Every year, entrepreneurs create 305 million startups across the globe. And of enough businesses to nearly equal the US population, only 10% actually survive.
It’s a dog-eat-dog world out there for aspiring business owners. Starting a company is expensive, and running a business that pulls a profit proves to be a Herculean labor. With that in mind, what is the most successful company type to cut your teeth with?
The answer might just be a home service business. This is a community-oriented organization that provides needed services in your area. These are organizations that make consistent profits year over year.
Ready to start your own home-based business? Read on as we discuss how you can get started.
What Exactly Is a Home Service Business Model?
Think of the last time you had a leaky pipe. Or, you didn’t feel like cleaning or walking the dogs. In each situation, you likely called a home service business to come to the rescue.
The name is self-explanatory. Home service businesses provide services to customers in their own homes. It could include any of the following and more:
- Window cleaning
- Carpet shampooing/steaming
- HVAC maintenance
- Pool maintenance
- Pest control
As you can see, there are a lot of options to choose from. You will likely have no trouble finding a particular service that you enjoy providing.
Many of the services on this list are in consistently high demand. If you find a gap market, you could make a lot of dough.
Benefits of Starting a Company in the Home Service Industry
What other benefits are there aside from doing something you enjoy? Well, the next big benefit is that initial costs are relatively low.
Most home service businesses operate without an office or employees. It’s just the owners providing the service out of their own vehicles, with their own personal tools. There’s likely little you need to purchase.
There may be some licenses here or there. You may require some workarounds for the lack of an office, such as a physical address for home business. Compared to most startup types, though, this one is a cakewalk.
How to Start a Home Service Business
So you like the idea. Though easier and more affordable, there are some key aspects to keep in mind. Let’s discuss the things you need to know when building your small business.
Research Your Market
No one wants to start a babysitting service for a neighborhood full of partying bachelors. So, prepare adequately by researching your market. Find out if there are actually people who want to pay for your service.
Take note of the competition. Entering a saturated market means you will have to fight tooth and nail to stay afloat. Entering a market where there is high demand, though, makes your business more desirable.
Create a Business Strategy
Figure out how you are going to make a profit. Importantly, research the going rate in your industry so you can stay competitive. You will likely need an accountant to handle this portion.
Determine what sort of business model you will be employing. Are you going to charge for singular visits, or provide some sort of subscription service? Decide if you want to give a lot of discounts, or provide referrals to get more customers.
In addition to figuring out your sales plan, decide on a promotion strategy. Some businesses spend zero dollars on advertising and rely entirely on word-of-mouth. Tesla is a perfect example of this.
Create Promotional and Informational Material
Customers need a way to identify you and get in contact with you. It’s time to promote yourself. Create billboards, classifieds, and other means of getting the word out there.
Create a website that provides all the necessary information. Contact info, services list, and so on. Keep the info up-to-date and consider handing it out on business cards.
Work Well and Hard
Your initial clients will be a proving ground for your business. If they have a good experience, they’ll tell their friends. Do a poor job, though, and you could be strangling your startup in the crib.
The beginning years of small business ownership will be chaotic and challenging. Rise to the task with patience and optimism. You will learn the ropes and get a feel for how to do it right.
Network with Clients
Use your clientele as a means to get more business. Allow them to refer you to their friends and family. Then, branch out and increase your market share.
Word-of-mouth marketing is, hands down, the most effective kind. People trust their friends, so they will trust recommendations from them. You will get high-quality, consistent customers through these referrals.
Manage Money Well
Money will be tight, there is no getting around it. Business ownership is fraught with a minefield of unforeseen costs. Business management software, licenses, equipment repair, you name it.
Focus on limiting your expenses as much as you possibly can. Save money whenever you get the chance. You never know when a surprise expense will take a chomp out of your account.
However, don’t neglect your employees. The best home services pay their people well and treat them with respect. Remember: the people you hire are building your business for you and deserve the fruits of its success.
Start a Business Today
A home service business is a low-cost startup that allows you to work in a field you’re passionate about. With one, you serve your local community and grow on word-of-mouth. Be careful with your money, have a solid business strategy, and you will likely succeed.
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