If you’re looking to start your own business, one option to consider is a business that is service-based. What is a service business? In short, it’s a company that provides services rather than products. This can be a great path for an entrepreneur, as the startup costs can be relatively low. Without products or manufacturing, you may be able to start your business with a phone, a website, and a few tools of your trade.
In this blog post, we will discuss the basics of starting a service business and outline some of the pros and cons of this type of company.
Is a Type of Business Model Right for You?
The first question you need to ask yourself is whether a service-based business is right for you. What are your skills and strengths? What do you enjoy doing? Are there services that you could provide that would be in high demand?
You’ll need a high energy level to get your business off the ground. Also, you will need to be good at marketing and sales, as you’ll need to generate leads and convert them into paying customers. You’ll need patience and a positive attitude when dealing with customers.
It’s also really helpful if you are a quick study. You’ll have a lot to learn, so if you enjoy picking up new information and putting it into practice, you’ll be well suited for this type of business.
The Pros of Starting a Service Business
There are several advantages to starting a business that is service-based:
- Low startup costs: As mentioned earlier, you may be able to start your business with little more than a phone and a website.
- Personal interaction: If you enjoy working with people, this business model can be a great way to do that.
- The ability to be your own boss: One of the main reasons people start their own businesses is the desire to be their own boss. With a service business, you have the ability to control your own destiny.
- Flexibility: This type of business can be a great way to have flexibility in your work schedule.
The Cons of Starting a Service Business
There are also some disadvantages to starting a service business:
- Limited potential for growth: It can be difficult to grow a business that is service-based if what you’re selling is your personal attention or skills. You need to be able to train others in order to grow.
- Competition: There may be a lot of competition in your area for the services you provide. You can overcome that problem by specializing in something no one else can match exactly.
- Inconsistent income: The income from a service business can be inconsistent, as it may depend on the number of clients you have and the work you’re able to take on.
- Limited marketing opportunities: It can be more difficult to market the type of services your business provides than a product-based business may have. You may be limited in your service area, for instance.
Field Service Business: A Special Type of Service Business
There is a special category of service business known as a field service business. Field service businesses provide services to clients in their homes or places of business. This can be a great option for entrepreneurs who are comfortable working one-on-one with clients.
A lot of businesses fall under the field service business umbrella. Some examples of field service businesses include:
- Home cleaning
- Lawn care
- Carpet cleaning
- Appliance repair
- Pool cleaning & service
- HVAC services
- Pest control
- Sewer maintenance
- Pet care
- Delivery services
If you’re thinking of starting a field service business, be sure to do your research and understand the challenges and opportunities that come with this type of company. For example, you’ll need to manage vehicles, routing, and scheduling for your team.
That’s where ServiceWorks comes in. ServiceWorks is an all-in-one solution for managing your field service business. With ServiceWorks, you can manage your team, schedule appointments, dispatch work orders, and invoicing – all from one platform.
ServiceWorks is a complete back-office solution for entrepreneurs who want to start a field service business. It’s so affordable that you can start using it even if you’re the only employee of your business, and flexible enough to grow with you as your business grows.
Take the First Step
The first step in starting a service business is to do a little research. Check out the Small Business Administration website — it’s full of free tools and resources to help you get started. You could also visit an SBA operated Small Business Development Center near you and talk with an advisor or take a class for free.
If you’re ready to take the next step in starting a field service business, sign up for ServiceWorks today and give it a test drive! You can try it free for 14 days, no credit card required.