Technically speaking, a service business is one that assists, improves, or adds value to another business or to a consumer. In other words, if you plan on selling your skills and abilities versus an item or thing, then you are considering a service business.

The service business can be operated from the owner’s home, or from an office or warehouse where supplies can be stored. For purposes of this explanation, we will not attempt to give examples of the hundreds of different services businesses except to say that the service business we refer to here does not require a retail location. If your idea is retail-service oriented then you should go back to the Retail Business page. Likewise, if your idea involves the manufacturing of an item to be used in a service business then you need to go to the Manufacturing page. A service such as plumber, painter, graphic designer, or courier service meets the service definition.

With that in mind, you have undoubtedly been thinking of turning your idea into a business for some time now. Keep in mind that many fine service ideas have developed into very successful franchise programs. We assume that you have actually provided your service to someone and that this has been a successful experience, and that is why you want to go into business. The next step is to turn this successful experience into a successful business. The following steps will show you how.

First, we will look at ways to determine if you do, indeed, have a marketable service:

1. Before you go any further it is important to find out if anything like your idea is now being done as a business somewhere. There are many sources for this research; the Internet is an outstanding resource, with such services as national yellow pages, search engines, and Trade Associations being readily available. There is also the Business Reference Desk of your local library. Finally, don't forget about your local chamber of commerce. In any case, you need to get a really good feel for how well this "need" you have identified is already being met. In your honest opinion, is the community large enough to support another similar business? Demographic data (how many people there are in your community, where they live, and their approximate income levels) might help you in this decision; it is available at your local Community and Economic Development Council or at the library.

2. Make a detailed write-up of your idea, how it works, who your customers are and how you plan to service that market. Take this document to a Notary Public and have them witness your signature and date. Place the document in an envelope and seal it, then mail it to yourself. When it comes back with the Post Office date stamp on it, do not open it. simply file it in a very safe place. This provides proof of your idea and helps to protect you in case of questions later.

3. We strongly recommend at this point that you take the Personality Profiler and Carland Entrepreneurship Index. The Personality Profiler will tell you whether you have the right personality and attitude to sell your ideas effectively, or whether you should remain the "brains behind the scene" who hires the right people to do the interface work. How well you interface with brokers, producers, customers, and suppliers will ultimately determine your success or failure in this business endeavor. If you have partners or associates, have them take the tests as well, so you can determine who has the best personality match for interfacing with people in this highly competitive and diverse industry.

The Carland Entrepreneurship Index will show you what level of entrepreneur you are...should you start a very small enterprise, or are your capabilities more geared to competing with Microsoft? The Carland will tell you.

We offer these two tests, and we provide you with all the interpretations and recommendations you need to make the crucial decision facing you at this point. Click here if you want to learn more about the importance of business personality.

4. Testing the market: Be very selective in where you test. Select your test market so that it represents what you think will be the biggest source of business. For example, if you have a dent removal service, you or your associate (see step 2 above) should go to a medium sized auto dealer and offer your service at a discount. What if they already have such a service? Then you must convince them that your way is better and more economical. If you cannot get you foot in the door here, then it's time to assess the market again. What was it that this market test showed you? Maybe you selected the wrong market. Maybe it was your approach...try preparing a good looking ad for the newspaper and run it no fewer than three times in the section that is appropriate for you. You can also run your ad in the trade publication that serves the industry you cater to. (Note: do not advertise beyond your limited budget. Magazine advertising, for example, can be quite expensive.) Use what you find in your market tests to tweak your product, tweak your approach, select another test market, and do it again.

Eventually, you will either succeed in demonstrating that you have a service that people want, or you will find that the market is not as you expected it to be and that your service is not needed. If successful, it's time to consider starting your business! If unsuccessful, don't give up! You didn't fail, you simply discovered that you missed the market. Go back to step 1 and reassess your service and your market.

Other Service-specific considerations:

If you need to hire people, be sure you have them sign a non-compete agreement. Your attorney can prepare this for you. This protects you from somebody who decides to leave you and go out on their own doing the same thing you do!

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