How to Start a Home Service Business in 9 Steps?

The home service business was estimated at around USD 370.86 million in 2021. The industry is expected to rise at a CAGR of 18.91%, and it’s a great time to establish a professional home service business.

But how to start a home service business?

What are the steps involved in starting a home service business?

Can you be your own boss and work in a confined home office space?

Don’t worry. We’ve got you covered.

With the rising competition, you must ensure that you follow the best and result-oriented ways to help you strengthen your foundation and establish a strong control in the industry.

Our team has filtered the most effective steps to kick-start your home service business. So, without further ado, let’s get started.

What is Home Service Business?

A home service business is a type of service business that can be operated from home. Different residential small-scale home service business ideas include HVAC, plumbing, construction, and delivery.

Based on your experience, area, and interest, you can choose a professional home service business to help you provide your customers with an excellent experience and solve their major issues.

You can establish a professional home service business irrespective of the niche using the following basic steps. 

Have a look.

How to Start a Home Service Business?

1. Establish a business plan

You must ensure that you have a professional business plan for your service business that can help you increase your business efficiency and ensure that you follow a specific business path.

A business plan can help you outline a path for your home service business success and enable you to handle aspects like branding, working capital, etc.

A home service business plan can help persuade financial institutions and business partners to scale your business to new heights and back your venture for funding.

A quality home service business should have the below-listed structure.

  • Company’s summary

    The business goals and the different services offered to homeowners should be listed in the company summary. It should include a brief about your business operations and different service-based business sections like finances, marketing, hiring, services, and market research.

  • Market analysis

    You can determine the home service niche and work on the services you want to offer. The market analysis includes forecasts, competitor research, trends, and different factors that are related to your home service industry.

  • Strategy

    You can create a strategy for your sales operations, manage your budget, and create home service business workflows. Using a well-planned strategy, your home-based business can operate with finesse and bypass different future operational issues.   

  • Personnel plan

    The personal plan of your own home service business must outline how to hire home service professionals and a dedicated management team.

  • Financial plan

    A professional financial plan for your home service business outlines your business cash flow, financial projections, and projected business loss and profit. You can set your overheads, fixed rates, and profit that can help you achieve desired financial goals and improve your services business.

Using a business plan you can solidify your basics and create a sustainable home service organization for desired business results.

2. Industry and audience research

You must perform detailed research to handle different aspects of your business plan and that minimizes the guesswork and scope of errors.

Dive deep into understanding your target market and focus on your competitors’ different home service business operations provided by your competitors. It can provide you with an extra edge before kickstarting your home service business.

You can understand the strengths and weaknesses of your competitors, and leverage their weak points to create your strengths.

Also, focus on the homeowners and understand your target audience’s doubts, pain points, and problems. You can improve your marketing and service experience using the data and ensure that you stand out in the industry.

Don’t focus on targeting a wider segment while starting your home service business. Narrow down and follow a vertical approach to increase your business effectiveness and build a loyal customer base.

Analyze the market trends, future technology changes, and other factors that can help strengthen your foundation for successful home service business operations. 

With a better understanding of the industry, competitors, and audience, it can be easier for you to climb up the success ladder and unlock your true business potential.

3. Calculate the pricing model

Without competitive pricing, you can’t ensure the success of your home service business idea. You must ensure you don’t overcharge to lose competitive advantage or undercharge to shrink your profits.

Calculating your home service pricing can deliver profitable home business idea results and help you manage your business cash flow.

Understand the overall average pricing of your industry to add your profit margins and scale your business to new heights. 

Also, optimize your business operations to help you cut down on your expenses and increase business productivity to achieve the desired business outcomes with finesse.

Create a robust brand image and strengthen your presence in the home service industry to build a successful business. 

Once you offer quality customer service and have a decent presence, you can increase your prices to stand out and earn great profits in the industry.

4. Register your business

Stand out from other home service business ideas by registering your own business with your governing authorities. 

Ensure that you can collect the right documentation before starting your home service business to match the document requirements of the concerned authority.

Choose between sole proprietorship, LLC (Limited Liability Company), or a partnership that helps you approach forward with your home services business

Business name

You should decide on your home service business name before you file the business registration documents at the governing authority. 

Check the availability of your business name on the U.S. Trademark Electronic Search System to ensure that your chosen home service business name is not trademarked. 

Your home service business name should represent the brand and should look professional. The business name sets the tone of your business and assists you in attracting prospective customers.

5. Get the required license

You must acquire the required license to operate a successful home service business. Avoid procurement of a required certification or license; you can face hefty fines or be forced to shut down.

