Should You Start a Second Home Service Business?

It is easy to say that small businesses are the backbone of the American economy because 99.9% of all U.S. businesses are classified as “small businesses” (those with 500 or fewer employees) by the U.S. Small Business Association. But how many businesses are truly small? According to data from the U.S. Census Bureau’s 2021 Annual Business Survey, 14% of small businesses have no employees, 49% have 1-4 employees, and 16% have 5-9 employees. A Bank of America survey indicates that about 26% of small business owners own multiple businesses. In the thriving home services business market, many small business owners have asked, “Should I start a second home service business?”

How Large is the Home Services Business Market?

There are about 2.5 million home services businesses in the U.S. The number of home services businesses has grown significantly in recent years because more households include dual-income professionals, and more Americans are approaching or entering retirement, thus increasing the attractiveness and need for multiple home services. Yelp reported an all-time high of new business openings in 2023, with the greatest growth in the home services business category. A small business owner who wants to start a second home service business has many good opportunities to choose from.

Is it Time to Expand?

There may be some very good reasons to start a second home service business: 

1. Your business is strong and operating well. You have a capable team, and your personal involvement isn’t as demanding as it was previously. 
2. You aren’t as challenged as you were in the startup of your current business. 
3. Your inspiration and vision are pulling you to grow in an additional way.
   You are ready and eager to start something new. 
4. There is apparently a strong demand for a different type of home service business in your area in a category that could be profitable for you. 
5. You see the advantage of adding a service line that could diversify your income and create an overall stronger revenue stream. 
6. Adding a second home service business could strengthen your marketplace position and increase your customer base and customer retention. 
7. If your current home service is seasonal, adding a second complementary service could provide more consistent income during the year. 
8. You are ready emotionally to take a new risk. 
9. You have a strong team that can help you grow with a new business. 
10. You have or can get financing to start a second home service business.

Before You Start, Ask These Questions

Here are some smart questions to ask yourself before starting a second home services business. First, do I really want to operate a second company? Second, can my existing business run successfully with less of my involvement? Third, how will the additional business impact my current team? Fourth, can I access sufficient capital to start and maintain a second enterprise? Fifth, how can I track and balance my time? Sixth, what legal structure makes the most sense? Seventh, what kind of outside coaching and professional services do I need to help me?

Seek Professional Business Coaching Assistance 

Contact Blue Diamond Consultants for coaching services specifically designed for home service business owners. Our coaching services are based on extensive experience through previous success for home service provider businesses.