How to start a service business to replace your income step by step


abbey ashley

Starting a service business on the side is one of the fastest ways to earn extra income. It’s flexible, low overhead, and you can probably start with skills you already have.

“I had a lot of drivers,” Abbey Ashley told me about starting her own service business in 2013.

Abbey began offering her services as a virtual assistant and connected with her first clients at local networking events in Washington, D.C. By the time I finished her maternity leave – just a few short months – Abbey had booked enough work to avoid having to go back to the job she hated.

Plus, he only had to work 20 hours a week to do it, and he could work from home.

There are almost no barriers to starting a freelance services business, and startup costs are minimal. (All Abbey did was do business cards for the network.)

Actually, it was a service business, in my case a house painting business, which was one of my first entrepreneurial ventures.

Over time, Abbey grew her virtual assistant business from $20-30 an hour to her own small virtual agency, to $75 an hour and higher for some specialized work.

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From Virtual Assistant to Service Business Trainer

Before long, questions started coming from friends and peers:

  • How can I do what you do?
  • How can I work from home and set my own hours?
  • How can I do what I enjoy?

In response, he developed a complete training program for virtual assistants. He has helped and built thousands of people to start their own service businesses a thriving community of free virtual assistants.

If you want to dive deeper, check it out Free training “Become a Reserved Virtual Assistant”.. (This is an affiliate link; I’ll get a commission if you buy his full program.)

how to start a service business

What Service Can You Offer?

“I didn’t come in with a ton of skills,” Abbey explained, “but I started looking at what other business owners needed.”

Some of the first things he started doing for business owners:

  • Posts on Instagram, Facebook and other social media platforms
  • Writing blog posts and updating website content
  • Management of appointment bookings and phone calls

Many of the tasks that business owners need to get off their plates aren’t rocket science. He was able to do almost anything that was asked of him with the skills he acquired from his day job, and the employer trained him whenever he was given something new to do.

“Even if they’ve never been hired for the role before, there’s a process for it,” Abbey said. This is my experience hiring freelancers. In most cases, I have a process that I’m already running, but I want to start delegating it.

3 column method

Abbey recommended this exercise to start creating a menu of potential services. Make 3 lists on a 3-column sheet:

  1. Skills you enjoy.
  2. Skills you don’t like.
  3. Skills you don’t know how to do yet but are interested in learning.

I think you’ll end up with a wider range of skills than you think.

The Free Market Method

If you’re struggling for ideas, visit a great marketplace for freelancers like Upwork or Fiverr. Check out the categories and subcategories on these sites and the skills freelancers offer. I am sure you will have a number of skills as well.

One of the interesting points – and the “down the niche” that goes against the usual advice – was Abbey’s recommendation to start as a general virtual assistant. In the early days of your business, let customers drive the role you play, and over time you’ll learn what you really love and are good at.

How to get your first customers in your service business

First of all, Abbey advised him to join Virtual Savvies Facebook Group. At press time, there are over 30k members and job opportunities are shared daily. Additionally, it’s always helpful to have a support network of other virtual assistants to talk to.

Start with your network

Abbey also recommended starting conversations with friends and family about your new service business. Even if they’re not in a position to hire you, there’s always a chance you know someone who is looking for help. Word of mouth is a powerful marketing tool.

Don’t limit yourself to just the online space. As you go about your day, you may run into local people who could use your help. It always starts with being curious, listening, and trying to find potential areas in their business where you can serve.

Abbey also said put yourself out there and let employers know what you’re doing. “Most of us know at least one small business owner, talk to them first,” says Abbey. In most cases, they will be excited to see someone else take the leap into entrepreneurship!

Local Meetings and Networking Events

Check your location Meeting groups too. There are always networking events for entrepreneurs and other meetups you can attend to introduce yourself to other entrepreneurs and business owners.

Abbey said you can just introduce yourself and explain what you do, and if they need a virtual assistant, they’ll think of you. “It often sells itself,” Abbey said.

High-level customer targeting

Abbey shared what she calls “High End Customer Targeting.” This is the “give first” method he uses to land his biggest client and helps his students land well-paying clients as well.

If you know someone you’d like to work with, there are some steps you can take to get noticed and maybe even get hired. If you haven’t already, start by paying attention to them. Read their blog, listen to their podcast, and more. They have a chance to introduce holes and pain points in their work.

For example, they may mention that they have never had success using Pinterest. If you have experience with Pinterest, this is the perfect opportunity to offer them a service to solve their pain points.

Create some Pinterest-optimized images for their latest content and email them for free. This is a great way to cut through the clutter and put value first. If they’re interested, you can mention that you offer Pinterest management services.

Even if it doesn’t turn into a job with that client, it usually turns into a relationship. Making a positive first impression like this is a good way to get noticed in case they know someone else who might use your services.

Evaluating Your Service

When Abbey took on her first client, she had mixed feelings. He was happy to have a client, but knew he had to work out some details like contracts and payments.

He determined his prices by researching what other virtual assistants were uploading and how they rated their packages. It’s down to $30 an hour. For general virtual assistants, he recommended starting no lower than $20 an hour.

Abbey started selling “hour packages” because that’s what other VAs were doing. He sold packages of 10, 20 or 40 hours and drew up a contract with payment details and terms.

For new service entrepreneurs, he recommended working backwards from your target income and factoring in how many hours you have to work and setting aside money for taxes.

As a legal entity, Abbey worked as a sole proprietor when she started as a VA, and her location only required a $30 home business permit. Of course, rules and regulations vary from country to country, state to state, and city to city.

How to expand and scale your service business

Working as a virtual assistant or any service business is still a time-for-money trade, which puts some entrepreneurs out of business. “I already do it at work!” Abbey countered, “Yes, it’s still time to trade for money, but you can do it from the comfort of your home. Without a 2 hour commute.”

There are several ways to grow a service business, including:

  • Raising your rates
  • Creating “produced” packages
  • Creating a digital product DIY guide for customers who don’t want (or can’t) work with you one-on-one.
  • Hiring subcontractors to perform work.

“Many of my students create a mini-agency,” Abbey explained. This was the model he followed in his virtual assistant business, resulting in a team of 4 subcontractors. As a project manager and team leader, you are responsible for work order, client communication and overall process management.

Next steps

Abbey’s #1 tip was to give yourself some grace. We will make some mistakes and face some challenges along the way; that’s life! Give yourself some grace, turn to the next thing, and move on.

If you want to dive deeper, check it out Free training “Become a Reserved Virtual Assistant”.. (This is an affiliate link; I’ll get a commission if you buy his full program.)

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