There are a lot of definitions of service-based businesses that sort of fog the real meaning behind the term. Some people completely restrict service-based businesses as an online niche while other do the exact opposite. This article is a comprehensive guide that will explain everything you need to know about service-based business and starting one. So, let’s get right into it…
What Is A Service-Based Business?
So, basically, a service-based business is any project where you’re charging a specific cost in return for your efforts. A common example of a service-based business would be the services of a plumber or a cleaner. Both of the professionals are offering their services. But, there is a second type of service-based business too and it is completely on the web. These projects are completely online and the payment is also released online. A good example of this would be freelancing sites like Upwork or Fiverr. There is minimal contact between the buyer and the seller and this is the category that we are going to focus in this article. Now, we’ll be explaining service-based businesses a little more and getting exactly into why you should start one as well. We’ll also discuss some of the highest paying businesses around the world, for instance, website designing in Dubai is one of the hottest web-based jobs there. Grab a pen and paper because you need to write this stuff down.
How is Service-Based Business Different from Product-Based Business?
A good way to understand the difference between the two would be to consider a site like Upwork and an online e-commerce store like Amazon. Upwork is connecting buyers and sellers and the transaction takes place for a service. But, Amazon charges money for a tangible product. A good example would be a digital marketing agency in Dubai, to advertise your business in Dubai, you can contact such agencies and they’ll do it for you, it’s that simply as service-based business; And, the example for product-based businesses is pretty obvious so we’re not going to dwell on that.
Benefits of Running a Service-Based Business?
So, why should you even invest your time and money into a service-based business. Most people don’t take earning over the internet pretty seriously, and online service-based businesses also fall in the same category as physical or in-person service-based businesses. In order to clear the air, here are six basic reasons why online service-based businesses are much better than your ordinary business.
1. Minimum Investment Required
This is a great problem for young entrepreneurs entering the world of business. They have to struggle for their funds and trade stock shares for them. This puts them in a precarious situation where they are the CEOs, but even the power of their title is entirely neglected because the true decision-making rests on the shoulders of the board. This is where online service-based businesses are ten times better. They require almost close to nothing to start. If you’re using a freelancing site, it’s entirely cost free. However, if you’re aiming for your own business, you’ll have to pay for a domain and web hosting. All of that will cost less than $100. If you’re also someone that’s trying to earn from your own business but don’t have to cash to startup, then service-based businesses might be exactly what you need.
2. An Unlimited Income Potential
If someone tells you that earning through the internet will only provide chump change, then they’re entirely wrong. There are hundreds of folks that have a six-digit salary with just their online business. To clarify our point, here’s a freelancer named Joel Young who also goes by the name of DJ Young. He’s in the whiteboard animation niche and is making five digits PER MONTH. That’s right, this guy was neck deep in debt and what did he do? He left his full-time job to devote all of his attention to his work as a freelancer and look where he is today. There’s really no barrier or limit as to what you can earn online. The possibilities are endless and your income is only restricted by how much hours you’re willing to work. Remember friends; the sky is the limit.
3. You Can Get as Much Help as Necessary
Most folks typically start off on their own. Searching for clients and using their own skills and mastery to complete those projects. But, when you start growing, you’ll receive dozens of clients everyday and dealing with them all can get pretty stressful. This is where you have the free will to hire someone else to do your job. This little trick is called outsourcing as most of your already know. The profit margin won’t be as much as when you were doing it yourself. But, you’ll be making a decent amount of money with almost no effort. The only work you’ll have to do is talk to the clients and copy paste their instructions to your employees. Most of the digital marketing agencies in Dubai are currently using extra employees to outsource their jobs and maybe you should too. However, it’s entirely up to you, you can bear the burden on your own, or you could get some extra shoulders to help out.
4. Be Your Own Boss
The sole reason why the majority of adult freelancers leave their full-time jobs is because they like to be their own boss. When you’re running a service-based business, your decision is the only one that matters. You’re the employer, the employee and even the guy that pours your coffee. You can take a vacation whenever you like as take as many days as you want. We know this level of free-will is bringing water to the mouths of most 9-5 workers reading this. But, yeah, it’s entirely true as well as challenging.
5. You’re Creating an Asset
This is something that a lot of people don’t even understand and it’s definitely one of the most underrated benefits of creative a service-based business. If you think about it from a market viewpoint, you’re not creating a business, you’re creating a company. That company, just like Facebook, Google, Samsung, can be sold and acquired for a lot of money, and when we say a lot, we mean A LOT. Even a regular company providing website designing in Dubai can be sold for millions. If one day, you wake up and think that you’ve made your business reputable and selling it will be a huge paycheck that could keep you fed for the rest of your life, then by all means, go ahead and start talking to potential buyer. Negotiate with them and we can guarantee that you’ll be getting a price you won’t say no to.
6. You Could Choose to Do Absolutely Nothing
We talked about how you could hire other people to do all the work for you, but there’s still a tiny bit of a problem. You still have to talk to all the clients and even search for them when you’re low on work. This might seem like a small job, but it could be a lot of work. Fortunately, there is are people that go by the name of Virtual Assistants. These assistants, as the name suggests, will be on the internet and they can look after your entire business. They’ll handle the front and send everything to the employees at the back. This way, you’re creating a completely automated business that is literally generating money on its own.
What Are the Most Profitable Online Business Ventures?
There are literally hundreds of niches out there but, in our expert opinion, the following are the highest paying ones.
- Digital Marketing
- SEO Services
- Social Media Marketing
- Search Engine Marketing
- Website Designing
- Website Development
- App Development
- Online Marketing Services
- Local Business Marketing
Obviously, each country has its own trends. SEO Services and Website Designing in Dubai are one of the country’s top paying professions since every company needs a website and SEO to rank the website up. If you’re trying to target an international audience, then scour the web and try to find which services the folks of that country are requesting at the moment. In the United States, there’s a greater need for content writers than any other niche. In England, just like Dubai, clients are looking for experts in the field of web development. As we said, every country has its own trend, and if you’re trying to start an international business, don’t be afraid of providing multiple services from the above list. The process will be slightly complicated because obviously, you can’t have every skill. But that’s good too it will give you a glimpse into all your related services and opportunity to learn while you earn.
Finally, we wish all of you a very good luck with your venture, if you have any question regarding your startup please put them in the comments below and we will try to answer as many as we can. Thank you so much for all your time.