A Service-Based Business: 3 Reasons They’re The Best

service-based business

Do you run a service-based business? Before you even come up with your original business idea, there’s one thing you have to consider. Will I start a business that sells products, or will I start one that focuses more on selling services?

I’m not going to list all the different business ideas in this realm. Instead, we’ll look at some reasons why a service-based business is the best idea for you!

 

service-based business

No Product Costs

Clearly, if you don’t sell products, then you have none of the costs that come with selling products. This includes buying raw materials if you make the product from scratch, or paying suppliers to supply you with products.

There are loads of service-based businesses, such as a childcare business, where the cost of the service is almost non-existent.  Sure, you have other costs, which you can see more at childcare4sale.com.au.

But, with this idea, the service pretty much requires you to have childcare skills. The same can be said for loads of other service-based business ideas, a content writing business is another that springs to mind.

Here, you just need to be skilled in the art of content writing to provide your service. There are very few costs, meaning your business spends less money.

 

service-based business

Easy To Alter Your Service

When you sell products, it’s hard to change what you sell without completely altering your brand. The problem is, some products go in and out of fashion. With services, it’s very easy to alter what you offer depending on current trends.

A great example is a business offering IT services – how much will they have changed over the years? Ten years ago the services they offered could be quite basic such as anti-virus protection and setting up an IT network.

Now, they can add website maintenance, mobile security, and loads of other IT-based services that have popped up in that time. Being able to tweak things about your service-based business – without needing to completely change your brand – is a huge bonus going forward.

 

service-based business

No Stock To Worry About

As the owner of a service-based business, you have no stock to worry about at all. On the other hand, let’s look at what a product-based business has to deal with. For example, an online business that sells clothes.

They have a finite number of items in stock, so what happens when they sell out? The business now has to get more stock in, but could lose out on sales in the time it takes to restock.

Also, what happens when you don’t sell all your stock? You end up needing to discount the prices, making a loss on the remaining items just to clear your stockroom.

When you offer a service-based business, you never run out of the service, and there’s never any worry of not selling enough of the service either.

 

service-based business

It’s evident there are some fairly good arguments in favour of service-based businesses. If this is the type of business you wish to start, then you can learn more on timberry.bplans.com.

Perhaps I’ll also do an article about why product-based businesses are good, just to give a more balanced view of the options out there for entrepreneurs.

Feel free to let me know if you’d like this!

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