Guide to Starting a Service Business

Develop people skills

As a service provider, chances are you’ll be dealing one-on-one with clients, either in person, over the phone or via e-mail. Learn to work with various personality types.

I recommend: Dale Carnegie may hail from your grandfather’s day, but his techniques for dealing with people are still considered by many to be the best. Carnegie’s  5 Essential People Skills and other courses are available on CD or via an MP3 download. It’s not all about talking. Learn how to listen to what your customers are really telling you by heeding the advice on BusinessListening.com.

Draw up a business plan

A business plan helps you stay focused by giving you a road map to follow.

I recommend: The U.S. Small Business Administration provides an example of a business plan for a service business. Create your own plan with Business Plan Pro, which includes sample business plans and other tools.

Price it right

Knowing what to charge for your services can be a challenge. When setting your fees, consider factors such as the cost of doing business and what your competitors are charging.

I recommend: Figure out what it costs to produce and deliver your service. Use the worksheets that are included in Score’s pricing tutorial. The Advantage Group and Rapt offer several tools and services to help you develop sound pricing strategies.  

Mind your numbers

As a business owner, you have to keep a close watch on your income and expenses.

I recommend: Take the tedium out of bookkeeping and other accounting tasks by using Intuit’s Quicken Home & Business software, or its more-advanced big brother, QuickBooks. If you bill by the hour or day, keep detailed records of your time with an online system such as TimeLedger.

Lay the legal groundwork

Talk to a business lawyer about how to structure your company. While you’re at it, get legal advice on how to draw up customer contracts that protect your business and define the services you’ve agreed to deliver.

I recommend: Find lawyers who specialize in working with small businesses at Findlaw.com or SmallBusinessLawFirms.com. You can have legal documents drawn up for you within 48 hours at LegalZoom.com.

Get out and network

Attend meetings of local and regional organizations where you might meet prospective customers or people who can refer you to prospects. Remember to always look for ways that you can return the favor and by helping your fellow networkers.

I recommend: Join Networking for Professionals to meet other professionals in person and online. Visit business-to-business networking sites such as Xing.com.

Develop marketing materials

Whether you promote your business with brochures, postcards or e-newsletters, your goal is to remind customers of how they can benefit from using your services.

I recommend: Send a monthly e-newsletter to your customer and prospect lists. Use templates available from Constant Contact, which also provides e-mail delivery and management services. Design your own postcard mailers using the United States Postal Service’s economical NetPost Premium Postcard Service. Make it easy for customers to spread the word about your company. Learn how to incorporate word-of-mouth marketing strategies into your marketing.

Promote your expertise

Showcase your knowledge by offering to be an expert source for journalists.

I recommend: Journalists are often looking for authorities to interview for stories they’re writing. Pay to become a member of BusinessWire and ProfNet, two services that journalists often consult, and you can be listed as an expert source. You can also distribute press releases to business editors through BusinessWire. On ProfNet you can respond to queries posted by journalists who are looking for specific information from experts.