How To Start A Service Business

Service businesses are one of the top home business ideas of 2015. If you want to start a service business, you have two options: you can become a franchisee or you can start your own independent operation. Franchises can be advantages in that you can piggyback on the brand recognition with new customers and quickly get the business started. The franchises are also there to support you with marketing and operations processes. However, if you choose the franchise route, you will pay a hefty franchise fee along with a percentage of revenue in exchange for those benefits. And, you will have less control over how the business is run. If you decide to go the independent route, there are more responsibilities and things to consider. You could be competing against franchises with larger resources and will have to work hard to build brand recognition. However, you will earn a greater share of the revenue and the initial investment is less.

How do I register a service business?

The first step to starting a service business is deciding what type of business you will start. A sole proprietorship is the most basic type of business, and you can simply register a DBA (Doing Business As) with your city hall. If you have a business partner or plan on hiring employees, consider registering as an LLC (Limited Liability Corporation). With this type of business, you will receive additional liability and tax benefits. However, the registration and incorporation fees are a more significant upfront investment. LLCs need to be registered with your local secretary of state’s office. For more details on how to register your business, visit Depending on the type of business, you may also need special insurance, training, and accreditations.

How are service businesses taxed?

Most likely, your service business will be a DBA or LLC. These types of business can be reported on your personal taxes, and you can deduct most business expenses.

What is the best service business to start?

Electricians and plumbers are some of the highest paying service business ideas. Although you can join a technical or vocational school to learn the trade, those that can find an apprenticeship will get paid to learn on the job. Cleaning services are also a popular option, though they are less technical so the pay is significantly less as well. The equipment costs are minimal compared to trade businesses. Lawn mowing or landscaping businesses also have a lower barrier to entry. Ultimately, the type of business that you start is going to depend on your revenue goals, skill set and how competitive the market is.

Service business marketing ideas

There are a number of local marketplaces where you can find homeowners looking for help. Craigslist is a great place to start. There are also new marketplaces where local homeowners can name their price for house cleaning and you can accept the job, such as Task Rabbit and Zaarly. Before you start a service business, check these websites to assess the demand for services in your area.