It seems that with each year passing, the service industry becomes more and more developed. Most of us cannot even imagine going more than a week without the need for skilled professionals of any kind.
The number of small business owners grows, providing more possibilities and career opportunities. More than 70% of all jobs in the US belong to service-based businesses. So, is there anything for someone who plans to become an entrepreneur?
The simple answer is yes, and there is even more than you have thought about. In general, the cost of starting a small business is less than if you decide to sell physical products. At the same time, local regulations are usually not as strict and the profit can be achieved much faster.
In this article, you will learn about what exactly a service business is, its types and benefits, as well as what personalized services small businesses can provide.
The Definition of the Service Business
Unlike product-based businesses that specialize in producing and selling physical products, service businesses have a goal to provide potential customers with things that do not have a physical base. These include personal labor, specific expertise, and various types of professional services.
These can only be limited by your imagination and include everything that has high demand. Common examples include hospitality services, healthcare services, accounting services, pet care services, business consulting, and many more.
Services are usually provided by the small and medium-sized businesses. The potential clients can include both regular people and more prominent organizations. The growth point can be landing a contract with a company, allowing business owners to hire more people and introduce themselves to the broader audience sector in the future.
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Key Elements of a Successful Service Business
Service delivery has many differences when compared to product-based businesses. The focus is on service offerings and benefits. The elements that can define service-based businesses include Intangibility, Customization, and Customer Relations.
Intangibility
Specialized services are not something you can set, touch, or store. If you want to get a massage, you are not taking anything with you. Or when you are getting subscriptions, there is no physical equivalent to your purchase.
Intangible services cannot be personally evaluated. This is why most of the decisions are made based on social media reviews from repeat customers. Word-of-mouth referrals are also becoming one of the most popular ways of gaining new customers.
Customization
If you want to meet customer expectations and provide excellent customer service - you have to be flexible. Modern consumers have high expectations, so if you want to create a successful business, customer satisfaction must be a priority.
You must be able to approach everyone on a personal level and tailor your services to their specific needs. This way, you will create a stronger bond with your client and gain a competitive edge.
Customer Interaction
Many service businesses interact with the client every step of the way. And each of these conversations is crucial, from the first consultation with a manager to the point when they finish providing the service.
Every step can influence customer satisfaction and general customer experience. This is why you need to be polite and professional when offering services.
Types of Service Businesses
The service industry has a very broad spectrum of businesses and what they provide. There are several types of service businesses, based on who the customer is, what sector the business operates in, and the type of services. Let's look into some of them.
Industry-based Service Businesses
Such service businesses are based on the customer's needs and what industry doesn't belong to. The most common categories include:
1. Marketing services
2. Technology services
3. Logistics services
4. Healthcare services
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personal trainers
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home sitters
5. Hospitality industry services
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Consumer Service Businesses
The target market for consumer service businesses is a single individual. Examples include tutoring services, home services, beauty procedures, healthcare, and mobile services. Similar to product-based businesses, such companies have the goal of satisfying the particular needs of a person.
B2B Service Businesses
B2B stands for Business-to-business. According to the name, such service companies work with other businesses. The examples include
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marketing services
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corporate events
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analytics
The purpose of B2B companies is to help establish various business processes. The main goal is to increase the income of the company you are working for.
The Best Service Business Ideas
Whether you have been working for other businesses in the industry for a long time and decided to start something on your own or maybe have a skill that you can make a profit off, there are plenty of service-based businesses to look into. We have created a list of options for you to pick from. If you are interested in providing remote services, there are plenty of choices.
Marketing Agency
With numerous options in the target market, catching the eye of the customer is one of the top priorities of the company. Digital marketing services are in high demand in the market.
The specialists work on continuous improvement of customer satisfaction and customer experience by:
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continuous improvement of the social media campaigns;
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collecting customer feedback;
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analyzing data on various platforms;
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boosting the amount of good online reviews;
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making sure the company provides great customer service.
There are many more aspects of marking. However, with an effective campaign, your sales will grow continuously. You'll require tools for communication, campaign management, and analytics to make data-driven decisions.
Create Online Platforms for Learning
There are lots of busy professionals who are willing to share their knowledge and teach others. Yet going from home to home or inviting the students to your place is not as common nowadays.
This is where online courses come in. Such platforms provide a broad spectrum of things to learn, and many specialists to everyone's taste.
On the other hand, you can focus on creating a service business as a platform for online classes that can be used by educators who already have a set of students. The goal is to create comfortable software to be used for such purposes.
Cleaning Services
If you have a passion for cleaning - this home service business is for you. The starter costs are minimal, so why not turn your personal labor into profit?
For starters, you can provide services to individual houses. Most of the time, it is going to be one or two tasks, like cleaning the windows or washing the floors. Such businesses are a great way to create repeat customers as well.
As time goes by, you can hire more workers to cover more clients. Enough experience and work hands will land you a contract with other businesses.
