The Pros and Cons of Running a Service Business

All of us have our own set of skills and areas of expertise—all you really need to possess is the drive, dedication and the desire to turn your skills into a revenue generating opportunity.

A service based business is difficult to start and continue simply because in essence, you will be basically selling yourself and not a product. And in a consumer conscious world, your biggest challenge as a service based business owner will be in building and providing a tangible experience of your services to a customer.

The entire crux of a service based business is centered on your ability to not only reach the right customers, but to also maintain your clientele.

Everything from your skills, to your professional competence to your customer service and relationship building abilities to how well you can package yourself and your services to suit the needs of your customers will be under the glare and yes scrutinized by your potential clients. In the service based business it helps to remember at all times that the product that you will be selling your customers primarily, is you.

However if you can get past the initial hiccups of starting your service business, the rewards can be more than satisfactory. The time, effort and hard work will pay of rich dividends in the form of a thriving business, good revenue and in the opportunity of letting loose your creative skills and interests.

Every business is subject to volatile market trends, various degrees of customer satisfaction and expectations and the numerous laws of marketing and publicity etc. However in the service business the onus of success almost always is placed with the customer. Since a service business is where you are offering your customer some form of service, the only way he/she can access your expertise or skills is by actually giving you a try. And if you are new or unknown, getting set into the business can be difficult.

Although this should not deter you if your mind is made up, one of the best ways of assessing any situation or as is the case a business, is to consider the pros and the cons very carefully and based on that one can chart out a further course of action.

Pros of the service business

Undoubtedly there are several advantages of starting out your own service business. Here are some of the most obvious ones-

You get to be your own boss: This is one of the top reasons of getting not just into the service business, but any business. Being the boss, you are in effect in control of your time, resources and future, your destiny. No more being answerable to higher authorities, no more having to adhere to rules and regulations laid out by someone else. You can plan and organize your life according to your wishes.

A major selling point of the service business is that there is no end to the kinds of service based business ideas to choose from. From child care, to pet care, VA services to resume writing or domestic services such as housekeeping or errand service the list just goes on and on. If you have a skill or are good with anything and you feel that there is a market for selling it, then it is an option definitely worth exploring.

In most instances, the ease of setting up the business and the relatively low investment required especially if you are running it out of your home is a major contributing factor. If you have some spare space or room, then with a few adjustments and changes you can easily run your business. For example if you are planning on becoming a VA, all you really need is a computer with internet connection, a phone and fax machine, a desk and chair and some basic office stationary.

Money: On the top of most people’s list, a service business has the potential of providing you with good revenue. If you plan your business well, you sit to gain income that can even surpass your expectations!

Cons of the service business
Risk– One of the biggest drawbacks to this business is the risk involved. You may be skilled at your job or service, but without the backing of a good business plan and marketing strategies the chances of your business succeeding is almost zero. Another risk factor is the off hand chance that even after careful planning and analysis, the market that you intend to break into will not respond favorably.

Another drawback to the service business is the lack of a tangible product for the customer can see or touch making it difficult for a customer to accept your skills based only on your word. It can be especially difficult to convince a new customer of your skills and superiority of service.

Uncertainty: this is something that comes with the job. Yes, it is not easy being a business owner, and while it is the perfect opportunity to showcase and utilize your talents and skills the sheer uncertainty of whether or not you will succeed requires a strong and positive mindset. Not a lot of people have the tenacity to weather storms.

No guarantees of a steady source of income/ no benefits- your income will be dependant of the work available only. Besides this, you will be responsible for paying out your health insurance premium or life insurance.

ConclusionStarting your own service business can be a dream come true. However if you really want to succeed in this business, the best way forward would be through careful consideration of all contributing factors. Condition yourself to look at the bigger picture in the future, while not loosing focus of what is required in the present.

5 tips to help starting a lean service business!

We've touched on it a little before now but what if it comes down to it and you really have no money to start your business? Here are five tips for starting a professional services business with little or no money.

You could start a professional services business if you have in-demand expertise of any sort. While marketable professional services such as accounting, legal, financial advisory, or business management services are the basis for many startups, in fact, the possibilities are much broader than that. Are you a master gardener, painter, cleaner, builder, a human resources professional, a talented business writer, a technology services pro, or a marketing and public relations whiz? All these skills ,including many more, can be the basis for a successful small business if you combine them with an entrepreneurial spirit.

One of the appeals of starting a professional services business is that it generally requires little capital; its product is your expertise. There will be some startup expenses and you may need business insurance and possibly an accountant, but the up-front investment in total probably will be relatively modest.

Here are five tips for starting a professional service business.

Start With a Strong CV
Since a professional services business must be built on your knowledge and skills, a strong knowledge in the area of your expertise will go a long way when it comes to bringing in customers. CV-boosters include a degree from a prestigious institution, professional credentials that indicate a high level of accomplishment and knowledge, and work experience with a firm or firms well respected in your profession. The stronger your credentials, the more doors that will be open to you as you begin to market your business.

Leave Your Employer on Good Terms
Often a firm where you worked can be a good source of business for your startup, so be sure to leave on good terms with colleagues and management. Your relationship with your ex-employer can be especially powerful if your new firm offers differentiated but related services or targets different customers. For example, often as companies grow, so does the size of their customers; as a result, they have to turn away some potential clients who are too small for them to serve profitably. Customers who are too small for your ex-employer could be just the right size for your startup, and your old firm may be happy to refer them to you.

Get Comfortable Networking
Networking is one of the best ways for a professional services business to attract customers, so make meeting and greeting a top priority. Join your local small business association and become active in groups in your community and on social media. When you make promising contacts, be prepared to concisely and clearly describe your services, your expertise, and what sets your business apart, and have a list of references available so potential customers can easily check your background and credentials.

Establish Relationships With Businesses That Can Refer Business to You
Look for opportunities to develop mutually beneficial relationships with other businesses. For example, if you are an accountant, you could seek out a law firm that specializes in business law. Offer to refer your clients to them when they need legal services if they will return the favor and refer small businesses needing accounting services to you.

Ask Satisfied Customers for Their Help
There is no better way to grow your business than through positive word of mouth, so be proactive in trying to generate it for your business. For example, make a habit of asking satisfied customers for referrals and for approval to use them as references.



This is a sure-fire way to get some work through the door! hope you've enjoyed reading, until next time.

The Unlikely Businessman

How to motivate yourself to work from home!

Working from home is great. There is no two ways about it, getting up late having a nice breakfast, sitting in a comfy chair in your pants and cracking on with the days graft.

The problem lies when it comes to doing the work, a lot of people struggle to stay motivated at home because of constant distractions that simple don't occur in an office environment.

There is, fortunately, a few things you can do to help you stay on top of things when working from home:

1. Get dressed

Getting dressed will make you feel like your going to work, rather than getting ready to sit in bed and watch box sets all day. It will give you purpose and motivation to get some work done. 

2. Have a workspace 

If you've got a spareroom you can transform into an office, great, if not just a desk will do, as long as it is solely for work. Having this space purely for working will cut out some of the distractions that occur when you're just sitting in the kitchen or on the sofa. 

3. Switch your personal mobile off

Smart phones are awesome, they have revolutionised the way we do business. They are however, a massive distraction, you cannot get work done if every two minutes you are getting notifications from Twitter, Facebook, Candy Smash or whatever else! Switch them off to save the distraction or if you need it for business, switch the notifications for these apps off!

So that should help you out a bit when you're working from home. I hope you've enjoyed this post take a flick through the other posts and share them with your friends! you can get to me on Twitter @fancyservices

Thanks!

-M