Small businesses are trending in the US as the country offers a favorable environment for entrepreneurs. Markets are open, consumers have buying power, and funding is easily accessible. Further, startups need not navigate complex regulations and guidelines unless they operate in a regulated niche like healthcare, construction, or cannabis retail.
Factors like the e-commerce boom and the growth of remote working have opened new avenues for entrepreneurs. At the current growth rate, the gig economy will likely make up almost 50% of the American market by 2027. For entrepreneurs with the right skills, it is a great opportunity to foray into the service-based business domain.
Why Consider Launching a Service-Based Business
Financial challenges are the biggest hindrance to entrepreneurship. Things have improved in recent years in this context. The U.S. Small Business Administration states that most microbusinesses can launch for around $3,000 to start, while most home-based enterprises cost $2,000 to $5,000. The best thing about selling services is that you can start with a minimal investment.
Additionally, running these businesses is easy as you don’t need to source products, manage distribution, or compete with big players. Your expertise can help you secure a niche market and build a customer base as a provider. You can go solo or expand your team to serve your target market. A unique business idea can give you a winning advantage.
Low-Cost Business Ideas for Selling Services
There are many options when it comes to selling your expertise, from home baking to coaching classes and craft enterprises. You can think outside the box to explore untapped niches and build sustainable enterprises.
Here are some ideas for growth-focused entrepreneurs looking to tap the service-based business landscape with a small initial investment.
Event Planning and Management
The event industry witnessed a lull during the pandemic, but it is back with a bang. The market value of the industry touched $4.08 billion in 2021 after a slowdown in 2020. You can consider entering a niche market such as corporate conferences, theme parties, or wedding planning to start your service-based business on the right note.
The responsibilities of wedding planners include finalizing wedding event spaces, managing budgets, preparing guest lists, designing menus, and covering last-minute needs. You can add creative input like suggesting themes and helping couples with honeymoon planning.
The Madison Event Center highlights the significance of choosing the right venue for events, whether weddings or corporate meetings. It should be the core focus of your services because clients expect you to give the best recommendations.
Home Improvement Services
Home improvement services are in high demand in the US, with homeowners spending a staggering $472 billion on maintenance and improvement projects. You may need to invest upfront in equipment, training, and licenses to launch the business. But the payouts are handsome enough to cover the investment sooner rather than later.
In this industry, you can specialize in certain services. Think beyond roofing and plumbing because these are competitive niches. You can become a concrete and asphalt contractor to capitalize on the outdoor and landscaping improvement demand. The domain has fewer providers, so you can beat the competition easily.
According to Milliken Corporation, residential and commercial property owners require these services to ensure the aesthetics, quality, and safety of their exterior spaces. Exposure to elements necessitates periodic repairs of these areas, translating into recurring demand.
Technical and creative skills make you a good candidate for setting up a virtual service-based business. The best thing about this vertical is that you only need a computer and an internet connection to start. You can network and build connections to secure clients and long-term contracts.
With American business owners recognizing the value of outsourcing and remote work, the opportunities in this industry are growing. You can provide one or more of the following services:
- Content writing
- Graphic and web design
- Virtual assistance
- Customer support
- Fitness training
Facility Fueling Services
Another unique and low-cost service-based business idea is facility fueling services. Most businesses in the fuel industry require dedicated fuel facility system solutions through providers. It enables them to focus on growth and profitability rather than stressing about the heavy lifting.
Shields, Harper & Co states that the services offered by these fuel system solutions providers include project management, procurement, logistics, scoping, and product support. You can imagine the sheer size of the opportunity, with the country having 145,000 fueling stations as of now. The scope is big as you can explore clients in the retail and EV charging industries.
Setting up a service-based business is easy on the wallet and requires less effort. The chances of success are high because you don’t need to go a long way to break even. However, you should have a unique business idea and a solid plan to get off the mark and build from there. At the same time, you should have a growth roadmap to ensure sustainability and long-term success.