Wednesday, June 29, 2022

As home service businesses grow, entrepreneurial prospects grow

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Shreya Christina
Shreya has been with for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

Chris Buitron is the CEO of Mosquito AuthorityThe nation’s leading recognized professional supplier of tick and mosquito control.

During the pandemic, the home service industry the most stable business category apart from groceries and general merchandise. This is not surprising as most people have drastically increased their time at home, either because of the requirements for remote work or the inability to pursue other leisure activities.

The past two years have also changed the way people evaluated their lives and the investment they made in their careers. This caused many to really think about their financial future and that included exploring entrepreneurship. The US Census Bureau reported the biggest increase in new business applications in 15 years, as people chose more control over their time. We have certainly seen that increased interest in the home service industry, and we continue to see it even now that the peak of the pandemic is over.

In their evaluation of entrepreneurship, future entrepreneurs distinguish between trending business opportunities and companies with a stable, growth-oriented foundation as a wealth-building strategy. Knowing the difference is a smart investment step in choosing your path to owning your own business.

Growth-oriented fundamentals

According to a report by Angicthe home service industry is: a $506 billion dollar market in the US – more than our combined exports to Canada and the UK. A home service task is performed every 16 seconds. But even with thousands of home service companies in operation, the market is far from saturated. I believe there is ample scope to join this growth-oriented industry for four main reasons:

1. The housing market. There are two considerations here. First, more people are buying a home, resulting in more demand for home services. Secondly, the existing homes need improvement.

2. Constant demand. Home infrastructure such as roofs, appliances and floors do not last forever and eventually need to be replaced. Family dynamics are also changing — from young families with children to empty nesters and retirees — who each need their homes to offer different value as their lifestyles change.

3. DIY burnout. Even the most adept DIYers can’t do everything, so home care is needed to fill the gaps. Busy professionals simply don’t have the time, and aging adults don’t have the energy for projects. The do-it-yourself shift has shifted more towards do-it-yourself in home services.

4. Aging at home. People are living longer, healthier lives and can continue to live at home longer than ever, especially with the help of home care. Many seniors are mortgage-free and have the income to spend on these services, which makes more financial sense than leasing in a low-maintenance living situation.

The home service industry is not as affected by economic challenges as other industries, and the pandemic has proven how important this is when it comes to owning a business. In general, entrepreneurial companies are more recession-proof.

Building wealth with home services

Business Acquisition Service Acquira shared investment thoughts on why: home service companies make strong acquisitions† One factor that recession-proof business categories had in common was their service area; they prefer a radius of at least 50 miles. In comparison, the service area for physical businesses such as laundromats, car washes or restaurants is a radius of 8 kilometers. This brings an important element to the discussion of building wealth in your business: how to attract customers.

Having spent many years in marketing leadership, one of the most effective ways my company pulled customers out of competition was through solid and consistent communication. In the home service industry, this is a key factor for success, and today it includes being technologically proficient. Targeting the type of customer you want is a key growth strategy, and to do that you need to reach people where they are; that means moving across geographic boundaries to a solid online presence.

Another wealth-building strategy that franchises do well and that independents can pursue as well is scalability. The home service industry has two main options for scaling your business.

1. Add locations. You can expand your services by opening more branches for your company. You’ll save time by opening more locations because you know how to replicate your business. There are also financial savings from being able to share costs between locations in the areas of banking, administrative services, staffing and bulk purchasing.

2. Add an additional company. The home service industry offers an excellent opportunity to grow your business by adding another service to what you currently offer. For example, a landscaping service might add a pest control service, or a renovation contractor might add a painting service. Adding a compatible service to your business, especially one that involves employee training, can be quite rewarding financially.

Venturing into Home Service Entrepreneurship

There are many ways to be fulfilled in your life as an entrepreneur. You can find a craft you are passionate about and pursue it relentlessly. You can also strategically create a lifestyle plan and choose a company that makes that possible for you. Usually there is a bit of both involved.

I’ve found that running a business isn’t just about being in charge of your life today, it’s also about building the future you want. You can make money by owning a business and you can build wealth by making smart financial and lifestyle decisions. I hope I’ve helped you see how the home service industry offers many avenues for you to build the life you want, and if you do it right, create a good business to sell when you’re ready to retire . Business Council is the leading growth and networking organization for entrepreneurs and leaders. Am I eligible?

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