Service 101 - Financial Expectations

Setting some realistic income expectations for Home Service business owners

We know from the last post that targeting the right right customer base for your service is crucial. Not only because we want to maximize our ROI on ad-spend from a closing perspective, but also for maximizing revenues and average ticket sizes.

Something prospective business owners need to understand is that a customers willingness to pay for certain service varies significantly. Two people may need your service, but one of them is probably willing to pay much more. You need to identify that customer and focus your efforts there.

In future posts, we will go into more detail on this topic. But for now, we’re going to cover what you can actually expect to make before you target that customer. These will be general numbers here for Solopreneurs & Entrepreneurs. Please understand that this is to set expectations and is HIGHLY dependent on a wide variety of factors.

(This will also serve as a way to approach or evaluate business performance on a per employee basis.)

IMPORTANT: The numbers we discuss here are *general* and not indicative of every market. Your location may vary. The point of this information is to give you an insight into potential incomes for your chosen service. What you are willing to charge/attempt to charge for your work is up to you.

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Solopreneur vs Entrepreneur Incomes

Before we get into specifics on a per-service basis, we need to go over some general principles to work off of and that starts with once again distinguishing between Solopreneur & Entrepreneur mindsets.

This is the most important concept to grasp (and too many it’s probably rather obvious):

1. A Solopreneur’s potential income is going to be capped. There’s only so much work you can get done by yourself.

2. On the other hand, as an Entrepreneur your potential income is technically infinite (although it’s important to be realistic here).

If you’re still not quite understanding why this is the case, it’s because a solo-operators income is based solely on their own performance.

Those who choose to scale their business (Entrepreneurs) make their money based on their employees performance.

You can have an unlimited amount of employees, but there’s only one of you. If you want more money, you have to get more jobs done and you can’t do that without hiring employees.

Whether the extra income is worth the additional work/risk that comes with managing employees is up to you. All we’re trying to do here is to get you to understand the difference in potentials.

So what exactly is a realistic number to shoot for? Let’s break it down.

(Before we do so, understand that ultimately this all comes down to how much you want to work.)

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