Professional Services in Startups

Startups should focus on finding product/market fit and building a repeatable customer acquisition process. While building new and innovative technologies, prospects will regularly ask for professional services. Professional services is a fancy way of saying custom or one-off consulting work. Assuming the bills can be paid and the lights kept on, professional services should generally be avoided until the core business is performing well so as to maintain focus on the product.

Here are a few considerations around professional services in startups:

• Some products require professional services for on-boarding clients or customizing functionality and that’s standard, but most should stay away from them when possible
• Startups would do well to develop a network of other companies to provide professional services for the startup’s customers
• Professional services can be a great way to help with client satisfaction and retention by offering a more comprehensive solution (again, when necessary)
• Quality control with third-party professional services providers is another reason to offer them in-house

Professional services are a standard part of the technology world but can get startups in trouble when too much work is custom and not part of the core product vision. Finding a balance is tough but it’s best to focus on the product and steer clear of one-time consulting work, if possible.

What else? What are your thoughts on professional services in startups?