Benefits of Starting a Service Side Business

MIKE NESSELBECK

www.businessideainsight.com

If you’re at that stage where you’re looking to launch a side business, but you don’t necessarily have the idea nailed down or you’ve launched it yet, you’re in that stage where you’re sort of wondering what you should start and gathering ideas for potential side businesses you could launch. You’ve probably come across a lot of different business models like Drop shipping, affiliated marketing, amazon FBA, or software side businesses etc. and list goes on and on.

There’s so much information out there about starting a drop shipping business, or Amazon FBA that it’s beat into your head that these are the paths you should take, but let’s discuss why you should consider starting a service based side business.

Instant profit

If you base the service that you’re selling on the skills and passions you already have, you’re able to deliver that service without having to hire someone, and this keeps your overhead costs low.

You can generally operate this from the comfort of your own home. Then you don’t have to worry about renting out any space in order to hold inventory or spending that five to ten thousand dollars initially on inventory to sell. With the service, you can develop the offering and deliver it yourself to keep costs really low. And this will allow you to generate a profit more quickly.

Decreased competition with specific targeting

business, you’re able to tailor that service to fit the very specific needs of a very specific group of people. Similarly, once you’ve done that, there is usually only a few competitors in that area that can offer a service like what you’re offering.

If it’s based on the skills, knowledge, passion and experience you have, it will be hard for someone else to come into the market and offer the exact same thing, because yours is so highly differentiated on the unique value proposition that you can offer to the market.

Build a name and reputation for yourself

When you’ve built a service and you’re offering that to a specific industry, that gives you a chance to get out there, start your marketing, meet people and

ultimately build a brand and a name for yourself.

However, when you’re doing a drop shipping or Amazon FBA company, this is not always the case. While you may be able to dominate a certain market and build a brand, it becomes very hard to do that because you have competitors that can easily enter the market and sell the exact same products and build a brand that’s very similar to yours.

With the service, you’re building a sustainable side business that you can run for the years to come and where ultimately your reputation is going to build upon that and help you grow this side business and service altogether.

Higher profit margins

If you manage to position yourself properly in a niche market, in a market that has consumers that have money to pay for services, and you position yourself in a way that you’re adding some significant more value above your competitors, you’re generally going to have an ability to have a really great profit margin.

Let’s say you’re starting this service from your own home and operating,

online businesses typically have high profit margins, combined with a service that you offer with yourself and your own skills, and you can really have a really high profit margin service that you’re offering because you don’t need to worry about the overhead, hiring employees, or buying inventory, etc.

You Can Scale Service Businesses

Contrary to what other people are saying out there where you can’t scale a service or they think products are the only way to scale, or courses are the only way to scale, you can actually scale a service based side business. If you set up your business correctly and with a profit margin where you’ve included an hourly wage for someone, you can actually hire someone to perform the services that you’re hired for by your clients, pay them the hourly wage that you’ve included in the pricing for your side business. This will allow you to scale your side business as you can hire people to perform those services while you work on bringing more clients or work on other parts of the business.

Pivot or Change your business easier

The biggest benefit of starting a service, is that you can pivot or change your service a lot more quickly and with much more ease than some of the other types of business models out there.

For instance, if you’re offering a service and you notice down the road that you really need to niche down or you want to niche down into a more specific market, well doing so isn’t going to be too difficult. You’ll need to interview that niche and target market and make some adjustments to your service offering as well as adjustments to your marketing and maybe to some of how the operations are setup.

Conclusion

There are a lot of benefits compared to some of the other models you’ve probably read about out there. And well, a lot of those other models can make a lot of money, and they have for others. It’s really going to help you learn the fundamentals like how to conduct sales, how to change your offering and positioning, how to market your business properly, etc. So you can really focus on the core things in the business, instead of some of the other admin and operational aspects that are more heavy and some of the other models.

MIKE NESSELBECK

www.businessideainsight.com