Starting a Service-Based Business? Read These 4 Keys to Success

A service-based business offers services to people without selling tangible products. Think about salons, laundry services, wedding photographers, house cleaners, car repair companies and coaching service providers – they all are service-based businesses that help people get their stuff done. Starting these types of businesses usually costs less but there are a few challenges unique to this type of venture. If you’re reading this article, we can assume you are either planning to sell a unique service to people or you have already started your small business. So, whatever your idea is or business is about, here are the four keys to become a successful service provider in your industry.

Find Your Niche: Enter an industry that you’re familiar with and offer services that you would use yourself. You must be an expert of that field. If you’re passionate about something, selling might be easier for you. Are you offering what people want? What aspect of your business will make it appealing to customers? To get the answers to these questions, you need to focus on buyer person as, how you’re going to solve their problems, research your competitors in the market and identify interesting ways to attract customers.

Set The Pricing Right: You are here to sell your time and expertise, so you need to choose the right pricing strategy. Price your services too high, and you can never win over your competitors. Price them too low, and you will never be able to turn your business into a successful company. Choose a striking balance between competitive rates and charging your customers for your time and service. The simplest way businesses can charge is by the hour. Your second option is to offer package services and charge a flat fee for a combination of services. You can also go with the combination pricing option and offer your services at an hourly rate and as part of a package.

Learn to Manage Your Finances: A service business has lower overhead costs but that doesn't mean you won't have to have to take care of your finances. Keep track of all of your small business expenses, such as costs of buying new equipment or tools, payment to your vendors and employees and monthly rent if you are running your business from a shop. Create a cash flow budget, make financial projections, keep your payables up-to-date and track the credit you are extending to your customers.

Get Professional Help: Everyone needs help, especially small business owners and aspiring entrepreneurs. Sometimes, it pays off to consult a small business mentor. Getting the right advice can be the difference between your success and failure. Seek professional advice from a business mentor to determine how to manage your business, know where it is heading and create an action plan for growth. Arrange one to one session with a professional small business mentoring service provider so as to get clarity about your business and create a strategic plan to take it to the next level.

Starting a service-based small business is cheap but it needs right skills, knowledge and professional guidance. When you find your niche, choose the right pricing, track your finances and get advice from a small business mentor, then you’ll be able to focus on the most important thing about your business: selling your service and making happy clients. So don’t wait, contact a small business mentoring service provider today to find new ways of selling your services and make your dream a profitable project.

Thompson Peter is an expert coach and he delivers lectures for entrepreneur training courses at various institutes and universities. He has also partnered with an online learning portal.