How to decide on a service business to scale in a specific market?

[Geekour]

I can't seem to decide what service industry would be best to scale ESPECIALLY in my market. For example nobody is going to start a snow blowing business here. Also I feel like any highly specialized fields will be a hassle to train employees correctly and will be the downfall to scaling.

@minivanman Gave me a great answer in another thread. But I still need help deciding on what would scale BEST in my area. I have in mind lawn care, home cleaning (maids), window cleaning, power washing, gutter cleaning, mobile car wash, pool cleaning, senior care (I am an RN) and carpet cleaning.

Some other "weird" ones I had in mind are head lice removal service, cloth diaper cleaning/delivery.

I know the problem with service industries (employees) and this is why I need your opinion on a model that I can scale in my market where employees will be less of a problem to stop me from scaling.

 

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[Boo]

I understand the path your mind is going down, you're looking for the business where finding competent staff is the easiest. But if you take a look at those businesses, is it any surprise that those are some of the most competitive local industries?

Of course not. If you look at companies which have succeeded in complex or competitive markets over time you'll notice that they typically have solved a complicated problem. In this case finding and training nurses to take care of people in senior homes is tough, you're exactly right. But that's why most senior homes suck and there is often an opportunity for a talented entrepreneur to come up with a better solution.

The path of least resistance is typically only the path of least resistance in the earliest stages. After which you're met head on with a swarm of competitors who also took the path of least resistance, which isn't to say that you can't succeed in any of those markets. But there are other problems in these businesses and unless you have something that you can bring to the table that's better than the other business owners in your market, how do you expect to win?

I've run a business in a field similar to those listed where finding and training staff is easy and you can do really well, but I'm not convinced that it's any easier than going into a field where finding employees and scaling it is harder. There are different challenges. Your goal as a business owner is to find a solution to a problem that others in your market haven't and then to exploit it to the maximum, at least that's the way I see it in these local market businesses.

If your set on doing a service business like this, just pick a service that you can offer year around where there is competition that you think you could beat and the financial upside is worthwhile. "Best" is extremely subjective and you're the business owner, decide yourself and get started sooner rather than later.

 

[Geekour]

Thanks for answering! From what I have read on the forum it seems like some people have made it work although it is not the BEST model with some hustle it seems to bring in money and scale and even sell the business eventually decently if that is the path I choose. The people that open these businesses usually do not do a good job marketing online. Although these businesses can break the commandment of entry and anyone can open it I feel like they are a great starting point.

 

[ZCP]

Get started doing something. Try to fail miserably by the end of next week. Then you will have answers to your question.

 

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[Geekour]

Get started doing something. Try to fail miserably by the end of next week. Then you will have answers to your question.

True, but I would hate to take on a SBA loan or my money and find out my service has no need in my market. I need a way to test the market for these services without losing the money invested into equipment.

 

[Boo]

True, but I would hate to take on a SBA loan or my money and find out my service has no need in my market. I need a way to test the market for these services without losing the money invested into equipment.

If there are a bunch of companies in your area offering the same service, there is clearly a market right? You're just scared of taking the risk. That's business, it's not safe.

 

[minivanman]

If you are scared to buy a mower thinking you might not get jobs, a temporary solution might be to sub yourself out at first. I used to know a guy in Houston, I think he is in west Houston by Katy, the name of his lawn business had something to do with a goat. I'm headed to the shower and then to bed but I will look it up tomorrow, or you can. Anyway, all he does is hire subs to work for him. Atleast if you had the equipment and decided you didn't want to put in the effort to get customers, you could either sell it or work for him some to make your money back on the equipment.

You do NOT need any type of loan to go in to the lawn business. If you don't have the money for a mower, go work for a lawn crew on Saturday's and then deliver pizza on week night to save the $1500 (or less) it takes for the equipment. LOTS of GREAT used equipment out there.

 

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[minivanman]

Damn, so all I could do while taking a shower was try to think of what the hell that business name was, so I had to look it up lol. Here is the link. I quickly scanned and didn't see where they talk about using subs, but he does. Affordable Texas Lawn Care | 2 Guys and a Goat Lawn Service

 

[Geekour]

Damn, so all I could do while taking a shower was try to think of what the hell that business name was, so I had to look it up lol. Here is the link. I quickly scanned and didn't see where they talk about using subs, but he does. Affordable Texas Lawn Care | 2 Guys and a Goat Lawn Service

LOL. I feel bad for making you think of that during your shower. You're awesome. That website looks ancient could use some work but it seems like they are up and running so that must mean it still makes $$$.

