The pandemic in 2020 sparked a significant rise in freelancing and entrepreneurial ventures centered around professional services, as many individuals pivoted from traditional employment to offering services they had previously performed for their employers. Since 2019, business applications have surged by a record-breaking 56.7%, with a large portion of these new ventures focused on service-based offerings.
Freelancing, in particular, has grown dramatically, with many people initially taking on side projects before transitioning into full-time roles or independent businesses. By the end of 2024, the freelance workforce is expected to reach 1.57 billion, with projections suggesting that freelancers or outsourced partners could become the majority of the workforce by 2027. The appeal of autonomy and independence draws many to platforms like Upwork and Fiverr to seek additional work; however, these freelancers face challenges in competing against lower-cost international contractors and understanding how to establish sustainable businesses.
For those in the service industry, differentiating on client experience will be essential. Service providers must learn to operationalize their practices, leverage efficiencies, and develop a more personalized, proactive approach. Just as customer experience is becoming even more crucial in sectors like SaaS, e-commerce, and tech, client experience will play an increasingly vital role in service-based fields, helping firms demonstrate value and avoid commoditization. Companies are open to partnering with external providers, but they need guidance to feel confident in how they can work together and that it can rival an in-house employee. Service providers must continually show that even as contractors, they are committed to delivering value.
In fields like accounting and client advisory services, I’ve seen this transformation firsthand. When I started my first business in 2015, there were few remote-based firms and freelancers in this space. Competition was limited, and offshore labor was less prevalent. Now, nearly a decade later, there’s been an explosion of small CAS firms and solopreneurs in this space, with many of the smaller firms incorporating offshore labor for cost efficiency. U.S.-based accountants often now act as relationship managers, overseeing offshore teams and emphasizing client relationships. Today, it’s not just about the deliverable but about building a valued partnership. This shift underscores why client experience is becoming essential in the service industry.
The Future of Freelancing and Service-Based Startups
The low barriers to entry in service-based businesses and the promise of freedom and potential financial gain are drawing many former employees into entrepreneurship. The appeal of “upside” opportunity often outweighs perceived risks, especially when many entrepreneurs see returning to the workforce as a fallback if their venture doesn’t succeed.
This trend is likely to create more opportunities for larger companies to acquire smaller, niche businesses, as we’ve started to see in the accounting industry in 2024. Smaller firms, however, will face challenges competing with limited resources. To thrive, these businesses will need to establish distinct differentiators—whether through unique processes, innovative products, streamlined delivery methods, or specialized systems. Additionally, former employees stepping into business ownership will need to master operationalization while delivering exceptional, personalized client experiences that clearly convey value.
The use of offshore labor for tasks like bookkeeping and administrative work will continue to rise, allowing U.S.-based professionals to focus on more strategic, relationship-building roles. Non-client-facing tasks or routine work will increasingly be handled by offshore contractors within these firms or hired via platforms like Upwork and Fiverr. This shift will transform traditional roles—accountants, marketers, web-designers and other similar professionals—into relationship managers, with business owners and leaders needing to thoughtfully define the clients they serve and the client experiences they deliver. Achieving this will require structured documentation, best practices, operational processes, and communication strategies akin to those used in customer experience (CX) and customer experience management (CXM) practices that have traditionally been used in the SaaS, tech and e-commerce industries.
As talent shortages persist, companies of all sizes will increasingly turn to outsourced departments to meet their needs in these professional fields. Meanwhile, employees will continue gravitating towards smaller firms that offer remote work, flexibility, competitive compensation and faster growth opportunities. This trend will especially impact non-tech B2B service industries, including accounting, marketing, IT, web design, and content creation, amongst others. To stand out in a growing field of competitors, these companies must prioritize personalization, differentiation, and develop a deep focus on their specific niche or ideal client profile (ICP).
What Does This Mean for Small Businesses and Solopreneurs in These Industries?
For small businesses and solopreneurs, the shifts in freelancing and service-based industries will bring both opportunities and challenges. As demand for outsourced services continues to rise, there will be a greater need for specialized talent, automation, and differentiation to stand out in an increasingly crowded marketplace. Entrepreneurs will need to understand how to operationalize their business so it can effectively grow, while also figuring out how to differentiate themselves from the competition, attracting long-term partners that can allow for the efficiencies to produce higher profit margins and greater stability. In addition, they will need to find ways to teach their clients to work with them, as outsourcing over internal hiring has not been the traditional method of operation for business entities.
1. Rethinking Talent and Processes
Small businesses and freelancers will need to identify talent and processes that complement their offerings, focusing more on relationship management and finding new ways to complete more repetitive tasks that can be taught through training. Automation will also become essential for streamlining processes, allowing small teams to maintain efficiency as they scale. Tools for project management, communication, and workflow automation can give service-based professionals a competitive edge, enabling them to handle larger client loads without sacrificing quality. The key will be in finding ways to free up time for high-touch interactions that build client loyalty. Offshoring will likely be part of this equation.
