If you’re interested in starting your own business, a service business can be a great option. A service business performs a set of services for their customers, and — depending on the service — can be run locally or fully online.
Curious how to start a service business? We’ve got an easy-to-follow six-step guide to getting your own service business completely up and running, no matter your current budget.
Follow along with our steps below, then find yourself with a ready-to-launch service business at the end.
Let’s get started!
What Is a Service Business?
A service business is a type of business that offers different services to its customers. Some examples of popular service businesses include:
- Cleaning
- Landscaping
- Pet sitting
- Graphic design
- Website design
- Digital marketing
Essentially, your business is exchanging a service, like a house cleaning or a logo design, for the price you value your services at. So it may be $250 for a full house cleaning or $1,500 for a complete logo and brand design package.
Service businesses can be great ways to make money from a skill set you have or want to learn. And they can be started from nothing, unlike a business that sells physical products.
Why You Should Start a Service Business
Why is starting a service business a good idea? Well, if you’re wanting to start your own business or side hustle and you have a specialized skill — or at least the desire or ability to learn one — a service-based business is the perfect way to do so.
Here are a few benefits that starting a service business can offer you:
- Create your own schedule
- Make money performing a service you’re skilled at
- Start with no startup capital or funds needed
- No need to worry about managing inventory
- Offer flexible services to appeal to more customers
- Get better at your skill to get faster at performing your service (i.e., make more money in less time)
Sound like something you’re interested in? Learn how to build your own service-based business in the next section.
How to Start a Service Business
Starting a service business doesn’t have to feel like a daunting, overwhelming task. We’ve got six easy steps for getting started with your new business that you can easily take care of in a weekend — or even today, if you’re ready!
Let’s walk through each one so you can get ready to launch.
Step #1: Choose a Service Business Idea
Your first step is to choose the type of service business you want to start. You need to finalize a business idea before you move on to the next steps so that you don’t waste time working on an idea that you don’t end up bringing to fruition.
Here are a few tips to help you find the right idea:
- Think of something you’re good at (i.e., graphic design, writing)
- Think of something you enjoy doing (i.e., physical training, gardening)
- Consider what you have the tools to do (i.e., landscaping, photography)
- Or, think of something you wouldn’t mind doing (i.e., cleaning, fixing things)
From there, it should be easy to figure out the best service business idea to get started with.
Step #2: Create a Business Plan
Once you’ve selected your idea, it’s time to create a business plan. Your business plan helps you walk through all of the necessary steps needed to get a new business up and running.
You’ll cover sections like:
- Mission statement: The “why” behind your business
- Business idea: What your business will be doing to make money
- Business goals: What you hope to achieve with your business
- Service(s): Which service(s) you plan to offer to your customers
- Market research: Look around (either online or locally, depending on your business idea) to see the competitive landscape
- Financial plan: How your business will make money, and if it needs startup funds (plus where you’ll aim to get them)
- Marketing plan: How you’ll find new customers and grow your business
Having all of the above information documented can help you hit the ground running with your new business.
Step #3: Pick a Business Name
Even more so than choosing the right service business idea, this might be the hardest step — choosing your business name.
Finding the right business name is important because it helps you build a strong brand, but it’s also important for building out your website (a step we’ll take later on). You need a good domain name, and it’s always a good idea to match it to your business name if possible.
Here are a few tips for picking the right business name:
- Make sure it’s easy to spell and pronounce
- Consider using your industry/service within the name
- Make it location specific
- Double-check that it’s unique
- Choose a name that’s catchy
If you’re struggling, take advantage of our free business name generator to gather inspiration. Choose one that our tool creates for you, or at least use it as a good starting point for your own creativity.
Step #4: Register Your Business
This is the step that’s going to take the longest, so get on it as soon as you can. Registering your business involves choosing the right business structure and filling out business license paperwork with your country and/or state.
Registering your business gives you an Employer Identification Number (EIN) that you’ll use for tax purposes (and is required if you plan to hire people), lets you open business bank accounts or get small business loans, and gives you the legitimacy you need to run your business.
The rules are different for each country, state, and even city, so make sure you look up and file all of the right paperwork. Hiring a small business lawyer can be a great option for getting this done right.
Step #5: Set Your Prices
Next, you’ll need to determine how you’ll price each of your services. You need to find the right price point so that (a) you’re not working for pennies and (b) you’re not overcharging so much that no one will work with you.
Look around to see what your competitors are charging. Decide if you want to charge by the hour or charge per service. Then, set your prices and test the waters to see how your customers respond.
Step #6: Build Your Service Business Website
Finally, it’s almost time to launch. That means you need to build a service business website so that anyone interested in your services can easily find you online to learn more about your business and what you offer — as well as what you charge and how to get in touch with you.
Your service business website should have:
- A home page
- An about page
- A services page (plus you might want to add subpages to explain each service more in-depth)
- A contact page
- A blog
And while that may sound like a lot of work, you can get them created in just minutes with an AI website builder like Durable. Input the type of business you’re building and watch as your brand new website appears before your eyes, copy included.
Make any changes you want — copy, photos, etc. — and launch your website so you can get started with your brand new service business.
How to Market Your Service Business
Now that your business is ready to launch, it’s time to market your services so you can bring in customers.
A few ways to do this include:
- Creating social media profiles for your new business
- Sharing photos and videos on social media
- Promoting your services in local community groups online or in-person bulletin boards
- Building an email newsletter
- Creating a word-of-mouth or referral program
- Writing educational blog content about your industry
- Asking your network to share your business with their networks
Once you start generating business, it should be easier and easier to increase your customer base, helping you grow your business and make even more money.
Service Business Resources
Not sure what type of service business to create? Here are some of our business starter guides to help you figure it out — and start the exact steps needed for your specific business.
- How to Start a Cleaning Business
- How to Start a Digital Marketing Agency
- How to Start a Consulting Business
- How to Start a Graphic Design Business
- How to Start a Handyman Business
- How to Start a Personal Training Business
- How to Start a Photography Business
- How to Start a Tutoring Business
- How to Start a Landscaping Business
Start Your Own Service Business Today
Now that you know how to start a service business, there’s no time to waste. Choose the right business for your skills, create a business plan, and get to work.
Don’t forget that you’ll need a high-quality, easy-to-navigate service business website. Durable’s AI website builder can get you set up in less than two minutes so you can start marketing your business and generating customers today.
