If you’re starting your own home service business, you’ve picked a great time to do it. With a shortage of qualified labor in the skilled trades, your services are at a premium. You have an opportunity to establish yourself as a trusted professional in your community and set up a successful business you can be proud of.
You’ve probably got a lot of energy and excitement built up about your home service startup. You want to open your doors and start serving homeowners now. But before you get going, take the time to make sure you’ve got your business set up right. If you cut corners, what seem like small details can become big problems down the road.
Here are some tips to help you start strong and stay strong.
1) Do Your Research
You might not know the area you wish to serve as well as you think you do, even if you grew up there. Before you start your home service business, do some research. Who are your competitors? How many businesses like yours are there? What do they charge? Is there enough demand to support a business like yours? Who are your ideal customers? All of these questions and more should be answered before you start making your business plan, as they will inform key decisions including location, marketing and pricing.
2) Get Your Pricing Right
Nailing your pricing structure is vital to the success of your business. It’s a delicate balance. Too high, and your customers will take their business elsewhere. Too low, and you won’t make enough profit to sustain your home service startup. It’s common for people starting out in service businesses to undervalue their work at first to gain new business. But be careful with this tactic. Remember that raising rates is much more difficult than lowering them.
3) Find Help
Setting up a home service business, or any business, is not an easy process. You need a business license, a federal tax ID, separate licenses depending on what trade you’re practicing, insurance, a location, budgets and business plans. You need to choose a business structure that fits your needs, whether that’s a sole proprietorship, C corp, S corp or another option. All of these issues impact whether you’re operating legally, how much you’ll pay in taxes, and much more.
These issues are difficult to navigate, but you don’t have to go it alone. Partnering with a team of business startup experts and accountants can help you get the paperwork out of the way so you can start running your business and helping homeowners.
At Numbers House, our team includes business startup experts, accountants, tax preparers and more. We can get your business up and running with all the local, state and federal requirements so you can operate with peace of mind. To find out more about our business startup services, contact Numbers House today.