You should focus on contacting the governing departments to check the required documentation for processing the license or permit for running a successful home service business.

6. Acquire your business resources

Once the basics are set, acquire the business resources to ensure you leverage your solid foundation and build a robust business ecosystem.

  • Workforce

    You must hire employees that can assist you with your home services and ensure that you scale your business to new heights.

    Delegate the service business aspects to ensure that you can focus on scaling your business and managing different creative business elements. 

  • Funds

    Depending on your home service business structure and scale, you must calculate the total operations and startup costs. Once done, you must figure out how to collect the desired funds to kickstart your service operations.

    You can raise business loans from different financial institutions, ask your friends, partners, and family for financial assistance, or invest your savings.

    You can also use the funds to purchase basic requirements, business insurance, and other home service business aspects.

7. Plan your financial budget

Ensure that you have a dedicated service business bank account to separate your finances from your business and handle your outflow and inflow of money. Manage your finances with a proper plan and ensure you don’t end up draining your decent home service business profit margins because of poor financial management.

Analyze your small business setup costs, equipment needed, general liability insurance cost,  software investments, business taxes, and other operational expenses.

Focus on running a sustainable long-term home service business using planned and professional financial planning and operations. 

8. Spread the word in the market

Increase your business reach and visibility in your target market and follow specific steps to increase your client retention for running a thriving home business.

  • Follow-ups

    Focus on following up with your potential clients once you have completed your first interaction through a dedicated marketing channel. Ensure your marketing and sales team are trained to try different things to entice the cold or warm target audience into becoming long-term clients.

    Many new entrepreneurs and businesses avoid following up via email or a call, which can result in losing the potential client and a lucrative business opportunity.

  • Networking 

    You can join different networking groups to attract more clients and business revenue. Ensure that you build a strong community and home service business presence in your industry that can help you scale your business to new heights.

  • Referral programs

    Being a home service provider, you should focus on delivering professional services to your clients to increase their customer experience. Integrate a referral program that can incentivize your existing customers to onboard new clients.

    It can help reward your existing customers for positive word-of-mouth marketing that can help scale your business operations and build strong relationships with your clientele.

  • Membership plan

    Create a membership plan for your home service business and offer special service discounts and offers to membership holders. It can establish a special community and increase the value of your service business.

    A membership program can be a starting point for your current and potential customers to avail of your business services. A membership plan can increase customer retention and boost your marketing strategy.

9. Strengthen your online presence

Improving your online presence and grabbing the opportunity provided by digital transformation in the business segment. You can attract new leads, save money, run a business from home, and strengthen your online business. 

Stand out from other business owners by integrating professional marketing strategies for your home service business like social media, search engine optimization, online listing, email marketing, etc.

You can outsource your work to different professionals, social media managers, or a marketing agency to focus on your core business or handle one-person operations.

It can help you generate quality leads, and long-term customers, and build a solid customer base. You must deliver a quality customer experience to your customers to stand out and run a sustainable home service business.

Integrate a leading field service management solution that can help you bypass the hassles of home service business management and boost your business’ productivity.

Our team has selected top service management software to help you attract more customers and implement your solid idea.

Manage and Grow Your Home Service Business

Go with FieldCamp or Waste 100’s of $$$ on Service Software with features that you don’t even use.


You can start a successful home service business by performing in-depth research and solidifying your basics. You need to create a business plan, analyze the startup cost, hire workers, secure funding, and procure the required resources for kickstarting your small-scale home service business.
Managing your home service business can become an overwhelming task if you don’t have modern-day tools. You can use a professional field service business management software to help you manage your home service business and provide an extra helping hand. You can boost your business productivity and deliver a quality customer experience that can minimize the customer churn.
A quality service management software can remove the complexities of your home service business and ensure that you can boost your business to new heights. It can help you bypass the dependency on manual business management and help you automate your home service workflow management.

FieldCamp Can Strengthen Your Home Service Business 

A professional field service scheduling software, FieldCamp can help you establish a robust business ecosystem that can help you stand out from other home-based businesses and connect with your target customer to generate revenue and profits.

You can manage your business remotely and automate your job scheduling, dispatching, and other service management tasks. 

You can bypass the manual inefficiencies and streamline your service business operations to achieve the desired outcome.

Author Bio

Gaurang Bhatt

Gaurang Bhatt is a techie in himself with an ability to solve problems technically and present solutions in the form of a product. He is one of the pioneers to curate FieldCamp with his 15+ years of knowledge and expertise in providing solutions to home service industries. Gaurang aims to overcome challenges faced by service business owners through software solutions and blogs.