There are differences between running a business that provides goods and one that provides a service. Most notably is that there is no tangible product with a service. Providing a service is a great way to generate income on a full or part-time level. Some include pet services like walking or sitting. Some consumers will pay for personal care services such as managing their schedule, health care, or being a personal concierge. There are property management services available at all levels whether you own multiple properties or just need someone to look after your home while on vacation. The list of opportunities goes on and on. A quick internet search will turn up many other ideas.
Here are a few tips to keep in mind when operating a service-based business.
Be an expert. For example, if you are providing computer performance consulting be sure you have the technical background required. Nothing more embarrassing to arrive as a Windows expert and realize the customer is running Linux. Know what you are providing well before starting.
Provide Value. A service requires you to show value. Since people can drive away a new car or wear purchased clothing or use some other goods that they can touch before experiencing, a service requires you to be more transparent. For example, as a personal assistant show how you plan to add time to your client’s day. What will be provided that they accomplish on their own due to time restraints. Show potential customers why it’s better to hire you rather than squeeze something into their schedule.
Examine your pricing. This is one of the hardest parts of any service business. Decide what to charge that is fair and reasonable for both you and the customer. Examine the market for similar services. And follow the industry when starting. Grossly undercutting may lead to suspicion as to why you are so cheap. On the other hand, overpricing may send potential customers shopping elsewhere. As demand and reputation increase you can look at price increases. Getting the right formula from the start will ensure you have the best chance at making the profit needed.
Figure out ways to grow. Just as manufacturers expand their product line regularly, add new services to increase growth and revenue. Keep up with your industry and plan how to grow with it.
Ted Saul is a business coach that assists with Business Plans and Project Management. He earned his MBA from Regis University along with a Masters in project management. He is also ITIL 4.0 certified. Ted can be reached on LinkedIn or by emailing TedSaulbiz@gmail.com.