Event planning services
Are you the one who always has ideas for how to celebrate a friend's birthday? Or maybe you host the most memorable parties? Then why not try yourself in event planning?
Start by gathering experience by organizing parties for friends and family. Make photos and videos for a portfolio. And don't forget about collecting reviews!
Handyman Services
Unfortunately, not everyone has a dad or a grandfather to help if the sink is leaking. And the fear of messing everything up even more does not help. So, if you are someone who enjoys fixing stuff around the house, what about starting a handyman service business?
If you already have a toolbox, the initial capital can be less than 100 dollars. Remember to check if the area you live in has a market opportunity for someone with your skills.
Legal Services
There is a great variety of legal services to provide. You can specialize in stolen property, housing disputes, contract evaluation, and many, many more.
Many of them can be provided without leaving your home. Find the area in which you have expertise or interest, and make sure you have primary education to provide legal advice.
Accountant Services
The amount of small business growth every day. Most of them do not have the need to hire an accountant as part of their team.
However, that does not mean that these services are not in demand. Manu business owners prefer to work with a 3rd party to get things in order every once in a while. So, if you are tired of working 9 to 5 or maybe looking for some additional income, this might be your option.
Home Childcare Service Business
In most families, both parents work and make money for a living. Unfortunately, this does not leave enough time for the care of a child. Let's be real; the economic situation will not allow for one parent to quit.
What solution is there? How about childcare? If you adore kids and love spending time with your nephews or your own little ones, this is an opportunity for you.
Ask your close people to spread the word and give some recommendations. If there are many families in your area looking for someone to look after their kid, you'll instantly have customers lining up.
Training Services
If you have profound knowledge about human health and physics, how about creating a service business? Staying healthy is always a priority. So why not help others with your skills?
You can be a gym fan and become a personal trainer in the local area. For people who do not feel comfortable there, do not have time, or have other training preferences, you can provide online training sessions.
Photography
Many people love taking photos. We are doing this almost every day! Some take photos of their kids or cats, some of their new purchases, or we love to put updates on Instagram.
However, this is very different from how the professional photos are made. When we have a special occasion or there is a specific moment to capture, we want everything to be perfect.
If you are a photography enthusiast or have friends who are interested in this area, why not create a successful service business? Something is always happening: people are getting married, getting promoted, and having birthday parties. All the people want to keep this moment in their hearts. So, why not to help them?
Local Delivery Service
Time is of the essence for many of us. Leaving a couple of hours in your schedule to leave your house, drive several miles to the store, and bring everything back home can be consuming. This is why delivery service businesses are in demand.
You can choose to deliver only specific things, like food service delivery, or be flexible. Many people need their documents, parcels, and smaller orders delivered to the apartment.
If you have a car, the investment will be needed only to launch the tracking and order software. With modern technologies, creating an app or a website is not complicated and can take up to a month.
Content Creating Services
The Internet and social media can control the future of any small business. Establishing brand awareness and keeping the audience engaged is a must. This is why content creation has become one of the essential services for any company.
If you are good with words and texts and know how to entertain people, then this is a service business. You can create just about anything: scripts for videos and social media posts, Instagram stories, blogs, products, and many more.
Business Consulting Services
Many people want to start their own business - but not many know how to do it successfully. Sometimes, you just do not have enough knowledge about the industry or can be missing that one essential piece of the puzzle.
A business consultant will help you get back on your feet or create a strategy from the ground. They will explain the statistics, provide data, and help you build marketing and lead-generation campaigns. A professional will help you avoid potential mistakes that lead almost half of all businesses to fail.
Graphic Design Services
Website is a part of almost any business. This is the main place to place an order and look through the list of products of services the brand can offer. If your website is created poorly, it is most likely a potential customer will leave it in the first 10 seconds.
This is where graphic design service businesses come in. Their goal is to create an organized and nicely looking website to reflect the company's vision. Such a business is an amazing choice for more artistic people who can also learn the technical part of this job.
Beauty Services
Such salons can have a very broad spectrum of services, or you can focus on only one thing; it's all up to you. It is better to have some experience in the area since people tend to choose a master based on previous work and customer reviews.
Check what is available in your area and what is missing. Maybe there is no massage salon for several miles, or every manicure salon does not meet the expectations. Do some research, and if this industry is your passion - go for it!
Conclusion
Service businesses are all around us, whether we notice them or not. Some are better; the other ones are still searching for their customers.
This industry includes a broad spectrum of services to provide. Almost everyone who has a passion, a hobby, or something they are good at can start making a profit from their hard labor.
If you know that you can be better at something than 70% of people, maybe this is something you were meant to do. Starting a service business usually does not take too much time or money, so why wait?
Unlock the potential of your start-up with Bitrix24
Enhance your team's productivity and collaboration with Bitrix24's all-in-one platform for service businesses. Create stunning website with Bitrix24 and start your journey to success.
Try Now
