a service business, like a managed service provider or a tech startup, and you have a capacity issue, you can’t take on as many clients or users as you want, first think about the amount of capacity that you can take. And only then should you deal with your strategy.
Because if you can only take two to three clients, why throw your money away on ads and everything else, unless the ROI for those clients is huge and you’re taking on 100k to 200k then that’s fine. If that’s how much your clients cost, then it makes it worth putting that time and effort in. But if you’re at the lower end of the price bracket or the amount of money that you’d have to spend doesn’t justify the number of clients that you’re bringing in, change the way you look at it.
You have two options:
- Focus on increasing service capacity. Don’t worry about doing that now and focus on how you can increase service capacity. This may require taking someone on or training someone up and then you can scale.
- Look at things that are static. Maybe you can upsell for something that doesn’t require increased capacity. If you’re a startup, you can increase your packages so you’re raising your income from your existing clients and you can remarket to them.
There’s a whole thing that you can go down to do that. If you are an MSP, maybe you want to get people on a learning course. But always think of your capacity because there’s no point in spending an hour with me, wasting your time and mine, planning out a whole thing, and then finding out you’ve got capacity for three more people and those three people are not going to make a huge chunk of extra income for you.
So think about your capacity—that’s my public service announcement for today!
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