Starting your own service operation can be a very exciting endeavor, but one that requires all your professional expertise, and your careful commitment to the success of your clients. Many people consider the entrepreneurial route, but it is a risky road to take, especially if you don't set yourself up for success. You don't have to offer a unique product, but you should offer a one-of-a-kind service.

Whether you want to teach, broker, or perform administrative duties, anyone can open a services business with the right attitude and financial backing. Competition will be fierce. You can't just put your feet up because it's your own business. On the contrary, you should expect to work very hard in the beginning. Before quitting your full time job to set up a services company, ask yourself the following:

1. Are you committed? It takes more than just a good idea to open a service operation. It takes time, money and hard work.

2. If applicable, do you have the right partners? Friends are sometimes best at being just that: they are not always good business partners. Vet potential collaborators as objectively as possible.

3. Have you done your research to make sure there's demand for your service? You may have a great idea, but how many others have the same idea?

Action Steps
The best contacts and resources to help you get it done

Start your own service small business with credibility and get licensed

Businesses are legally required to obtain certain government licenses. Your state may regulate services businesses via zoning and land use permits, federal and state employer tax ID numbers, and a business name certificate. Regulations vary from state to state, as do state agencies that do the regulating. There are online resources that can help you file these documents.

I recommend: Business Licenses is a fee-based online resource that provides you with access to permit information, including home occupation permits for owners who wish to launch a services business from home. Business.gov can help you obtain the necessary federal, state and local permits, licenses, and registrations for starting your business successfully. Use its “Permit Me” tool for efficiency.

Join an association and build credibility when you launch your own service biz operation

As a new business owner, you don't have to go it completely alone. Consider joining an association for support. Organizations bring together professionals with the same goals and challenges. As a member you have access to certification and educational opportunities, in addition to networking events, so you can meet industry peers, vendors and suppliers.

I recommend: The Professional Service Association and the Service & Support Professional Association both organize events for educational and networking opportunities. They also offer access to publications and other tools to assist you toward business success.

Consider enhancing your customer service skills when you launch a service operation.

Customer service is a very significant aspect of any service industry business. There are many training organizations and courses available that offer a diverse range of customer service training options. Consider training organizations that feature courses on a variety of customer service skills such as communication, writing, negotiation, self-management and business etiquette.

I recommend: In addition to diverse courses that include in-house training, workshops and seminars, Business Training Works offers free resources like icebreakers for teachers, trainers and facilitators. Baker Communications offers an extensive list of training in areas that include sales, project management, finance and energy.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider advertising your service biz operations in trade magazines and newspapers for enhanced exposure, and think about publishing a website.

Whether you’re a yoga instructor, a bookkeeper, or a business consultant, if you have solid skills and a track record of applying them successfully, you could have the foundation for a service business. But talent and experience alone aren’t enough to win customers and keep them happy. To stay on top in the service game, you need to have a knack for dealing with different personalities, and an unfailing commitment to delivering reliable, timely service.

After you’ve identified the service you want to offer, consider these questions:
1. What will it cost to establish the business and keep it afloat until you have enough positive cash flow to keep it running?
2. Do you need additional training or certification in order to compete with other service providers in your field?
3. Do you have the resourceful, enthusiastic, never-say-die personality of a successful entrepreneur?

Action Steps
The best contacts and resources to help you get it done

Develop people skills

As a service provider, chances are you’ll be dealing one-on-one with clients, either in person, over the phone or via e-mail. Learn to work with various personality types.

I recommend: Dale Carnegie may hail from your grandfather’s day, but his techniques for dealing with people are still considered by many to be the best. Carnegie’s 5 Essential People Skills and other courses are available on CD or via an MP3 download. It’s not all about talking. Learn how to listen to what your customers are really telling you by heeding the advice on BusinessListening.com.

Draw up a business plan

A business plan helps you stay focused by giving you a road map to follow.

I recommend: The U.S. Small Business Administration provides an example of a business plan for a service business. Create your own plan with Business Plan Pro, which includes sample business plans and other tools.

Price it right

Knowing what to charge for your services can be a challenge. When setting your fees, consider factors such as the cost of doing business and what your competitors are charging.

I recommend: Figure out what it costs to produce and deliver your service. Use the worksheets that are included in Score’s pricing tutorial. The Advantage Group and Rapt offer several tools and services to help you develop sound pricing strategies.

Mind your numbers

As a business owner, you have to keep a close watch on your income and expenses.

I recommend: Take the tedium out of bookkeeping and other accounting tasks by using Intuit’s Quicken Home & Business software, or its more-advanced big brother, QuickBooks. If you bill by the hour or day, keep detailed records of your time with an online system such as TimeLedger.

Lay the legal groundwork

Talk to a business lawyer about how to structure your company. While you’re at it, get legal advice on how to draw up customer contracts that protect your business and define the services you’ve agreed to deliver.

I recommend: Find lawyers who specialize in working with small businesses at Findlaw.com or SmallBusinessLawFirms.com. You can have legal documents drawn up for you within 48 hours at LegalZoom.com.

Get out and network

Attend meetings of local and regional organizations where you might meet prospective customers or people who can refer you to prospects. Remember to always look for ways that you can return the favor and by helping your fellow networkers.

I recommend: Join Networking for Professionals to meet other professionals in person and online. Visit business-to-business networking sites such as Xing.com.

Develop marketing materials

Whether you promote your business with brochures, postcards or e-newsletters, your goal is to remind customers of how they can benefit from using your services.

I recommend: Send a monthly e-newsletter to your customer and prospect lists. Use templates available from Constant Contact, which also provides e-mail delivery and management services. Design your own postcard mailers using the United States Postal Service’s economical NetPost Premium Postcard Service. Make it easy for customers to spread the word about your company. Learn how to incorporate word-of-mouth marketing strategies into your marketing.

Promote your expertise

Showcase your knowledge by offering to be an expert source for journalists.

I recommend: Journalists are often looking for authorities to interview for stories they’re writing. Pay to become a member of BusinessWire and ProfNet, two services that journalists often consult, and you can be listed as an expert source. You can also distribute press releases to business editors through BusinessWire. On ProfNet you can respond to queries posted by journalists who are looking for specific information from experts.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When a prospective customer disagrees with you on too many levels, it’s smarter to turn down the business than to take the client on and be miserable. Customers who are extremely hard to please will ultimately drain you of the energy you need to keep your business growing.
• •  While you’re getting your company off the ground, it might seem like a good idea to reduce your rates in order to attract more customers. If you slash your rates too dramatically, however, you might become known as the cheaper, and therefore less competent, supplier.
• •  Show your clients that you’re serious about providing good service by contacting them after you complete a project to find out if they were happy with your service.