If you possess skills in a particular service industry, you have an opportunity to earn a profit doing what you do best. Deemed essential businesses in many cases, the need for talented service professionals in areas like HVAC, plumbing, car repair, and electrical continues to maintain consistent growth.
Service-based businesses do not operate from a brick-and-mortar location. Rather, they are typically run from home or on the road and utilize a different business approach from retail or food service companies. Launching a service-based business has its challenges, but the benefits you’ll enjoy will make your time, effort and money worth the investment. Here are five major benefits of service-based businesses.
1. Lower overhead expenses
Traditional brick-and-mortar businesses have the burden of rent (or mortgages) and all that space requires. As a service-based business owner, this expense in typically avoidable. Overhead costs are much less when you have the ability to operate your company from home or in a mobile environment such as a service vehicle advertising your franchise’s name. This type of small, agile business model allows you to spend less on startup costs and overhead, so you can maximize profits.
2. Customized work schedule
If you choose a service-based franchise business model, your skills are the product. That means you decide when and where customers have access to your services. You get to choose which hours of the day work best for your personal schedule and how far you’re willing to travel, if at all, to meet with clients. As the owner, you don’t have to answer to anyone but yourself, so you can achieve great work-life balance.
3. Serve a stable market
Companies that sell physical products are often looking for the next best thing. Service-based businesses are completely different in that they usually aim to fulfill a need that already exists. Modern society still needs a plumber, electrician, exterminator, landscaper—the list goes on. Better yet, the need for these services is usually stable, providing you consistent revenue. Brainstorm industries that will always stay relevant yet are in short supply. You might just become the go-to expert your town has been looking for all this time!
4. Customer feedback in real time
New products take months to develop or curate. Traditional business owners have to conduct customer research and figure out how to best serve their needs. However, with a service-based business, you have the luxury of speaking face-to-face with clients and immediately applying their feedback to your work. Feedback in real time allows you to instantly adjust the services you offer, which leads to faster problem solving and higher customer satisfaction.
5. Make money doing what you love
As the owner of a service-based business, you’re putting life-long skills to good use. The whole business revolves around your passions or, at the very least, a field in which you possess natural talent. Service-based business owners love what they do, and whatever profit they gain as a result is almost an added bonus. What makes a service-based business successful is the desire to make a lasting difference in your customers’ quality of life.
Service-based businesses have unique funding needs. Tenet Financial Group. We connect aspiring business owners with the startup funding they need to launch traditional and service-based businesses. Reach out to speak with our friendly associates today!