The service sector contributes a whopping 67% to the global GDP, which shows its dominance and significant potential for entrepreneurs in this space.
The steady growth of service-based businesses makes them even more attractive to entrepreneurs who want to start a new venture.
With minimal start-up costs, increasing demand, and infinite possibilities to scale, starting a service business today is a great option.
I have been in this field for a few years now, and I can vouch for the immense growth opportunities this sector offers.
In this blog, I’ll tell you about the best service businesses, guide you through selecting the right one, and arm you with actionable insights to hit the ground running.
TL;DR – Best Service Business Ideas
Here is a quick overview of some of the best service business ideas that you can consider:
- Virtual Assistance
- Home Cleaning Services
- Affiliate Marketing
- Personal Fitness Training
- Digital Marketing Agency
- Pet Care Services
- Event Planning
- Professional Coaching
- Financial-Based Services
Let’s understand why these service businesses shine in today’s economy.
Work with me to figure out the perfect service business to start, turn your skills into a successful venture, and scale your business with proven systems.
What is a Service-Based Business?
A service-based business is one in which you offer your skills to customers through expertise, labor, or time, unlike a product-based business in which a tangible product is needed to fulfill a customer’s needs.
Services-based businesses don’t rely on physical inventory, making them more flexible and cost-effective. Take, for example, freelance graphic design or personal care services.
Reasons to Start a Service Business
People want to live a convenient life and need a professional to help them in areas they lack.
They are willing to pay for convenience. Whether it’s cleaning their horse, managing their finances, or fixing their tech, they want professionals to step in where they lack the time, skills, or energy.
Service business will be profitable for a lot of reasons:
- People value convenience, and outsourcing tasks makes life easier.
- Not everyone knows how to file taxes or plan events, so your expertise will be in demand.
- Most service businesses don’t need significant investments, just skills and tools.
- Services like cleaning, coaching, or bookkeeping often get repeat clients.
- Service businesses can adapt to trends and pivot when needed.
The good news is that if you can solve a problem or save someone time, you already have the foundation for a successful service business.
9 Best Service Businesses to Start
Start a business that allows you to leverage your skills, expertise, and passion to solve real problems for people while building a steady income.
Whether you’re working solo or planning to scale, these options offer flexibility, demand, and the ability to make a meaningful impact.
1. Virtual Assistance
Now that everything is moving to digital, virtual assistance is popular for new businesses.
As a virtual assistant, you can offer a wide range of administrative, creative, and technical support from home. Any business that wants to streamline its operations requires this service.
The general work of a virtual assistant for entrepreneurs includes managing emails, arranging meetings and travel, making reservations, or just helping manage their social media accounts.
You can begin this venture with a laptop and a reliable internet connection. And the benefit is that you can choose your clients and what services you want to offer based on your skills.
2. Home Cleaning Services
People live busy lives, whether at home or at work, which is why they struggle to manage home cleaning themselves.
This makes home cleaning services a business opportunity that will have consistent demand and is simple to start. The market for this service is expected to reach USD 555.44 billion by 2030.
Also, due to health concerns, there is a growing need to maintain cleanliness and hygiene, and people are now more willing to invest in this service to live healthy lives.
3. Affiliate Marketing
If you already have a blog, you can make money by promoting other people’s businesses on your site.
Affiliate marketing is when a company pays a commission to third-party publishers on a conversion basis. About 80% of companies need a good affiliate marketing program.
You can start this as a source of passive income or take it up a notch and connect with other vetted affiliates to grow your agency.
The industry is expected to reach USD 36.9 billion by 2030.
4. Personal Fitness Training
Like having clean surroundings to live a healthy life, individuals want to become healthy from within for which they need a fitness program.
People want to get healthy, lose weight, or just need a professional to recover from an injury.
As a personal fitness trainer, your job is to customize fitness regimens for your clients based on their needs and lead training sessions.
5. Digital Marketing Agency
Pamphlets and flyers are old-school ways to market a product. Now, all successful businesses have a social media presence and use online content to reach their target customers.
