TIPS FOR SUCCESS:
Think you're ready to launch? Here are a few tips to help you out when you present your new business to the world.
Make sure there's a place in the market for your service. With few exceptions, there are probably a lot of other service businesses doing something similar to what you do. What makes you different from your competitors, and how will that influence your marketing efforts?
"Conduct a thorough market assessment to determine your audience's readiness for [your services]," said Toffer Grant, founder and CEO of PEX Card, a prepaid expense card for businesses. "If you are copying an existing service, you can build a case for why yours is better and create an educational program about your benefits. That's a whole different ballgame than a service-based business that has created a new category, where its key messaging will entail education about a problem it is solving."
Get your finances in order. Just because a service business has lower overhead costs doesn't mean you won't have any at all. Baker-King urged potential entrepreneurs to consider their cash flow before starting up and ensuring that they have enough to live on with all their anticipated expenses, especially if they're leaving a full-time job.
"Most business plans I see are 'survive' cash flow analyses," Baker-King said. "You want 'thrive' cash flow. You might have the best idea on the planet, but if you don't have money to invest to get off the ground, money coming in to fund the business and enough from ... savings or another income source to pay the family bills, then you might need to revisit your business plan."
Accept outside help so you can grow. Because of the nature of some service businesses, some entrepreneurs feel like they can run it as a one-person operation. You might be capable of handling every business task yourself, such as invoicing, accounting, marketing, etc., but outsourcing certain administrative tasks can free you up to really work on growing your business and providing the best work you can.
Hired staff members can also help you offer more consistent service to your clients and give you a professional edge, Robinson said. Until recently, she only operated as a team of freelance subcontractors instead of employees. Now that she has a full-time staff, she says she can decrease her risk and increase her confidence as a business owner.
Stay focused on quality. Service businesses are very easy to scale, but you won't earn any new opportunities if your current client base isn't fully satisfied. Petitti said the key to success in the service industry is ensuring quality, especially as you grow and take on more business
Make sure there's a place in the market for your service. With few exceptions, there are probably a lot of other service businesses doing something similar to what you do. What makes you different from your competitors, and how will that influence your marketing efforts?
"Conduct a thorough market assessment to determine your audience's readiness for [your services]," said Toffer Grant, founder and CEO of PEX Card, a prepaid expense card for businesses. "If you are copying an existing service, you can build a case for why yours is better and create an educational program about your benefits. That's a whole different ballgame than a service-based business that has created a new category, where its key messaging will entail education about a problem it is solving."
Get your finances in order. Just because a service business has lower overhead costs doesn't mean you won't have any at all. Baker-King urged potential entrepreneurs to consider their cash flow before starting up and ensuring that they have enough to live on with all their anticipated expenses, especially if they're leaving a full-time job.
"Most business plans I see are 'survive' cash flow analyses," Baker-King said. "You want 'thrive' cash flow. You might have the best idea on the planet, but if you don't have money to invest to get off the ground, money coming in to fund the business and enough from ... savings or another income source to pay the family bills, then you might need to revisit your business plan."
Accept outside help so you can grow. Because of the nature of some service businesses, some entrepreneurs feel like they can run it as a one-person operation. You might be capable of handling every business task yourself, such as invoicing, accounting, marketing, etc., but outsourcing certain administrative tasks can free you up to really work on growing your business and providing the best work you can.
Hired staff members can also help you offer more consistent service to your clients and give you a professional edge, Robinson said. Until recently, she only operated as a team of freelance subcontractors instead of employees. Now that she has a full-time staff, she says she can decrease her risk and increase her confidence as a business owner.
Stay focused on quality. Service businesses are very easy to scale, but you won't earn any new opportunities if your current client base isn't fully satisfied. Petitti said the key to success in the service industry is ensuring quality, especially as you grow and take on more business
