Starting a service-based business can be fulfilling, but it's important to do your research first. To help you get started, we've put together this guide on the key steps to take when starting your own service-based business.
Choosing a service that you are passionate about is crucial when starting a service-based business. It's easy to get carried away by the excitement and allure of entrepreneurship, but if you lack genuine interest in your chosen service, it will inevitably reflect in your work ethic and the quality of your offerings.
To avoid overextending yourself, it is important to follow a few guidelines. Firstly, refrain from pursuing anything new unless it genuinely excites or interests you. If the available options within your industry seem uninspiring or mundane, consider exploring alternative areas where competition may be lower, but there is still a demand for innovation. Alternatively, you might even contemplate stepping away from traditional employment entirely, as being an entrepreneur does not necessarily imply being a business owner.
Remember, passion is the driving force behind success in service-based businesses. By aligning your interests with the services you provide, you can maintain a high level of motivation, deliver superior quality, and ultimately stand out from the competition.
This is the most important step in starting your service business. If you don't know what people want or need, then there's a good chance that your business will fail.
There are many ways to find out what people want and need:
Choose a service that's easily learnable. When starting a business with the objective of making money, it's important to consider the time and effort required to master a particular skill. Opting for a service that takes months or even years to become proficient in can be counterproductive. Many individuals make the mistake of selecting overly challenging services as their initial foray into self-employment, which can hinder their progress.
However, prioritising an easily learnable service doesn't mean settling for an uninteresting job simply because it doesn't demand extensive training. Instead, explore how your passion can streamline the process and make it more engaging. For instance, if you have a love for dogs but dislike cleaning up after them (or vice versa), you can still offer dog walking services by hiring someone who enjoys both aspects.
By choosing a service that's relatively easy to learn, you can expedite your entry into self-employment while leveraging your passion to create a more fulfilling and rewarding business venture.
Consider selecting a service that offers flexible hours and locations. Flexibility in scheduling is crucial as it allows your business to operate beyond the limitations of standard business hours while ensuring that clients can reach out to you comfortably even outside those hours. Additionally, it's essential for customers to find it convenient (and safe) to meet with you at a suitable location.
Here are a few examples of services that typically offer flexible hours and locations:
Finding partners is a great way to grow your business. You can find mentors, coaches, business partners and networks of fellow business owners through organisations like SCORE (Service Corps of Retired Executives) or BNI (Business Network International). You'll also want to look for other service providers who can refer customers to you. For example, if someone needs their roof repaired after a storm and they call an insurance adjuster who repairs roofs as part of their business, that person may be able to refer to them directly instead of sending them out into the world with no direction at all!
Got questions about starting a service-based business? We've got you covered. Here are answers to some common queries that entrepreneurs often have when venturing into the world of service-oriented enterprises.
It can be difficult to determine who your target market is, especially if you haven't done any market research. The best way to do this is by asking yourself: Who will benefit most from my product or service? Who has the most money to spend on it? You'll also want to consider whether there are any barriers preventing them from purchasing what you're offering (for example, perhaps they don't know about it yet).
Keep in mind that your target market doesn't always have to be defined by demographics; sometimes it's better just knowing where people hang out online or which social media platforms they use regularly.
A business plan is a road map for your business. It should include financial projections, marketing strategies and more.
In addition to these things, the plan should also include information about your target market and how you will reach them.
In order to price your services effectively, you need to know what it will take for you to remain competitive yet profitable.
To determine a realistic rate of pay for yourself and your business expenses, consider:
Whether you're starting a service-based business or looking to expand one that already exists, it's important to do your research. The best way to do this is by talking with other business owners who have experience in the industry and getting feedback from potential customers on what they want and need. You should also consider whether there are any regulations that might affect your business model before committing too much time or money into an idea that may not work out after all!