{"id":4413,"date":"2019-05-02T11:00:18","date_gmt":"2019-05-02T15:00:18","guid":{"rendered":"https:\/\/marketing.dev.logojoy.com\/?p=4413"},"modified":"2023-04-28T20:14:51","modified_gmt":"2023-04-29T00:14:51","slug":"how-to-start-a-service-business","status":"publish","type":"post","link":"https:\/\/wordpress-715453-3009179.cloudwaysapps.com\/blog\/how-to-start-a-service-business\/","title":{"rendered":"How to Start a Service Business (and Make Money From Your Skills)"},"content":{"rendered":"
Service business owners are the everyday heroes who make life run smoothly. Think of the people who fix your car, cut your hair, do your taxes, walk your dog, design your website, install flooring, coach you through a major life change, photograph your wedding, and clean your eavestroughs.<\/p>\n
Whether it\u2019s something indulgent or practical, service-based businesses are all about helping people get stuff done.<\/p>\n
<\/p>\n
And from an entrepreneurial perspective, these types of businesses usually cost much less to launch than e-commerce startups. With little to no inventory to worry about, service businesses can be quick to start \u2014 they (mostly) involve your time and skills.<\/p>\n
In other words, you get to decide how much time and energy you want to put into the business.<\/p>\n
Reasons to start a service business:<\/strong><\/p>\n Before you begin your journey to entrepreneurship, there are a few key questions to answer that will set you up for future success. Don’t worry \u2014 we’ll help you go through each of them.<\/p>\n Of course, this is the first thing to tackle. What are you going to sell, and how\/where will you be selling it?<\/p>\n According to Bizfluent<\/a>, the top service businesses in 2018 included day care, self-help counselling, online education, auto and computer repair, home-based laundry services, pet care, solar panel installation, as well as social networking and tech consulting.<\/p>\n <\/p>\n Maybe you work in marketing for a large company and are looking to branch out on your own. Or, you want to turn your photography hobby into a money-making side business by exploring creative photo shoot ideas<\/a>.<\/p>\n Or maybe you simply know you want to help people in one area of their lives and you\u2019re building up a service business idea around that.<\/p>\n There\u2019s really no limit to what you can offer \u2014 but make sure that what you\u2019re offering is something people actually<\/strong> want to buy. Take the time to research your idea thoroughly to make sure there’s a market for it.<\/p>\n Once you\u2019ve settled on an idea, sit down and think about what you can do to make your service business unique. You can even take a look at your competitors and find ways to differentiate your offering in some way. It\u2019s important to stand out, and really sell yourself as the product.<\/p>\n Say it out loud: \u201cI am the product!\u201d<\/p>\n \u201cI AM THE PRODUCT!\u201d<\/p>\n Now, to the money-making business.<\/p>\n This is a big one, and takes a lot of thought and evaluation. Price your services too low, and you\u2019ll never turn a profit. Price them too high, and you\u2019ll scare away potential clients.<\/p>\n Sometimes people will luck out by guessing a number that they feel their service is worth, and people miraculously jump on board with it…but it’s usually not that simple. Location, competition, and expertise are three of many things to consider when thinking about how to price your offerings.<\/p>\n No matter what way you slice it, there are three main strategies you can use to price a service-based business. The one you choose will depend on what kind of services you offer.<\/p>\n The simplest way freelancers and service-based businesses can charge is by the hour. Your potential clients will also be familiar with this model since many regular employees earn money at an hourly rate.<\/p>\n Let\u2019s look at an example of hourly pricing in action:<\/p>\n <\/p>\n Yoga Tree Studio<\/a> offers a variety of treatments and services, many of which are priced out by the hour. Hourly pricing makes good sense in this situation since the effectiveness of their service is time based.<\/p>\n It’s also a smart move to offer three tutoring options at different rates. Having one rigid hourly rate might turn some budget-minded people away.<\/p>\n When you offer package services, you charge a flat fee for a task or combination of services.<\/p>\n For example, a freelance writer can write a blog post for $200, no matter how long it takes. That\u2019s a package service. That same writer can also perform keyword research, write a blog post, offer two rounds of creative revisions, and upload it to WordPress for $450. That\u2019s another (more valuable) package.<\/p>\n Let\u2019s look at an example of package pricing:<\/p>\n <\/p>\n The Yes Girls<\/a> offer four wedding planning package options, including the two shown above:<\/p>\n Package services are a smart idea for this type of business because people seek out wedding planners to unload the burden of event planning.<\/p>\n They don\u2019t want to hire someone to \u201chelp with wedding planning for X number of hours at X rate.\u201d They want to tick tasks off their list: find a venue, hire vendors, coordinate rehearsal, and more. Package services highlight value and “bundled services” for customers.<\/p>\n Combination pricing is when you offer your services at an hourly rate and as part of a package.<\/p>\n\n
What’s your service business idea?<\/h2>\n
How will your price your services?<\/h2>\n
Strategy #1: Hourly rate pricing<\/h3>\n
Strategy #2: Package service pricing<\/h3>\n
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Strategy #3: Combination pricing<\/h3>\n