Profitable service business
A service business is an opportunity for a start-up with little capital or from scratch. And an unpaved field for creative projects. Any idea that will make people's lives more comfortable, save money and time has a right to exist.
The service sector is a generalized concept for the production of goods, both material (for example, tailoring) and non-material (consulting).
Of these, several general areas can be distinguished:
- consumer services;
- housing and communal services;
- catering services:
- hotel service;
- entertainment, etc.
Almost everyone can try their hand at this business. Moreover, for this it is not necessary to have a lot of money: you can get by with minimal investments. It is much more important to know the specifics and nuances of the area in which you plan to succeed. Responsibility, discipline and willingness to learn are the three pillars of your success.
Which is better: the classic version that guarantees a small but stable income? Or a completely new direction, where there will be no competitors? Usually, newbies are advised to choose a time-tested niche. So, regardless of the season, economic disasters and fashion, people need food, shelter, clothing and hygiene products. Providing their needs and requirements, it is possible to rise from scratch to a professional in the service sector in a short time. When thinking about what is more profitable to do, consider the prospects for growth and development.
Most Popular Service Businesses
The main conditions for success are your ability and sincere interest in the business. There are many examples when a small business in the service sector grew into a manufacturing or a large retail network.
Apartment renovation as a business
This is a relevant, profitable and promising direction. Decide on a concept: home renovation, office or retail space? Your target audience? An attempt to “embrace the immensity” is the easiest way to stumble.
You have decided to start a profitable business from scratch. Payback is an important factor in minimizing risks. Return on investment, cost recovery and increased project profitability. The service industry meets the requirements of a quick return on investment. 90% of the resources spent by the company are the knowledge and time of employees. Or a self-employed professional working in a home or rented office.
A case based on services to the public or for legal entities requires a special approach in the fight against competition. Attracting new customers and saving advertising budget. Read the article to the end. We have prepared for you 40 profitable business ideas with minimal investment. Follow the links to related content. Get more information to start your own business tomorrow.
Who is the article for?
You can work for yourself, not for hire, at any age. By deciding to take a step towards change, you are using an enviable perspective. Reaching a new level as a self-employed specialist.
Business ideas on services are suitable:
- People with higher and secondary specialized education, seeking to apply the acquired skills on their own;
- Students who do not want to work for an “uncle”, live on a scholarship and burden their relatives ;
- Employed, as a part-time job with the prospect of replacement;
- Beginning entrepreneurs with a small start-up capital;
- People without education or inclined to work outside their specialty;
- Existing businessmen who want to expand their business through new and related areas;
- Professionals who are ready to use their knowledge and experience to develop their own business;
- Able-bodied pensioners who are attracted to action and conquest of new peaks.
A university graduate expects to take a position with decent wages. In 2021-2021, there is a surplus of applicants. Demand exceeds supply. Going into business turns a former student into an employer. The service sector allows you to work independently, to reduce cost items to a minimum. Serving the population and legal entities is distinguished by a low investment threshold and quick payback.
Profile education allows you to work by profession. Apply the knowledge gained in practice. Among legal entities, accountants, financial consultants and lawyers are in enviable demand. The population needs craftsmen who provide household services.
Lack of education or desire to realize oneself in other areas does not exclude the prospects for development in the service sector. Tutors, nannies, nurses, and other specialists with hourly pay will find grateful clients.
Popular areas of profitable small business
According to statistics, 5 directions are in great demand in the areas of trade and services. Growth trends in 2021 promise continued interest in 2021.
- Mobile (mobile) enterprises - performers ready to come to the customer, are especially popular.
- Business for children - the budget of preschool institutions and schools continues to decline. Parents' expenses increase by 7-13% annually.
- Mediation - Leverage the expertise of Uber, Avito, Vamdodoma and other successful companies. Create your own business based on saving time and automating routine processes.
- Online training - saving time and money on professional development, education and motivation of employees. The indicator of demand for services is characterized by enviable stability.
- B2B cooperation - independent contractors, outsourcing firms, freelancers. Companies and individuals help free up time and automate business processes at affordable prices.
How much money does it take to open from scratch?
Profitable business ideas are always in demand, since you can get income from $ 1000 and more. Today, there are many interesting projects that are worth implementing. Let's consider a few ideas in such areas: services, production, sales.
In the service industry
The service industry is the most popular area in which you can make the organization of a profitable business. Below are some business ideas. For example, dress rental and marriage agency.
To run this business, you will need a room of 20-25 sq. m., where you can equip an exhibition hall and storage space for clothes. The equipment you need is:
- order table;
At the initial stage, we need 2 sellers who will be engaged in fitting and subsequent sale of dresses. Dress rental is a profitable business, as you can rent any exquisite dress at prices below market prices. For promotional purposes, it's worth creating a social media group and / or a website with a well-designed landing page. On average, you can rent several dresses per day for $ 200-300. You can earn $ 6,000 a month.
To create a marriage agency, you need to go through the usual registration as an individual entrepreneur. You will need the following equipment:
- laptop ;
- printer ;
- scanner ;
- phone ;
- table ;
At the beginning, 1-2 administrators with knowledge of foreign languages will be enough. Translators can be hired later. The administrator will receive potential customers, test, conduct surveys and open a database of grooms and brides. You can open both an international marriage agency and a national one.
