If you are considering one of the many companies focused on services , keep in mind the market is fragmented. If you are in a more developed area, entering into the industry may be difficult.
However, if you are in a growing area, service-based businesses are in high demand. Be sure to research your market thoroughly before doing anything.
When you consider this industry, you have many options available. You can work in food services, financial services, auto services, or technology services.
One general rule to keep in mind about this industry is that it's hard to grow a big company. If your goal is to create a large organization, you are typically better off selling products.
Research your local market thoroughly to determine what types of services are in demand. You may be in a region that is more agriculturally focused. Or, you may be in a region more known for its technology.
Whatever the case, be sure to research and think it through. You don't want to open your company only to learn there's no demand.
Now that you've done your research, consider a service business for sale. Make sure it's one you enjoy because you will be spending a ton of time with it.
Be sure you obtain all proper licensing. Check with local authorities and let them know you want to obey all the rules. You don't want to start a company by upsetting those in government.
After you have your license, track down financing. Be sure you have a well-written plan. Use what cash you can out of your own pocket. Then, talk to banks and investors.
Offer investors a share of your profits, or part ownership in the company. Be careful to pick a personality you can work with. You don't want someone you don't get along with owning part of your company.
Make sure to pick out a great location. Be sure the market you are targeting knows how to find your location. If you run an auto company, make sure there's tons of foot and auto traffic in the area.
If you are considering buying a service business, research your niche well and make a smart choice. If you are considering selling a service business, make sure its run well so you can command the best price.
About the Author
This Wiki was written by Peter Watson, CEO of Biz Trader .