2. Differentiating to Attract and Retain Long-Term Clients
As service-based industries grow more competitive, small businesses will need to go beyond simply providing services; they must differentiate themselves in ways that resonate with clients and help build long-term and valuable relationships. This means building a unique brand and defining what makes their approach special—whether through industry-specific expertise, a highly personalized approach, or specialized processes. Furthermore, it’s not enough to just ‘win’ clients; retaining them as long-term partners will be crucial. This requires clear communication, consistent follow-through, and client experience practices that make each client feel important, valued and understood. By creating a memorable client journey, these businesses can foster loyalty and establish themselves as indispensable partners, rather than interchangeable vendors. Being proactive in the client relationship, asking robust questions, aligning on the vision for a successful relationship, and noting issues before they come up can help to remove the barriers to working together and garner a greater appreciation for the value being created.
3. Learning to Educate Clients on Working Together
For many clients, working with outsourced business providers is still a relatively new experience, and they may be uncertain about what to expect. The client, or relationship, manager will need to take on the role of educator, guiding clients through the process of collaboration and setting clear expectations. This involves not only coaching on workflows and timelines, but also demonstrating the unique value of working with an outsourced partner with high levels of expertise, full access teams and fully developed processes can provide. By positioning themselves as trusted advisors, small business owners and their teams can demystify the relationship, make clients feel confident in the process, and lay the groundwork for long-term partnerships.
4. Developing Small Business and Solopreneurships into Scalable Businesses
Many freelancers and solopreneurs start as one-person operations and scaling these ventures requires a shift in both mindset and operations. Transitioning from solo work to a full-fledged business means building a framework that can support growth—whether through hiring, subcontracting, or the creation of repeatable processes. Those who have historically operated in the role of practitioner will need support and expertise to turn their ventures into viable businesses that operate independently of their direct involvement in every detail and moves them from being in the business to working on the business.
Overall, the future for small businesses and solopreneurs in the service industry is bright but requires strategic thinking and adaptability. With the right mix of talent, automation, client education, and a focus on scalable business practices, these entrepreneurs can position themselves for long-term success in a rapidly changing landscape. All of this translates into the development of intentional practices and experiences with a client-centric focus that will build more stability and more satisfying relationships.
How Do You ‘Win’?
Unique value proposition and delivery (the experience of working with you) – why are you different and how do you deliver it differently?
Company culture and core values
Winning in today’s service industry requires more than delivering a high-quality product or service—it’s about designing an exceptional client experience that sets you apart in a crowded market. Especially for small and growing businesses looking to thrive through outsourcing, the key to winning lies in teaching clients how to work with you seamlessly and demonstrating that the value of your expertise, team, and insights far surpasses the control they might have with an internal hire. In addition, the experience created must leave little room for any comparison on questions of an in-house team to arise.
Here’s how you can achieve this:
1. Teach Your Clients How to Work With You
Many businesses are eager to partner with outsourced service providers but may lack the know-how. The companies that will excel are those that guide their clients through the process, making collaboration intuitive and rewarding. By proactively setting expectations, explaining workflows, and co-creating success plans, you show clients that you’re not only their partner but also their advisor in this engagement. This enables them to appreciate the full scope of the value they receive, from your expertise to the efficiency and support of an entire outsourced team.
2. Deliver a Client Experience That Goes Beyond the Deliverable
In an industry where deliverables can be commoditized, differentiation comes from the experience. A carefully designed client journey should eliminate any reason for clients to question your value. This includes aligning with their values, embedding your company culture into every interaction, and consistently demonstrating your dedication to their success. This approach, known as Client Experience Management (CXM), goes beyond service delivery. It’s about crafting a memorable experience that reinforces your commitment to the partnership, from initial engagement to the completion of every milestone.
All experiences will not look the same and the client journey will be reflective of what it is that you want to create. For some, industry expertise at a low price point with little client interaction will be the sweet spot of their operations, with a focus on a high volume of offshore labor led, automated training and led by few relationship managers. This is more reflective of a SaaS model of operating. For many, it will be high touch, personalized relationships that operate at a much higher price point and provides a unique experience based on key factors that they excel at plus with a different style of service.
3. Lead Proactively, Not Reactively
Thriving client relationships are built on proactive, rather than reactive, leadership. This looks like a collaboratively designed client success plan that outlines shared goals, noting and communicating issues before they arise, truly understanding your clients and the industries that they operate in and being a valued partner in your client’s business.
4. Create Small Moments of ‘Wow’
The most successful client relationships are built on moments of genuine connection. Going beyond client expectations doesn’t mean exceeding the scope of work without compensation; rather, it’s about listening deeply, celebrating mutual successes, and showing appreciation for the partnership. Small, thoughtful gestures that reflect you’re truly listening leave a lasting impact, demonstrating that you see them as more than a transaction—they’re valued partners.
