1.7 billion people on Earth work in the service sector
According to National Geographic data. And this is one of the most sought-after areas of activity. Business in the service sector is only slightly inferior in popularity to trade and is significantly ahead of businesses related to production in this sense.
And there is a fairly simple explanation for this state of affairs - unlike trade or production, which necessarily require certain initial investments, it is quite possible to open a business in the service sector without investments. In order to provide services, often enough only their own knowledge and skills, as well as the minimum budget for advertising. Although you can do without it.
For example, today, many hairdressers, make-up artists or manicurists leave the salons "for free bread", having gained a certain client base. At the same time, they do not have to invest in promoting or renting premises: they can provide services directly at home or visit the client, and new customers can be recruited through social networks. And the influence of “word of mouth” should not be underestimated here: the contacts of a class master are something that potential clients are actively hunting for themselves. All the same is true for all other professionals in the service sector: lawyers, PR people, tutors.
After some time, having earned a certain amount of money with your microbusiness, you can move on to more serious entrepreneurship - open your own beauty salon or legal consultation without getting into loans.
The main advantages in the service sector for me are the lack of material investments, the possibility of self-realization in my favorite business and workload planning. But I do business alone, including taking on advertising and working with clients. And this means that I constantly need to be in touch, and this is not always easy.
Another reason for the popularity of the service industry is that one's skills can be sold dearly. Very expensive. Although, of course, not all specialists are equal. For example, a manicurist who is just learning his craft works for a nominal fee, and someone who has been working for a long time and can do something special takes much more money for his work. Or a lawyer who is able to help in especially difficult cases will “cost” much more than one who takes only stereotyped cases.
In a word, the cost of certain services may vary depending on the level of skill, as well as on competition in the chosen niche and the literacy of the built marketing strategy.
By the way, if you are a marketing genius, this fact will allow you to bring your offer in the service sector to such a level that it will give odds to both trade and production in terms of profitability. If you can create a wow effect, sales will go very actively. It is worth mentioning that such marketing games can be enjoyed by everyone.
Finally, a service business is often much easier to scale than a retail or manufacturing business. Indeed, in order to increase the volume of production, you will have to purchase new equipment, mount it, and carry out commissioning. All this requires money injections and serious time costs.
In sales of goods, things are no better. In order to cover a new region, you will have to study the market, find a suitable place for placing a store, carry out repairs, “settle” all matters with inspection authorities, purchase and deliver goods to a new point, and hire sellers. All this will again take your precious time and money.
But scaling a business in the service sector, for example, by opening a branch of a law firm in a neighboring city, is much easier. You just need to put in place a person who will receive citizens' appeals and transfer them to the head office, and advertise.
Despite all the advantages, the business in the service sector is far from the easiest.
Working in services is less difficult than in the same production: there are no complex requirements such as advanced technology, few approvals from regulatory authorities. But the services sector is not available to everyone: in order to provide a very satisfactory service, you must make a lot of effort to be distinguished and to be able to compete in this field, because working in services is like any other business.
The main problem with working in services lies in the fact that the influence of the human element can be very strong within the service sector. Let's face it: In case you are a mediocre professional, or now you no longer figure out a way to speak politely to clients, while presenting your service offerings, your business will not be successful for long. It will be no less difficult in the case of hiring specialists in the service sector. It is difficult to select specialized workers.
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