Most business owners might not have the time or skill to access these platforms. A digital marketing agency can be a blessing for such businesses.
You can offer SEO services, graphic design, creative writing, and social media management as a digital marketing agency.
It is relatively cheaper; you need the right team to do the work. You can also work independently and do less work, but the tasks become easier with a team.
6. Pet Care Services
Pets have been companions to humans for generations, and now that humans have more demanding jobs, they have very little time to take care of pets.
Humans treasure their pets and want them to be healthy, which is where your pet care services come in.
Pet care services include grooming, feeding, dog walking, pet sitting, and general care. You can select which services you offer.
Remember, this job is physically demanding and requires a lot of stamina. To get into this business, you must also learn about pet care.
With 82 million U.S. households owning a pet, this business is unlikely to run out of demand.
7. Event Planning
Planning an event and arranging everything from decor to catering can be challenging. That’s where event planners come in handy.
This business venture has a lot of potential, and you can ace it if you are a skilled communicator, detail-oriented, and good at organizing and time management.
Another positive aspect of this service is that you can choose from many niches, such as planning birthday parties, conferences, weddings, and other celebrations.
With a low investment and your talent, you can start this business without any certification.
8. Professional Coaching
Professional coaching can include anything from life, career, and business coaching.
In the coaching service business, your product is your expertise in helping people improve their lives. You’ll aid your client’s development or enable them to grow their businesses.
This service requires professional training. You must learn various techniques for helping people and ways to stimulate their minds to make positive changes.
9. Financial-Based Services
Many small and large businesses seek assistance with their finances, whether navigating tax season, improving credit scores, or planning for future investments. Financial-based services come into play here.
Financial services include monthly bookkeeping, debt collection, tax preparation, and financial consulting. You can offer services like accounting, estate planning, and financial strategy consulting to help them make informed decisions.
You must stay up-to-date on regulations and industry trends to provide the best service possible.
Choosing the Right Service Business for You
The right business for you will be the one that aligns with your strengths and opportunities along with the needs of the market.
Here’s how you can ensure you’re making the right choice:
- Skills and Interests: Think about what you’re good at and what you enjoy doing. Tap into your natural talent or professional expertise.
- Market Demand: You cannot sell your skills without a customer base. Research your target audience, including who they are, what they need, and how you can solve their problems. Look for services that are consistently in demand or emerging trends that are gaining traction.
- Competition: Identify the gap in your competitors’ services or areas where you can do things differently. This is your unique value proposition, which will encourage clients to choose you over your competitors.
- Scalability: Think about where your business could go in the future. Consider services that can be scaled through hiring employees, outsourcing tasks, or using technology.
Landing on the right services is about finding the balance between your skills and passion and what people are willing to pay for. Take your time, plan strategically, and choose the exciting path.
How to Start a Service Business
The requirements to start a service business depend on the type of services you want to offer. To make the process smoother, let’s break it down into actionable steps.
- Identify Your Niche: Choose a service you’re passionate about and skilled at, ensuring there’s market demand. Research your target audience—survey friends, family, or community members to understand their needs. Study competitors through a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to identify gaps you can fill.
- Create a Business Plan: Outline your goals, target audience, marketing strategy, financial projections, and operational needs. This document will guide your decisions and attract potential investors or lenders.
- Organize Your Finances: While service businesses typically have low startup costs, it’s essential to plan for expenses like tools, equipment, and marketing. Create a list of necessary items and calculate costs for cleaning supplies, consulting tools, or software subscriptions. Decide whether to bootstrap, apply for a loan, or find an investor.
- Register Your Business: Make your business official by registering it and obtaining the necessary licenses and permits. In the U.S., this includes an Employer Identification Number (EIN) for tax purposes. Registration allows you to open a business bank account, access business credit cards, and secure small business loans.
