Starting a small, service-based Business can be challenging, but with the right advice, you can set yourself up for success. We’ve gathered 18 expert tips from CEOs, founders, and industry professionals to help you navigate this journey. From leveraging your network to maintaining personal customer connections, these insights will guide you in building a thriving business.

●      Leverage Your Network
●      Remember that Cash Flow is King
●      Embrace a Personable Approach
●      Complete Legal Formalities
●      Showcase Authenticity
●      Always Sign Agreements
●      Adopt a Success Mindset
●      Conduct Thorough Market Research
●      Form Strategic Business Partnerships
●      Optimize Your Google My Business
●      Narrow Down Your Niche Focus
●      Treat Connections as Opportunities
●      Seek Expert Advice Early On
●      Foster Strong Client Relationships
●      Craft a Problem-Solving Offer
●      Use Content Marketing for Expertise
●      Prioritize Exceptional Customer Service
●      Maintain Personal Customer Connections

Leverage Your Network

Use your network. Contact your LinkedIn contacts in priority order for their potential to support your goals. Share what you’re doing without a hard sell. Ask for a 15-minute catch-up chat where you both update each other. In the chat, ask for connections with people that may benefit from your services or are excellent networking opportunities.

Rich Barton, Coach, Rabney Coaching

Remember that Cash Flow is King

Focus on your cash flow. This is paramount in any business, whether small or large. Without steady and consistent cash flow, there is no foundation. Many small businesses fail because of inadequate cash flow management.

For example, the infamous and now bankrupted business Theranos, founded by Elizabeth Holmes, suffered from poor cash flow management. Holmes had grandiose dreams and ambitions but failed to focus on the basics—cash flow. The company’s failure was primarily attributed to poor financial management and fraud, ultimately leading to bankruptcy. Had Holmes concentrated on managing the cash flow and economic aspects of the business, the company might have avoided the dire consequences it faced.

So, if you’re starting a small service-based business, remember cash flow is king. Make sure you’re monitoring it at all times and always ensure you have enough to sustain your business.

Paw Vej, Chief Operating Officer, Financer.com

Embrace a Personable Approach

Offering a service is all about humanity, and when you’re just starting out your service-based business, being a personable and like-minded brand is important for generating interest and gaining clients.

People choose to go with small and independent businesses because of the personal, intimate aspect and because they know their patronage will be given the attention it deserves. So, rather than appearing too business-like, give yourself a chance to level with customers to let them see the humanity behind your business.

John Berry, CEO and Managing Partner, Berry Law

Complete Legal Formalities

Your business may be small, but it still needs to be a legal entity for you to provide any service or conduct any transactions. So, the first thing to do is complete the formalities of legalizing your business and lining up the paperwork.

Besides the registration process that helps you set up your banking accounts, create terms of service contracts for your clients, and even employee agreements for your workforce. Remember, the size of your business is irrelevant. Whether you’re providing a service or manufacturing or selling a product, it’s essential to have your legal paperwork in place.

Riley Beam, Managing Attorney, Douglas R. Beam, P.A.

Showcase Authenticity

One of the rising marketing trends for 2023 is customers wanting authenticity from brands. They’re not only looking to connect with the product but the founders, the story behind how and why it started, and more.

Customers are looking for brands to show “who” they are by sharing the story about how the brand got started, their culture, the people behind the brand, and how they are helping make a difference in their customers’ lives. This kind of authenticity helps humanize your brand and make it feel more approachable and trustworthy.

Maegan Griffin, Founder, CEO, Nurse Practitioner , Skin Pharm

Always Sign Agreements

Regardless of how the client seems, the project size, or the money involved, it’s always essential to have them sign an agreement. You never know how they’ll behave when things go south.

I learned this the hard way. I committed to a six-month service period with a seemingly polite, rational, and lovely client, only to find out that they were terrible at meeting deadlines, including payment. The process of following up and being ghosted was frustrating. It ate away at my confidence and decreased my productivity on other projects.

Never let yourself be stuck in that situation; always be prepared to protect yourself at all times.

Joyce Tsang, Content Marketer and Founder, Joyce Tsang Content Marketing

Adopt a Success Mindset

Adopting a success mindset will allow this new small business owner to focus on opportunities rather than obstacles. They can stay motivated and resilient in the face of challenges with a positive and growth-oriented mindset and by maintaining a solution-oriented approach to solving any problem.

Moreover, this mindset also helps in remaining focused on achieving objectives, making good decisions, and taking calculated risks, all of which are necessary for establishing any successful business. Finally, having a success mindset will empower this new entrepreneur to accept change, learn from mistakes, and constantly develop their abilities and services to meet the changing demands of their clients.

Johannes Larsson, Founder and CEO, JohannesLarsson.com

Conduct Thorough Market Research

Extensive research on several fronts is key before starting a small, service-based business.

Determine your market area and then research potential customers within it. See if the services you want to provide would be within a niche that’s optimal for profit. You may have a stellar idea, but if market demographics don’t support customer needs or desire for what you’re offering, then you’re setting yourself up to fail.

If you find that the area you want to base your business in would support your service, then research potential competitors to make sure the market isn’t already saturated with that service.

Research potential competitors thoroughly, including customer reviews. This can help you make your business stand out by offering something different and better.

For example, if you wanted to start an independent insurance company, you could specialize in certain types of insurance which competitors are lacking, either in coverage or in customer service.

Michelle Robbins, Licensed Insurance Agent, Clearsurance.com

Form Strategic Business Partnerships

My best tip for someone starting a small, service-based business is to cultivate strategic partnerships with complementary businesses or service providers in your niche. Establishing these relationships can create mutually beneficial opportunities for growth, increased visibility, and access to new customer bases.

