If you are considering starting a service business there are many things that you will need to get sorted from the start. Staring a service business can have many benefits in terms of the need for less funding, but there are also many hardships that new business owners can face. If you do not set up your service properly from the start then you may end up with a business that is not only not successful. To help you make your dream of owning a service business a reality we have put together a list of the top 4 tips that will help you build an effective business from the start.
- Make sure you have a passion for what you are doing
With service businesses, you are not selling a product. Instead, you are selling your own hours and skills. As such, especially when you are first starting out there are many days when you will need to spend a long hour working. What’s more, as you try to create a credible and well-known business you will undoubtedly face some brutal criticism. When you are overworked having more criticism come in can be overwhelming. Before you decide to start your business make sure that you are truly set on your decision and are ready to face the criticism, the financial insecurity, and the long hours.
- Find the market gap or where your service business fits into the existing market
There are many people offering their services. This means that your business will either need to be something completely unique that you are introducing to fill a market gap, or you will need to get access to a specific part of the already existing market. Doing your market research ahead of time and ensuring that you know where your business fits will help you target the right customers and clientele from the start.
- Make a business plan
For some reason, many people start service businesses without having a business plan in place. In part, this is because a service business does not always need a lot of pre-planning in the way a product business would. However, while the business plan may not be essential in step 1 it will quickly become needed once you notice that without one you will be halting your company growth. You need to know your steps and goals from the start if you want to be able to concretely work on them as you are building your business.
- Decide on your company structure
This is the part of starting a business that most people will get legal advice on. An accountant may also be able to assist you with deciding whether the best option for you is starting a limited company, a partnership, or being a sole trader. This decision is crucial to the success of your business, as it will set the legal framework in which your business is working as well as your taxation regime.
More info here on starting a business and the main problems that SMEs face.