- Build an Online Presence: Choose a user-friendly website builder with customizable templates and tools for scheduling, payments, and invoicing. Invest in a domain name and create a professional logo to establish your brand identity. Social media is equally important—use platforms like Instagram, Facebook, or LinkedIn to connect with your audience
- Create a Pricing Plan: Decide how much you will charge. Options include:
- Hourly Rates: Common for consulting or coaching services.
- Package Pricing: Bundle complementary services for convenience.
- Value-Based Pricing: Charge based on the perceived value of your expertise.
- Start with competitive rates and adjust as you gain experience and credibility. Offering introductory discounts can help attract your first clients.
- Promote Your Business: It’s important to promote your service business. Start by connecting with potential clients through email and social media. Share tips, behind-the-scenes updates, and success stories to build trust.
While you’re starting your business, make sure to follow the principles of entrepreneurship.
Challenges of Starting a Service-Based Business
No business can start without minor hiccups! So, I am listing a few challenges so that you can stay alert and overcome these challenges:
- Finding Clients: As a new business owner, you won’t have a client base. The real challenge is gaining trust and landing your first few clients.
- Time Management: While you may or may not work independently, you must still own up to the operational part. Juggling between client work, marketing, and admin tasks can be difficult.
- Standing Out: While you may take a different approach to your job, there is a big market out there, and carving a niche and staying unique takes effort.
- Inconsistent Income: New businesses face fluctuating workflows, making it difficult to maintain a steady earning.
- Scaling: Growing your business often means finding the right people or tools to help without losing quality.
- Burnout: Service businesses demand a lot of energy; without boundaries, it’s easy to overwork yourself.
Build Your Service Business with My Methods
Over the years, I’ve helped countless entrepreneurs navigate the challenges of launching and scaling service-based businesses. From outsourcing to automation, my strategies are designed to help you streamline your operations, save time, and focus on growth.
- Leverage Technology: Use tools like scheduling apps and automated invoicing to save time and keep things running smoothly.
- Network Smartly: Join industry groups and connect with like-minded professionals—opportunities often come from the right relationships.
- Focus on Reviews: Happy clients are your best marketers. Positive testimonials build trust and attract more customers.
- Offer Introductory Discounts: Get clients in the door with special offers that showcase your value from day one.
With my experience scaling my business FreeUp to $12M ARR, I know what it takes to streamline, outsource, and grow sustainably.
Read about my serial entrepreneurship journey!
Reach out to me, and let’s build a system that will help you start and scale your business without sacrificing your time or sanity.
Frequently Asked Questions (FAQs)
Here are some commonly asked questions.
Which Service Businesses Have Low Startup Costs?
Service businesses like freelance writing, social media management, virtual assistance, tutoring, or consulting typically have low startup costs. Many only require basic tools like a laptop, internet connection, and software to get started.
Can I Start a Service Business While Working a Full-Time Job?
Absolutely! Many entrepreneurs start their service businesses as side hustles. Focus on manageable hours, clear boundaries, and time-efficient services. As your business grows, you can think about transitioning into it full-time.
What Licenses Are Needed to Start a Service Business?
Licensing requirements vary by location and industry. Here are the common licenses and permits required:
- General business license
- Employer identification number (EIN) if you are hiring employees.
- Professional licenses and certifications for skilled services like fitness coach and accounting.
- Surety bond for services like cleaning or financial advising
How Do I Attract Clients to My Service Business?
Attracting clients starts with building visibility and trust. Build an online presence with a professional website and social media. Leverage referrals, testimonials, and platforms like Google My Business. Consider offering introductory discounts or free consultations to draw in new clients.
Conclusion
Starting a service business offers immense potential with low startup costs and the flexibility to scale. While challenges like client acquisition and time management exist, the right strategies and a focus on solving real problems will set you up for success.
Choose a business that aligns with your skills, tap into market demand, and leverage technology to streamline operations. With persistence and the right approach, you’ll be well on your way to building a successful service-based business.
If you are serious about starting your business, reach out to me and let’s work together to build it!