The Entrepreneur's Checklist: How to Start a Service Business

Are you ready to turn your passion and skills into a thriving service business? Whether you're a budding entrepreneur or ready to put a unique set of talents to use, starting a service business can be a rewarding and profitable endeavor. 

However, the path to success in the world of service entrepreneurship is not without its challenges. From refining your idea to becoming a master of marketing, there's a lot to consider. In this blog, we’ll discuss seven key tips on how to start a service business the right way. 

What is a Service Business?

As the name suggests, a service business provides a service or services to benefit its customers. The word “service” here refers to tasks that require specialized skills or expertise. This is unlike product-based businesses, where physical products are sold.

For example, a pet grooming business provides expert-level pet grooming services. If a pet owner wants expert-level quality or doesn’t have the time to groom their pet, they’ll turn to the groomer. This is how all service businesses work — they identify a need that customers have and position themselves to fill it. 

Some other popular service business ideas range from dry cleaning and tax accounting to car repair and website design. By choosing the most in-demand service, business owners can build a name for themselves in their local community. However, keep in mind that the best service business ideas are those fueled by passion and skill.  

No matter what industry you want to break into, here’s what to know to start a service business:

  1. Know what your customers want
  2. Create a compelling offer
  3. Package your service at a profitable price that’s acceptable to customers

How to Start a Service Business: 7 Tips for Success

Ready to turn your business idea into a reality? Here are seven key tips for how to start a service business and set yourself up for success. 

1. Define Your Business Idea and Goals

Start with local market research to find out if there’s a demand for services that you can offer and what people are willing to pay for these services. If you already have competitors, you need to ensure that either your prices, offers, or services give customers a good reason to choose you.

Finally, set realistic goals for your business. How many customers do you want to serve by the end of [X period], and how much revenue do you want to achieve by [Y period]? 

2. Create a Business Plan 

A structured business plan is the key to a strong, coordinated business strategy. Think of your business plan as a master blueprint, starting from core concepts and going through to execution. Whether you’re planning out how to start a home service business or starting an auto shop, every service company needs a clear business plan. Typically, it should include a summary of your:

  • Mission statement
  • Business idea and service offering
  • Marketing and sales strategy
  • Operational plan
  • Financial plan 

Putting a business plan together can feel overwhelming, but it will help you scope out your means and ambitions. This will help you avoid common errors, stay within budget, and maximize your chances for success. 

Let’s look at an example. During your planning, you might discover that budget is an issue. If you had gone ahead without realizing you were underfunded, it could have been a major problem. But now that you know, you can opt to start your business on a small, part-time scale until you have a foundation of recurring clientele.

3. Use a Vanity Phone Number

Phone numbers remain one of the most important points of contact for potential customers. However, a generic string of numbers can be hard to remember. Make your brand memorable and help customers reach you with a distinctive vanity phone number.

For example, consider the health and wellness vanity numbers. Your customers will find it easier to remember vanity numbers like 305-500-YOGA or 1-800-HOMECARE than a standard phone number. When you buy vanity numbers that are easy to remember, you’ll instantly stand apart from your competitors.  

4. Get Legally Compliant

Ensuring legal compliance in your field is a vital way to build credibility and stay on the right side of the law. It helps you secure personal liability protection, get tax benefits, and obtain corporate bank accounts and small business loans. 

Failing to achieve compliance can lead to a range of troubles down the road, including legal challenges and penalties. Be sure to register your business, apply for an employer identification number (EIN), and check with your local governing body about any specific licenses you need.

5. Build a Strong Online Presence

The next step is to build a strong online presence. Invest in a website and start at least one social media account on popular channels like Facebook, TikTok, or Instagram. Consider the audience and experience each platform has, as well as the type of content you want to create when choosing the right social media platform for your business. 

Finally, be sure to set up a Google Business Profile to help nearby customers find you. Politely encourage customers to provide positive reviews for your services on all of your online channels to boost your credibility and help you generate leads.

6. Get the Word Out

One of the most important tips for starting a service business is to actively promote your business in the community. No one will know that your business exists until you get the word out. There are several types of marketing that will yield excellent results and get the word out about your new business. 

Aside from promoting in local Facebook groups, the local radio station, and so on, ask happy customers to refer you to others. Provide special offers to generate some initial traction and start customer relationships on a positive note.

7. Prioritize Quality, Customer Service, and Relationships

Successful service businesses prioritize relationships with customers by offering excellent customer service and customer support. You should always think about how you can provide more value to your customers and seek opportunities to learn how they feel. One strategy is to carry out regular feedback surveys, which give you the knowledge to identify any issues and address them as soon as they arise. Loyal, repeat customers are the foundation of most profitable service companies.

Grow Your Service Business with a Vanity Number

Our custom vanity numbers can set your business apart from the competition. Aside from being memorable, they’re also a great way to increase advertising responsiveness and generate more traffic for your business.

There are many ways to start a service business, but having a custom phone number is one of the easiest ways to get started. Get started with RingBoost and create your own vanity number today!

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