5. Align Your Pricing With Your Value
Winning also means pricing yourself to reflect the value you bring. This means intentionally signing clients who align with your vision, values, and pricing structure. Though it may feel difficult, saying no to clients who don’t appreciate your value ultimately prevents the frustration and strain of over-delivering for less. When your pricing supports healthy margins, you can celebrate your clients and team alike, reinvesting in ways that amplify future value. Serving aligned clients allows you to operate with integrity, invest in improvements, and deliver the exceptional experiences that keep clients returning.
6. Build an Intentional, Value-Driven Culture
Every touchpoint in the client journey should reflect your company’s values. When clients see that you operate from a place of intention and dedication, it strengthens the trust in your partnership. By focusing on clients who share these values, you create an ecosystem where both you and your clients thrive. This alignment ensures that you’re working with clients who appreciate the full depth of your service, creating a mutually rewarding dynamic that benefits everyone involved.
7. Create Clients Who Sing Your Praises
All of these efforts culminate in a client experience that leaves clients feeling heard, seen, and valued. When you lead with intention, act proactively, and create small moments of joy, you transform clients into advocates. These clients aren’t just satisfied—they’re enthusiastic champions of your brand, ready to recommend you to others because of the exceptional partnership you’ve built.
By combining operational excellence with a client-first approach, you create a compelling value proposition that goes beyond service delivery. Winning isn’t just about meeting expectations; it’s about exceeding them, building partnerships grounded in trust, and crafting an experience that clients remember and celebrate. In doing so, you create a business that stands the test of time, fortified by a loyal client base and a reputation for extraordinary service.
So How Do You Do This?
Achieving success in the modern service industry begins with intentionality—clarifying your purpose, target audience, and desired client experience. As A.G. Lafley aptly puts it in his book Playing to Win, “You can’t be everything to everyone. Strategy is about making choices, trade-offs; it’s about deliberately choosing to be different.” This philosophy underscores the importance of defining your niche, designing your service model, and aligning every facet of your business to reflect your unique value proposition.
Here’s how you can systematically approach this transformation:
1. Define Your Focus and Ideal Client Profile (ICP):
Start by identifying your ideal client and the specific challenges you’re best positioned to solve. What industries do you serve? What problems do your services address? This clarity allows you to tailor your offerings, communication, and experience to resonate deeply with your target audience.
2. Design an Exceptional Client Experience:
Create a detailed vision for how clients will interact with your business at every touchpoint. From onboarding to project delivery and beyond, map out a journey that’s proactive, personalized, and leaves clients feeling supported and valued. Use frameworks like a Client Experience (CX) Model to operationalize this vision.
3. Build Operational Processes for Consistency:
Consistency in delivery is critical to creating trust and credibility. Develop repeatable, scalable processes that ensure high-quality service, no matter the volume or complexity of client needs. Document workflows, train your team, and leverage automation for routine tasks.
4. Align Your Team with Your Vision:
Whether you’re solo or managing a team, everyone involved must embody your core values and commitment to exceptional client service. Invest in training that aligns team members with your vision and equips them to deliver consistent, high-touch experiences.
5. Embrace Tools and Technology:
Utilize project management, CRM, and workflow tools to streamline operations and enhance collaboration. Technology can help you handle complex processes, track client satisfaction, and free up time for meaningful, strategic interactions with clients.
6. Leverage a Proven CX Framework:
My CX Framework is designed specifically for service-based businesses to provide actionable strategies and tools for creating exceptional client experiences. From operational processes to communication strategies, it helps you differentiate your business, scale sustainably, and build loyalty with your clients.
Delivery – What I Can Help Support With
I offer a range of solutions to help service-based businesses and solopreneurs design and implement a client-centric approach that drives success. Depending on your needs and preferred level of involvement, I can provide customized-support solutions that will match your needs and budget today:
1. 1x Comprehensive CX Framework Development:
A step-by-step framework that helps you build a thriving, client-centric business. This includes tools, systems, and processes to create repeatable, scalable activities for exceptional client experiences.
2. Tailored Engagements:
- Limited 6-12 Week Engagements: For businesses seeking hands-on support in defining their CX strategy, operationalizing workflows, or training teams to align with a client-first approach.
- Fully Outsourced Support: Choose from three tiers of services that include strategy development, implementation, and ongoing management of your client experience operations on an ongoing basis.
3. DIY Resources and Training (Coming Soon):
- Online Portal: A self-paced learning platform offering courses and templates for businesses that prefer a DIY approach.
- CX Strategy Book: A comprehensive guide to building and scaling service-based businesses with client experience at the forefront.
By leveraging these resources, you can confidently position your business for long-term success, creating not just satisfied clients but loyal advocates who champion your brand. Whether you’re looking to scale quickly, refine your processes, or elevate your client relationships, I’m here to guide you every step of the way.
Resources