Advantages and Disadvantages of a Service Based Business

Having a transferable skill can be a quick and easy way to start a home-based business. It is a matter of landing great clients, marketing yourself, and providing quality service. Service based businesses include individuals in fields such as computer programming, public speaking, and consulting just to name a few. However, there are advantages and disadvantages to running a service based business.

Advantages

• Quick way to becoming self-employed
• You can charge more per hour
• High referral rate
• Work from home

Disadvantages

• Time is money (paid by the hour)
• If you’re sick, you won’t make money
• Losing a client could hurt your business
• If you don’t like what you do, easy to get burned out

Service based businesses are a lot like a regular jobs. Your income is based per hour (although you can charge a higher rate) and your livelihood is based on the amount of clients you have. The biggest downside in my opinion is if you do not enjoy what you do. If you do enjoy your career, working for yourself can be fun and you still have the advantage of being your own boss – which is the best boss to have.

Tags: self-employed, service business, consultants, work from home