The advertising will be photos of the connected couples posted in the office. The room must be at least 20-30 sq. m. for the convenience of customers. If you charge $ 30-50 per month for access to the database, then having 20 clients, you can earn at least $ 1000.
A crisis is a phenomenon that affects different business sectors in different ways. While many enterprises are on the verge of ruin, others remain practically unaffected by negative processes in the economy or even manage to benefit from them.
Service business in crises
The service sector is especially acutely experiencing the negative consequences of the crisis, because in conditions of decreasing purchasing power, people prefer to invest in something tangible, to pay for something that will stay with them for a long time. Nevertheless, for certain services, a crisis is an opportunity to get additional profit. But even in the industries suffering from the crisis the most, with skillful business conduct, you can stay afloat and even successfully develop your business, bypassing competitors.
The crisis could not but affect such a type of business as the provision of financial services. The decrease in the level of income of the population has led to the fact that the services of pawnshops have become more popular. Pawnshops remain afloat during the crisis due to the peculiarities of this field of activity - the real disposable income of their clients is falling, so people try to pawn some "extra" or become unnecessary property.
Experts note that at this stage there are two main reasons for the growing popularity of pawnshops.
- The cost of precious metals in ruble terms increased by more than 50 percent. As a result, it turns out that the amount of the loan that is handed out to the client has increased by one and a half times. 90 and more percent of citizens bring gold jewelry to the pawnshop.
- Banking institutions have tightened the process of issuing loans to the population.
Microloans "to paychecks" have not lost their popularity among the population, therefore, the services of pawnshops are actively used today.
The owners of pawnshops require a deposit, but this amount is several times lower than in microfinance organizations. In addition, the level of income and credit history are not taken into account there, which further adds to this service's popularity.
Insurance companies also began to feel a little more confident in such conditions, as their popularity only increased during the crisis. In these conditions, insurers focus primarily on small and medium-sized businesses that are willing to pay them for a guarantee of compensation in the event of bankruptcy.
The crisis is not a hindrance to the institutions providing the service of sanatorium-resort recreation. Recreational businesses have benefited from the fact that the majority of citizens have given up expensive travel abroad in favor of domestic tourism, which has given an influx of new clientele to local hotels.
Marriage agencies can also work successfully in a financial crisis. With due awareness of the target audience, this category of establishments is guaranteed an influx of interested clients looking for a financially secured groom at home or abroad.
Now people are trying to save money on entertainment, holidays, some are trying to spend less on food (for example, they do not order lunch in a cafe with delivery, but take it with them from home). As for the implementation of repair work, now not everyone has the opportunity to order turnkey repairs, but a large percentage of potential customers agree to replace the upholstery of old furniture and renovate the bathroom.
A considerable number of citizens refuse unplanned, spontaneous purchases - the decision to buy something expensive comes gradually and is carefully weighed. Particularly acute for the population is the question of reducing the amount of tariffs for housing and communal services - services to improve heating efficiency and install water and gas meters are again becoming popular as an option for long-term savings. An energy auditing firm will be able to succeed in such an environment.
What is a service industry?
By service we mean the provision of a particular service to a client. It can be intellectual activity or the provision of material services. In one case, the client purchases material goods for a certain value or monetary reward. In another case, the firm performs the work agreed in advance, receiving financial compensation for this activity. In the first case, for organizing a business, it is necessary to have initial capital, i.e. capital investments are required to purchase inventories.
The second option will be more interesting for people with a creative approach to life. In this case, even in the absence of start-up capital, it is possible to start your own business. An example of such a start-up in the service sector is consulting services to clients or “knowledge sales”
Advantages and disadvantages of this direction.
What is a positive moment in the development of this line of business? Firstly, the demand in the market. For any chosen area of activity in the service sector, you can find an interested client who is ready to pay for the service he needs. Secondly, the success of small business in the service sector is determined by market demand.
Meeting the needs of the population is the main goal of any company. It is necessary to focus on the needs of clients when choosing a future field of activity. The advantages of small business in the service sector are associated with its flexibility, the ability to quickly reformat to meet changes in market conditions.
It is more difficult for big business to reformat a well-oiled mechanism, and therefore small business can quickly fill the niche that has emerged in the service market. An additional incentive to develop a business in the service sector can be an individual approach to each client in the area of pricing, as opposed to clearer rules in trade and production. With this approach, the customer base is growing rapidly.
How to start a business without start-up capital?
At the initial stage of business development, not all entrepreneurs have a sufficient amount of initial capital, which often stops them from implementing their plans. But in practice, it often turns out that a successful start is possible even with minimal investment, which is confirmed by many successful companies.
From the above, we can conclude that in case of insufficient initial capital, it is possible to start by “selling” your own knowledge. The most costly activities when starting a new business are finding and renting an office space, the cost of raw materials and supplies, the necessary equipment, employee labor costs, and tax deductions. Also, a mandatory expense will be the registration of an enterprise, which in the case of a small business is an insignificant amount.
In the case of the sale of intellectual property, the lease of the premises can be excluded by organizing an office in your own apartment. The initial staff should contain a minimum number of specialists and include only those who you cannot do without yourself.
"Advertising is the engine of trade", do not forget about this golden rule even in conditions of limited initial capital. There are many opportunities to use the global Internet to promote your services.