 

[Fastlane Liam]

I understand the path your mind is going down, you're looking for the business where finding competent staff is the easiest. But if you take a look at those businesses, is it any surprise that those are some of the most competitive local industries?

Of course not. If you look at companies which have succeeded in complex or competitive markets over time you'll notice that they typically have solved a complicated problem. In this case finding and training nurses to take care of people in senior homes is tough, you're exactly right. But that's why most senior homes suck and there is often an opportunity for a talented entrepreneur to come up with a better solution.

The path of least resistance is typically only the path of least resistance in the earliest stages. After which you're met head on with a swarm of competitors who also took the path of least resistance, which isn't to say that you can't succeed in any of those markets. But there are other problems in these businesses and unless you have something that you can bring to the table that's better than the other business owners in your market, how do you expect to win?

I've run a business in a field similar to those listed where finding and training staff is easy and you can do really well, but I'm not convinced that it's any easier than going into a field where finding employees and scaling it is harder. There are different challenges. Your goal as a business owner is to find a solution to a problem that others in your market haven't and then to exploit it to the maximum, at least that's the way I see it in these local market businesses.

If your set on doing a service business like this, just pick a service that you can offer year around where there is competition that you think you could beat and the financial upside is worthwhile. "Best" is extremely subjective and you're the business owner, decide yourself and get started sooner rather than later.

That was an incredible post +REP

 

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[ZCP]

True, but I would hate to take on a SBA loan or my money and find out my service has no need in my market. I need a way to test the market for these services without losing the money invested into equipment.

Get started by learning how to start a business. MVP, sales, prove a market....... businesses don't start with an SBA loan.

Instead of finding reasons why not, start finding ways how to......

 

[LittleWolfie]

How about a software product to solve a common problem among RNs?

 

[Fastlane Liam]

How about a software product to solve a common problem among RNs?

RNs?

 

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[minivanman]

RNs?

RN = Registered Nurse

What is an RN's common problem?

 

[LittleWolfie]

RN = Registered Nurse

What is an RN's common problem?

Ask @Geekour

 

[Fastlane Liam]

Ask @Geekour

Yeah this is a good point. OP says hes a RN

 

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[minivanman]

Yeah..... I'm just waiting on him/her to answer what problem(s) an RN has

 

[Geekour]

In the US insurance usually covers wheelchairs as durable medical equiptment for patients post-op needing it long term even short but lots of patients like in pediatrics need special seating that is not covered. For example kids with partial hip dislocation or scoliosis in their back. This requires a molding process. Without a special chair their conditions deteriorate. Positioning is key. Staffing is a constant issue at hospitals and home health. Nobody likes paying nurses overtime so maybe some staffing software to organize and get new hires. Finding a good hospital or agency is a struggle these days. Also charting systems are always in need of improvement. Senior care market is huge right now whether it be assisted living services or products catering to seniors like ramps to their doorway or handle bars. Another thing that comes to mind is the lack of apps and toys for developmentally delayed kids or various stages of autism. The goal of nurses is prevention of harm (ex worsening condition), patient teaching, and advocating for patient rights and making sure they are safe whether at home or hospital.

 

[LittleWolfie]

Staffing software is an interesting one because there is lots of open source shift scheduling and ATS recruitment software. So it is only a small improvement or maybe even promotion of pre existing product.

Not sure about insurance, but sounds like 3D printing a seat cover could be a solution for lowering costs of seat production.

Edutech app wise, sounds like you need someone with a good experience and knowledge of delayed kids, and the kind of interactions that would be good for them. Maybe some game that increases it's own difficulty level based on the score the user gets.

 

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[Fastlane Liam]

In the US insurance usually covers wheelchairs as durable medical equiptment for patients post-op needing it long term even short but lots of patients like in pediatrics need special seating that is not covered. For example kids with partial hip dislocation or scoliosis in their back. This requires a molding process. Without a special chair their conditions deteriorate. Positioning is key. Staffing is a constant issue at hospitals and home health. Nobody likes paying nurses overtime so maybe some staffing software to organize and get new hires. Finding a good hospital or agency is a struggle these days. Also charting systems are always in need of improvement. Senior care market is huge right now whether it be assisted living services or products catering to seniors like ramps to their doorway or handle bars. Another thing that comes to mind is the lack of apps and toys for developmentally delayed kids or various stages of autism. The goal of nurses is prevention of harm (ex worsening condition), patient teaching, and advocating for patient rights and making sure they are safe whether at home or hospital.

Ding Ding Ding
Theres so much oppurtunity in that one paragraph

 

[ZCP]

If all that is 'holding you back' is an idea, stop reading this thread and dm @Geekour . Now!

 

[ZCP]

@Geekour What can you get started doing this week?

 

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