Service-based businesses are businesses that provide services to their customers. Service-based businesses are different from product-based businesses because service-based businesses provide services that are essential to everyday life. Examples include medical care, child-care, and beauty services.
Starting a service-based business is one of the best ways for new entrepreneurs to make money. Service businesses are easy and inexpensive to launch and maintain, making them an excellent choice for first-time entrepreneurs who don’t have much startup capital.
The key to success with any small business is finding a niche with low competition. This way, service-based businesses can focus on providing essential services while building a viable business.
Examples of Essential Service-Based Businesses
Service-based businesses can be very lucrative because they typically require little startup capital, have low overhead costs, and are easy to run. Many essential service-based businesses that fall into this category include:
- Plumbers: Plumbers can earn a decent profit if they can charge their customers a high hourly rate. Plumbers are essential because they provide a service that is essential to everyday life and businesses. They are trained to solve essential problems such as fixing plumbing issues both at home and in commercial establishments.
- Electricians: While there is some startup cost involved with becoming an electrician, the essential service they provide can be profitable if they’re willing to start small and grow their business over time. Electricians are highly-trained individuals who can work in homes, retail shops, and industrial buildings. They must always be equipped with essential tools to ensure their safety while on the job (e.g., voltage detectors). They can also offer a solution for any electrical problem that arises in your home or business, from faulty outlets to broken circuits.
- Personal Trainer: Fitness trainers who own their own gym or operate out of a studio typically have little overhead costs. Personal trainers can earn a lot, especially if they are good at what they do and have a broad network of clients.
- Real Estate Agent: Real estate agents can earn a lot of money by just selling homes. They can also make a good salary through commissions from the sale of commercial properties and management fees from rental properties they have on their roster.
- Lawyers: There are different kinds of lawyers. For example, a car accident lawyer will charge a fee for providing legal representation and advice to someone injured in an accident caused by another person or party. On the other hand, a family lawyer will handle divorce cases, child custody cases, and all other cases related to family law.
- Doctors: Doctors are essential service-based business owners because they can make a good salary by being commissioned for their services from insurance companies or private clients who pay them directly. Doctors who operate independently instead of working at hospitals earn more because they get paid well through bonuses and incentives for performing medical procedures like surgeries.
- Accountant: Accountants usually work on an hourly basis. Accountants are well-versed in filing tax returns and keeping track of the books at any business enterprise, including service-based businesses and product-based businesses.
- Therapists: Therapists help people with mental or physical disabilities through a series of different activities such as counseling, speaking one-on-one, and providing essential medical services. People who suffer from mental disabilities are usually referred to therapists by doctors.
- Marketing Professionals: Marketing professionals help entrepreneurs with essential marketing and advertising strategies to promote their services or products. They also plan events that involve using social media platforms such as Facebook, Instagram, etc., to help their clients gain exposure.
Supporting Service-based Businesses
The best thing about service-based businesses is that they help meet the needs of people in society. People who are running service-based businesses are good at what they do. This is why they can help a lot of people by offering the services they are providing.
Without service-based businesses, it might be difficult for people to navigate through life. For example, people who have health problems should immediately consult a doctor. A doctor provides healthcare services that will help people with health conditions recover. Without doctors, it would be impossible for people to receive the healthcare services that they need.
Service-based businesses are essential because they help people in their everyday lives. People can count on all these essential service-based businesses because they are confident that those who offer services will help solve their problems more effectively. Therefore, people should support service-based businesses more because of what they can do for people in society.