Startup Guide: How to Start a Home Service Business

Starting a home service business can be an adventure. The idea is that you get to work from home and let the good times roll. And you do that by providing services that customers need and want. If you’re thinking about starting a home service business, you’ve come to the right place; we’ve got everything you need here — tips and advice for getting started, ideas for how to grow your business, and critical elements to consider when growing your startup. 

Here, in this article, we have outlined the 5  mistakes to avoid while setting up your home-services business and actionable tips and strategies to run a successful business. 

Let’s get started. 

Mistakes To Avoid When Starting a Home Business 

When you are about to start a home business, there are many things that you need to consider first. However, there are also some mistakes that you can avoid if possible. Here are five mistakes most people make when setting up their home business. 

1. Not Choosing the Right Location

Do you want to run your home services business from home? Do you have a spare bedroom that could be used as an office? Or do you need more space than your house provides? Deciding where to start your home services business is one of the most critical steps in starting any new venture because it determines where all your resources — time and money — go. If you choose to run your home business from another location, ensure that the location is conducive to running the business and living in it. 

2. Not Considering the Cost of Running Your Business

You’ll need to consider the cost of running your business, including time, money, and resources. If you aren’t prepared for this expense up front, you may lose money due to not taking in enough income from your business. You should also consider the cost of hiring employees and paying for insurance and other related expenses.

3. Not Creating a Product or Service That Fits Your Market and Audience Needs

The best way to ensure that your product or service will be successful is to create something unique and valuable and solve an actual problem within the market. 

For example, you’re starting a pool cleaning business. You need to understand the market’s needs and their current pain points. Failing to understand them will lead to a rocky start for your business. 

4. Failing to Monitor Progress and Adjust

You can’t keep track of every single detail of your business, but you need to know how things are going. This means keeping track of how many clients you have, how much money you’ve made, and how many hours you’ve put in. You also need to know how much time it takes on average for each client to complete their project. If it takes 20 hours for a client to complete their project, you need to factor that into your schedule so that you don’t end up working all day long.

5. Ignoring Technology

Technology is key when running a home business, but it can sometimes be challenging. For example, if you want to set reminders for yourself or your employees, ensure they are set up correctly in the apps you use. It may seem like no big deal, but failing to set reminders correctly could hurt your productivity over time!

Now, let’s look at actionable tips and strategies on how to start and run a successful home service business.

How to Start Home Service Business

Step 1: Define Your Idea

Before starting a home service business, you must know exactly what service you will provide. People can offer hundreds of different home services, but only a handful really stand out from the crowd.

Start by identifying which type of home service you want — cleaning, handyman work, or something else — and then refine your idea until you have a clear vision of what the finished product will look like. You should also consider your target audience and how much money they make each month. If this information isn’t available, consider working with an industry expert who can help guide you through the process.

Step 2: Draft a Business Plan

The second step is to draft a business plan outlining your goals, market research, and financial projections. The business plan will help you keep track of your progress and provide a framework for marketing and planning.

Start with a high-level outline of the business. Create notes about what you do in your current job or volunteer position. This will help you develop a list of skills that can translate into client services.

For example, if you’re currently a nanny or caregiver for senior citizens, take note of the services most requested by your clientele (meals on wheels, housekeeping, pet sitting). You can also identify specific skills needed for each aspect of the job — cooking or cleaning, for instance — and include examples of previous work experience in these areas.

Once you have identified several areas where you can offer services, as well as some examples of how you’ve provided those services in the past, it’s time to start drafting a business plan.

Step 3: Have a Budget

You should know how much you can afford to invest in your home service business. Suppose it’s more than you can spare. In that case, you need to figure out what other sources of income are available before starting a home service business. For example, if you have a full-time job and don’t want to quit because you don’t think you will be able to make enough money from home services,try finding another part-time job that will allow you to build up your savings slowly.

If your budget is limited, start by deciding on the length of time you’re willing to spend working for yourself. This will determine what kinds of services you offer and at what price point; for example, if someone is paying $100 per hour for cleaning services (and not just once), then they can pay more than someone who needs weekly or biweekly cleaning services because they are willing to pay more for those services.

