Are you service-orientated? Do you want a business which requires a low investment but could give you great returns? Then a service-based business may be right up your alley. Today, we are going to look at the four key points for running a successful service business and then consider some options you could start today.
Four keys to running a successful service business
Like running a product-based business, there are certain aspects which you need to consider if you want to run successful service business. They are
Unlike with product-based companies, service-based companies are selling an experience. When designing your service, you need to consider which attributes are important to the customers you serve. You could consider the following attributes when designing your service offering:
- Speed: how fast or slow will it take to do the service?
- Efficiency: how well can you do the service in a certain price range and quality?
- Friendliness: How friendly and attentive are you and your employees?
- Detail-orientated: Can you make sure there are few to no errors in the service you offer
- Scope of service: What services would you offer? Will it be limited or broad?
When choosing the attributes to excel in, you need to ensure they align with attributes which are important to your niche group of customers. If the attribute is unimportant to your customer then you need not consider it or pay very little attention to it. You need to know what your client believes excellent service to be.
When you offer a service, you need people to pay you for it. It is important to highlight the concrete value your customers will receive by using your service offering. You should also price it so that it is palatable to your customer. In the service industry, time is money and therefore it is important that you charge industry standard prices for the work you do.
Because service-based companies rely heavily on face-to-face interaction, it is important to have an excellent human resource department. You need to ensure you hire and onboard your employees well and that they have the skills for the position you have employed them for. When you are making a choice between two candidates and they only differ on attitude then you should go with the one who has the best attitude. Some people consider what a person’s rest face looks like when they evaluate who to hire. For the service industry, you would want someone who looks approachable when they are relaxed.
Sometimes customers play a role in the production of the service. They may need to give you a brief or they may need to participate in some other way when it comes to your service. Because of this, you need to have controls in place to ensure that customers behave in a way which is beneficial to both parties. You could either use discounts or late fees to encourage good behaviour or you could name and shame them. Whichever way you use to manage your customers, it is important that it is in line with your overall service attributes that you promote as essential in your business.
By getting these four aspects working well in your business, you will be able to run a successful business but which are the best service businesses to start today?
Best service businesses to start today
1. Event planner
Do you enjoy throwing parties for your friends and family? Are you detail-orientated? Then this could be the business for you. You could plan children’s parties, milestone parties, weddings, product launches or pet birthday parties to name a few.
2. Virtual assistant
Are you organised and enjoy planning things? Virtual assistants take care of their customers administrative tasks. They usually work from remote locations.
Have you spent some time working in business or playing sport? Do you like to encourage and build others up while they pursue their dreams? Then coaching may be the next business for you.
4. Elder caregiver
Do you have compassion for the elderly? Do you like to help others? By taking care of the elderly, you may be able to lighten someone’s burden who can’t find another way to take care of their parents. You can offer them companionship and offer to do errands for them.
Do you have great maths skills? Or are your language skills on point? Maybe you play an instrument? Depending where you skills are you could teach someone about them.
These are a few service businesses you could start with very little capital. You can learn about other service business options here.
Proudly brought to you by the NSBC