By working together with partners who share a similar target audience or offer complementary services, you can leverage each other’s resources, networks, and expertise to enhance the value you provide to customers. Collaborating on joint marketing efforts, cross promoting each other’s services, and offering bundled solutions can help you expand your reach and build credibility, all while keeping marketing costs in check.

This approach not only helps in growing your business, but also strengthens your position in the market by offering more comprehensive solutions to your clients.

Will Gill, Event Entertainer, DJ Will Gill

Optimize Your Google My Business

When starting any business, it’s important to create a good Google My Business profile. You want to fill out everything and post a bunch of photos. You want to have as much information on Google My Business as possible.

You also want to update with any new products or services that you are offering. Google My Business is free but takes a little time to set up and update regularly.

Evan Mccarthy, President and CEO, SportingSmiles

Narrow Down Your Niche Focus

My best tip for someone starting a small, service-based business is to niche down.

By focusing on a specific area, you can address your prospective customers’ exact needs, identify their problems, and present tailored solutions. This approach will help build trust, and as you accumulate relevant case studies over time, it will become easier to close more business.

In my case, I’ve achieved significant success by using my business as a guide, which helps build trust with prospective clients.

Leigh Mckenzie, Owner, UnderFit

Treat Connections as Opportunities

No matter your service (mine is content creation), you never know where your next opportunity will come from. I like to treat every new connection as the potential for new business, whether it’s working directly with them or getting a referral. Even when meeting people outside of your industry or target market, you never know who they know who could use your services.

Always put your best foot forward and be your authentic self. When people can get to know the real you, they’ll feel more comfortable referring you to others (or using your services themselves!).

Alli Hill, Founder and Director, Fleurish Freelance

Seek Expert Advice Early On

Every business field, even the smallest and the easiest, has its pain points and obstacles you can’t predict until you start doing it. To avoid as many of them as possible, invest your time and do your market research very carefully.
It is also always a good idea to reach out to an expert in a given field, i.e. lawyer or business advisor. It can turn out that the amount of money you spend on professional advice will be significantly lower than the amount you have to spend to fix mistakes made because of a lack of knowledge or experience.

Rafal Mlodzki, Founder and CEO, US Passport Photo

Foster Strong Client Relationships

My best tip for someone starting a small, service-based business is to build strong relationships with your clients. Return clients make or break small businesses—particularly in service-based industries. Providing excellent customer service, being responsive to clients’ needs, and exceeding their expectations can help you build a loyal customer base to recommend your services to others.

Stay receptive to feedback and strive to improve your services regularly to maximize customer satisfaction and retention. Don’t be afraid to market yourself and promote your business through social media, networking events, and other channels to reach potential customers and grow your business. Nowadays, the more channels you market your business in, the better potential returns you will see.

Michael Green, Co-founder, Winona

Craft a Problem-Solving Offer

My best tip for starting a small, service-based business is to create an offer people will want to pay you for, and then explain how you can solve their specific problem(s) based on your experience/skills.

For example, if you’re great at sales, you could become a business coach who focuses on helping business owners do X, like scale to six figures.

A lot of entrepreneurs think they need a certification before they can start their business, but this is (usually) not true. Instead, use your unique background to set yourself apart and build credibility.

Remember: Clients will come to you based on the results you offer, not your certifications.

Luisa  Zhou, Founder, LuisaZhou.com

Use Content Marketing for Expertise

Starting a service-based business means you don’t have a physical product that is the focus of your business, which means that you must market through the distribution of information-rich content. Service-based businesses lack a tangible object to build their marketing around, not allowing for visuals and a tangible feel, and this creates the challenge of showcasing the value they offer.

Therefore, it is critical to use social media and other digital outlets to showcase your expertise through information-rich blogs, newsletters, detailed website FAQs, and even webinars, to demonstrate your abilities and knowledge.

By mapping out a thorough strategy to showcase your services through information-rich content, you will be able to demonstrate your expertise and how you address pain points, and in the process show potential customers the value of your service.

Ryan Rottman, Co-founder and CEO, OSDB Sports

Prioritize Exceptional Customer Service

My best tip for someone starting a small, service-based business would be to focus on providing exceptional customer service.

Providing excellent customer service can set your business apart from your competitors and create loyal customers who are more likely to recommend your services to others. Be responsive to customer inquiries, go above and beyond to resolve any issues, and always strive to exceed your customers’ expectations.

Additionally, leverage social media and online review platforms to showcase customer testimonials, which can help build trust and credibility with potential customers. Finally, always be open to feedback and continually adapt and improve your services based on customer needs and preferences.

Brenton Thomas, CEO, Twibi

Maintain Personal Customer Connections

Keep your customer service human and recognize the limits of automation. Service-based small businesses are built on relationships. Long-term client relationships will offer consistent value and will help turn ordinary clients into brand advocates.

But to maintain those relationships, engage them as a real person. People make connections with people, not chatbots. And if the client is going to offer consistent return value, it’s worth making time for them, be it by phone, in-person, or even just email or text.

In low-value, purchase-based models, this approach would be unsustainable. But in small, service-based models, these “unscalable interactions” largely pay dividends. As Belinda Weaver at Copywriter Matters says, “In our modern world of streamlining, outsourcing, and automation, taking the time to have an unscalable conversation like a personal message, a handwritten note, or a detailed response in a DM creates a meaningful moment.”

Benjamin Graham, Content Strategist, AnswerConnect

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