Leveling Up with Eric Siu
Service-Based Businesses Are About to Change FOREVER
Feb 6, 2025
The future of service-based businesses is shifting dramatically as traditional agency models face obsolescence. Learn how talent and creativity are essential for competitiveness. The use of AI is explored as a game-changing tool for efficiency. Discover the characteristics that define top talent in this evolving landscape. Plus, insights on what it takes to build a billion-dollar agency provide valuable lessons for aspiring entrepreneurs.
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Quick takeaways
- The traditional agency model is collapsing as service-based businesses shift towards tech-enabled models that emphasize efficiency and automation.
- Future success in service-based businesses will hinge on attracting top talent, prioritizing creativity, and leveraging AI to enhance productivity.
Deep dives
The Shift in Service-Based Business Valuation
Service-based businesses are anticipated to see a significant increase in value over the next five to ten years. Historically, these businesses were not as highly regarded as tech companies due to their lower scalability and profitability, as evidenced by lower sale multiples compared to software companies. However, there is a growing trend of tech-enabled service models, particularly among prominent agencies and consulting firms, which could change this perception. As these businesses evolve and adapt, they may leverage technology to improve processes and enhance their overall value in the marketplace.
