Earning from Serving: The Profitability of a Service-Based Business

Published on October 2, 2017

Nurse and elderly woman on a senior care centerWho can sell a service?

Anyone.

Anyone can do so because each of us has the knowledge, skills, and experience other people are willing to pay for. Selling a service knows no boundaries, either; your age, educational background, business experience, and even your current financial resources don’t matter.

Rewards vs. Costs of Service-Based Business

On the surface, however, starting a service-based business like consulting or senior care seems easy enough. But, despite what any motivational speaker might tell you, it’s not easy. That’s why 90% of new businesses fail – and many people who fail at their attempt at entrepreneurship end up crawling back to their day jobs. Given the statistics, you’d have to start ten businesses to hit the jackpot!

This is especially true for a service-based business. There will be frustrating projects, difficult clients, long hours, and many other challenges along the way. But if you have the guts, gumption, and what it takes to make it happen, the payoff for turning your passion of serving other people into a profitable business far outweigh the costs. Plus, a service-based startup is already off to more advantages than business ventures of another nature.

The Viability of a Service-Based Business

One of the biggest advantages of having a service-based business is that you need to shell out less capital to start it, compared to starting a product-based business. If you want to offer writing services, all you need to do is create a collection of your work. If you want a web design company, you find clients to design for. If you have the passion to provide care for the elderly, you can franchise a senior care business.

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There is little to no start-up, production, and overhead costs—you simply need to build your reputation and get the word out.

But most of all, you become your own boss while helping other people with a service-based business. The lure of self-employment is the independence and freedom of calling the shots, which are difficult to achieve if you work for others.

Service-Based Business Idea: Senior Home Care

One of the most profitable service-based ventures today is a senior care business opportunity—particularly because of the demographics.

The baby boomer generation started turning 65 in 2011, and in the US, the number of seniors will double by 2050. According to the US Census Bureau, most of the growth will occur between 2010 and 2030, with the number increasing by approximately 2.8% a year.

By 2030, there will more than 70 million people in the country over the age of 65—that’s one for every five Americans.

And as you may know, seniors need more help at home as they age, which means a growing need for a home care business in every community, big or small. More than 90% of seniors would rather age in place than leave their home, as they enjoy privacy, the familiar surroundings, and independence. Plus, the cost of senior housing, such as assisted-living facilities and senior care communities, continues to increase. That makes senior home care an increasingly in-demand service.

Overall, a service-based business like a senior home care agency is an ideal business for those who want to take control of their lives, and make a solid, dependable income while helping others—regardless of how the economy is doing.