The home services sector is booming like never before. As a result, it is attracting hundreds of new players every day; however, tragically, many fail within a short time because the owners did not set them up the right way. A brief guide to setting up your first home services business venture and how to make it succeed:
Get a Fix on the Business Idea
The home services sector is vast and entrepreneurs have a lot to choose from. Typical examples of home services in high demand include deep house cleaning, garden and landscaping, interior décor, handyman services, home inspection, pet sitting and grooming, packing and moving, pest control, HVAC repairs, local and home services SEO, etc. The point is to identify potential demand for a service in your service area. You must also find out the kind of competition you will be up against because if there are already many players entrenched, it may not be a good idea to occupy the same niche.
Craft a Business Plan
Without a business plan in hand, you might as well get ready for failure from Day One. A business plan will help you know what your objectives are, how you will achieve them, and measure the extent of your success. When you put a business plan in writing, you will be clear about the purpose, operational details, management, finances, and revenue projections. Without a business plan, you will not be able to grow your business beyond a point. According to Forbes, writing out a business plan helps to expose its weaknesses.
Organize the Finances
Even though setting up a home services business does not generally require a lot of money, you may, however, need to set up an office, buy office furniture and equipment, and tools and equipment. You may also need to buy a vehicle, pay for the running expenses and maintenance, and spend on advertising and participating in exhibitions and trade shows. Take the help of an accountant to make a cash flow statement to find out the extent of funds you need to operate your business.
Decide Your Pricing
Setting the prices for your home services can be tricky. You need to set them at a level that will enable you to make decent profits, but at the same time, you need to be competitive. With time, as you establish your brand and a reputation or expertise, you may be able to charge a premium; however, you must appreciate that most of your customers will be price sensitive. Depending on the home service, you may need to develop a pricing plan with hourly rates and include package pricing that takes the guesswork out for customers.
In addition to complying with the registration and other applicable state and local laws required for setting up a business entity, the most challenging task for home service entrepreneurs is to promote their businesses to their target audiences. Creating a website, implementing SEO, content marketing, blog posts, email marketing, social media marketing, etc., are some of the things you will need to actively engage in.