When considering success factors for a new business, home services offer five potent reasons that lead to a successful venture:
- Home Services area high touch type business where dealing with the customer cannot be replaced by online or automated systems. Over the last 20 years, we’ve seen a number of industries turned inside out through automation and other machine led replacements. Home Services always needs a person to person interaction and people to complete the work.
- Dual income households is providing two factors that create more success for Home Services. First, over 60% of the households in the U.S. are now dual income. Many of these households have new levels of discretionary income but with leisure time at a premium, the second factor helps Home Services; namely, these households don’t want to spend their time on sprucing up the home and would rather pay someone to do it for them.
- Home Service businesses provide a low overhead business model in most cases. Most of these type businesses can be operated from home of a small warehouse/office setup.
- The market is large and relatively stable. Home ownership provides a huge market in almost every area of the United States. In addition, home ownership has remained relatively stable across the nation and will provide a growing market for years to come.
- Expansion of the business is relatively easy. In a brick and mortar establishment, larger spaces and increased rent is the only way to increase traffic and revenue. In a Home Services business, adding additional production can be as simple as adding a helper to a current crew and is normally no harder than adding an additional crew with the equipment, vehicle, etc. needed to support them. In either case it is easier from a management as well as cash flow position to expand the business.