Setting Up a Service Company: Everything You Need to Know
Setting up a service company is a relatively easy process and there are no limitations when it comes to starting a service-based business.3 min read
2. Things to Consider When Determining a Good Match
3. How to Start a Service Business
Setting up a service company is a relatively easy process. There are no limitations when it comes to starting a service-based business. Service companies can be started by anyone no matter their age and experience, and it can be done from home or out of a business location with little financial resources.
Many people find a number of advantages to starting their own service company including:
- The ability to be your own boss
- Having independence and freedom
- The ability to control your own destiny
- The ability to earn more money
Starting a Service Company
Service companies can grow as much as you wish. You can perform the services yourself or hire other employees to increase revenue and cover a larger territory. You can also open multiple locations to expand to more geographic locations.
When starting your service company, you have the option to do the job part-time or make it a full-time business opportunity. The primary downside to making it your full-time job is you have the risk of it possibly failing. Before leaving a full-time job, it is important to make a risk assessment weighing in all the benefits of your current job before making the decision.
The decision on whether or not to make your new business part-time or full-time will largely be a financial one. If it seems like the risk is too great, you might want to consider starting your business on a seasonally or part-time basis. The downside to this is your business is likely to grow a little more slowly than if you were to run it full-time.
Some examples of a seasonal or occasional business include:
- Snow removal
- Yard maintenance
- Income tax preparation
- A vacation property rental agent
There are other downsides to choosing a seasonal business versus one that is operated the entire year, Some of these downsides include:
- The cost of advertising and marketing for a short season
- The risk of customers choosing other vendors during your downtime
Seasonal and occasional work is a popular form of retirement income which allows you to enjoy your golden years and build up some additional savings. Since the cost of living is outpacing the cost of savings many retirees are finding additional income a necessity. Older business owners have the benefit of extensive knowledge and experience that can often translate in the ability to start a successful service business.
Things to Consider When Determining a Good Match
The first step to starting a successful service company is making sure that the business will be a good match. Finding a good match is important so that you can earn the money you want and not become bored or frustrated with your business. Even if you hire other employees to perform your job tasks for you, you will still need to be present to run the business.
It is also important to find out what certificates will need to be obtained and the costs associated with them. Always view training as an investment in your company that should be well worth the payoff.
How to Start a Service Business
There are important steps that you will need to follow before starting your service company.
- Make sure that there is a market for your service - Do your research and make sure there is a need for the service you will provide in your specific geographic area.
- Start slow - Make sure you can financially make the switch before jumping into your business full-time and make sure you don't grow faster than you can afford to.
- Be realistic about earnings - While it is important to know the potential of your business make sure you set realistic revenue goals for the first few years.
- Draft your business plan - Create a business plan with set milestones and goals to achieve and describe how you will achieve them.
- Get your financial house in order - Determine how much you will need to start your business and keep it going for the first few years and detail how you plan on getting the finance.
If you need help with setting up a service company, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.