4 Factors That a Service Business Must Get Right

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4 Factors That a Service Business Must Get Right

Apr 14, 2022

A service business covers a wide array of industries. It may be a call center dealing with customer complaints, legal work, project management, or plumbing and roof installations. What defines your service business is its high dependency on customer interaction. Your company needs additional features to be sure of managing your customers as well as any employees you might have. These four identifiable factors could help your service business flourish.

1. A Service Business with a Clear Message

According to information provided by the National Business Capital, start-ups in construction services had a 53% success rate of surviving. Healthcare and education services came a close second with 44%.

 A factor they have in common is they provide services that are essential in maintaining modern life. Therefore, providing a clear message that your service is for the customer's benefit is of prime importance. For example, unexpected events such as burst pipes need urgent attention. Even though you are a micro-business, perhaps your small team of professionals offers emergency service twenty-four hours a day.

You could be a sole proprietor offering piano instruction. If your service is tailored, you could offer to teach customers in their homes rather than expect them to travel to yours. In a micro-business, survival often depends on a unique selling point that's personalized and flexible. Such attributes can have an advantage over large, impersonal corporations.

You can help your business grow by providing excellent service. However, failing to state the flexibility you offer can make potential customers turn elsewhere. It's worth taking some time to define your service on your website or door-to-door leaflet campaign. It's often the first port of call for those in need of your services.

2. Fulfilling Your Business Services

A service business serves customers rather than selling them products. Your business will inevitably depend heavily on how you create a friendly, approachable image. Your micro-business needs to make potential customers trust you to deliver the right type of service from the very beginning.

Competing against large established companies can appear difficult. However, according to research carried out by Small Business Trends, 99.9% of American businesses are identified as small. In addition, 47.1% of workers are employed in small companies. As a self-employed service provider, you have every chance of gaining the trust of your customers.

Ensure you're qualified in the service you want to provide. You'll lose customers fast if you cannot deliver professional quality work. Services such as electrical work are highly dangerous if carried out by unqualified personnel. Always display your certificates, diplomas, and commendations from customers on your website or at your premises. They help provide assurances of reliability for people looking for dependable services they can trust.

3. Teamwork and Motivation

Assembling a small team of dependable employees is often essential if you want to transition from sole proprietor to micro-business. However, the team members you choose could seriously affect your chance of succeeding. According to a study by Gallup, a highly motivated team can result in a small business enjoying 21% higher profitability.

The same study showed excellent motivation resulted in 41% lower absence rates. Many dedicated employees work for micro-businesses where they may have greater responsibility and gain a wide range of experience. However, your employees need to have an extra dimension to their personalities in addition to professional qualifications.

A cheerful, friendly disposition is essential for a micro-business operating in services. A capacity for resourcefulness and solving problems is also highly advantageous. Your team doesn't have to be large to help your business survive, but it does need to be effective. Assemble the right team, and your customers are more likely to stay loyal to your service.

4. Ensuring Your Customers are Important

It's important to prioritize each customer through a highly personalized service that makes the most of your small size. A sole proprietor or micro-business should establish good marketing practices.

For instance, you might provide maintenance for backyards. Consider communicating through social media to inform your customers of seasonal tasks you can carry out to save them time. If they consent to email, let them know of plants that are available and how you can provide lawn or decking care.

Taking an interest in each customer can make a difference when it comes to loyalty. Keep a record of the tasks you've already completed for them. Then when you arrive at a new assignment, you can refer to past work. Customers always love the fact that they are remembered. It makes them feel valued. 


As a sole proprietor or micro-business, you can't expect to compete with the scale of a large rival. However, you can outperform them by providing excellent service. Highly personalized and approachable, you can establish an effective rapport that enhances your professional skills. 

Good motivation and high-quality work should help you succeed.

Meet The Author:


Michael Dinneen

Michael Dinneen of NYC Nanny Agency NannyCity. NannyCity is a leading Nanny Placement Agency with locations in both NYC & CT.


The opinions expressed in our published works are those of the author(s) and do not necessarily reflect the opinions of the National Association for the Self-Employed or its members.

Courtesy of NASE.org