Step 4: Determine Your Legal Business Structure

The best way to start a home business is to find out what legal structure will work for you. Understanding the difference between sole proprietorships, partnerships, and corporations is essential.

If your house is your storefront where you sell items on consignment, as in some cases, then setting up a sole proprietorship is the best option. 

Suppose you want to run a home-based business that has employees and receives payments from customers. In that case, forming a corporation might be right for you. However, corporations require several tax filings each year and can be expensive if you do not make enough money or pay enough taxes.

Step 5: Obtain the Necessary Licenses

To start a home service business, you must first obtain the necessary licenses and permits. This is usually done through the local city or county government. However, federal agencies also require a permit before starting a home service business. For example, if you want to offer cleaning or lawn care services, you must apply for an appropriate business license from the local government. 

Additionally, you will need to register your home service business with your city or county government and may also need to apply for other permits and licenses from other agencies such as fire departments or other health departments. The process varies depending on where you live and what type of business you plan on starting.

Step 6: Purchase an Insurance Policy

To protect your business, you should purchase liability insurance. This protects you from being held legally responsible for injuries or damages on the job. It also protects clients from being held legally liable for accidents during their home visits.

You might want to purchase both property and liability insurance for your business. Property insurance pays for damage to your home or other buildings if someone outside the structure causes it. Liability insurance pays for any damages inside your home or on the premises. 

Step 7: Build Your Team

Once you’re ready to start your home service business, it’s time to build your team. This is a long process that can take months or even years, but it’s worth it in the end. 

The first step is finding the right people to work with. Your ideal team will include people who are passionate about what you do and have experience doing it themselves. The next step is getting them excited about the company, too — if they aren’t already.

Once you have your ideal team in place, you’ll need to figure out how much money you’ll need for payroll and other expenses related to running a business like this one. The best way to do this is by talking with friends and family members who are already established in their businesses and other professionals in similar industries (like lawyers or accountants). 

Step 8: Choose Your Vendors

Now that you’ve created a business plan and secured funding, it’s time to find your first vendors.

You want to select vendors who can supply the products you need and those compatible with the type of work you’ll do. You may have good luck in one industry or two, but if you want a diverse business, make sure that your vendors offer the right products. 

Step 9: Marketing 

Marketing is arguably the most important part of your business, and keeping an eye on your marketing efforts is essential.

It Can Be Done in a Variety of Ways, Such As:

Networking with other businesses: 

Getting involved in the local community and connecting with other businesses in your area is essential. This is also a great way to find new customers and generate referrals.

Advertising on social media platforms like Facebook and Instagram: Advertising on social media platforms like Facebook, Instagram, and TikTok can be one of the most effective ways to get your brand out there. You can use these platforms to post content related to your business, engage with potential customers, and even sell products directly from your profile page!

Guest blogging for other companies or websites:

Guest blogging is when you write articles for other websites about what you do that are relevant to their audience. For example, if you’re a graphic designer, you could write an article about how best practices are changing for designers! This is also a great way for new businesses to gain exposure without spending money themselves.

You can also outsource marketing and advertising for your home services to a professional agency. They will curate tailored strategies to drive measurable results. 

An Additional Tip- Invest in Field Service Management Software 

If you have a home service business, you must have a solid field service management system. This software can track your appointments/ service requests, customers, and more. You can also generate invoices instantly and send them to clients after they place an order with you.

In addition to that, this software will help you save time and money by eliminating unnecessary steps from your daily routine.

NetworkON, a leading field service management software, offers a comprehensive solution for all your delivery needs. NetworkON helps you manage, track and analyze your service request process. It’s easy to use and has a built-in reporting system that makes it easy to see how much time each employee spent on each task. 

With NetworkON, you can create an order tracking system to monitor orders from start to finish. You can also set up alerts to notify immediately if an order has a problem. The best part about NetworkON is that it easily works on mobile devices, so you don’t have to worry about having access when you’re out on the road. 

For a Free DEMO, check out our official website. 

The Bottom Line

Starting a home services business might look tedious without the right team and technology. However, you can slowly and steadily build a successful business with these tips and strategies.

Talk to our solution experts at NetworkON to learn how you can set up a home-services business.