How to Start a Service Based Company Business
There are many types of service-based businesses that you can start, including lawn care, window or office cleaning, dog walking, elderly care or even catering. You can also use your experience in marketing, accounting, tax preparation or web design to start a consulting firm. Select a business in which you are passionate because you will likely be working some long hours. Set up an office in your home so you can take advantage of the home office tax deduction.
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Things You'll Need
- DBA (doing business as)
- Vendor's license
- Business cards
- Brochures
- Fliers
- Office or storefront
Instructions
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1
Decide what type of service business you want to start. Find out as much as you can about the industry. Study how many competitors are in your area, what services they offer and how much they charge. Find out what the going rate is for your proposed services by averaging the prices of competitors. Determine whether it is best to charge per hour or per job, according to your competitors' pricing strategies.
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Apply for a vendor's license through your county, town or city. Register your DBA (doing business as) if you use a fictitious name for your business, according to Business.gov. Use the Business.gov website to search for other licenses or permits you may need in your state. Call professional associations in your area to determine whether or not you need certification in your field.
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3
Write a business plan for your service-based company. Outline whether you will need to hire any agencies or contractors to assist you, or hire employees. Plan how you will operate your business, such as from your personal computer or at a retail location. Do a three-year sales forecast for your service-based company. Estimate when you expect your business to turn a profit, according to the Small Business Administration. (See reference 1)
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Apply for a loan through your bank if you need money for your service-based company. Get copies of your credit reports from the three major credit bureaus: TransUnion, Experian and Equifax. Make sure there are no discrepancies on your credit report. Present the sales projections from your business plan to loan officers, which will help increase your chances of getting a loan.
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Decide what type of business structure you want for your service-based company: sole proprietorship, partnership or corporation. Form a sole proprietorship if you want to maintain autonomy in your company and make all the decisions. Create a partnership or corporation if you want additional financial backing or investors. Hire an attorney to help you complete all paperwork for a partnership or corporation.
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Market your business to your target audience. Call on businesses and corporations in your area if you are a consultant, for example. Present your background or sales pitch, then leave behind a business card and a brochure. Place ads in coupon magazines that are distributed to residences if you run a rental service business. Advertise in the print and online yellow pages to increase exposure for you company.
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Tips & Warnings
Expand your business as your profits increase. Rent an office or storefront and hire employees. Train your employees on various aspects of your services. Spend most of your time adding more business or residential customers.
References
- Small Business Administration: Writing a Business Plan
- Entrepreneur: How to Start a Cleaning Service
- Business.gov: Business Name Registration (Doing Business As)
- Business.gov: Business Licenses and Permits
- Internal Revenue Service: What You Need to Know About the Home Office Deduction
- Internal Revenue Service: What You Need to Know about the Home Office Deduction
