Setting up A service Based Business For beginners
Although there are exceptions where both entities are entwined into one, most basics of the business is built around one unifying category so that the intentions and goals are clearly and visibly set.Suzanne Clark
This distinction allows the individual to then decide of the accompanying tools that should be chosen for the purpose of enhancing the business experience and also to contribute positively to the ease of running the business entity.
Most service based forays are labor intensive which the business entity revolves around. This is either packaged as the selling of expertise in a particular field or the selling of the actual “engines” that produce the desired outcome that bring in the revenue.
Either way the quality, efficiency, attention and detail that is exercised within the business are the eventual elements that are going to make or break the business foray into the revenue churning mechanism.
Basically offering the time frame required to create a particular service or to provide the content of the project itself is how the cost factor is calculated and the profits are gained in the service based business.
Therefore, the individual would have to factor in the cost of business entity by the labor intensive tool it provides, in order to provide a suitable base line for the eventual calculation of the profits and the pricing suitable to be demanded.
Alternatively the value of the service based business can be calculated on the value of the service being provided in a consultancy capacity which is evaluated against the insights the said service will bring to the company with the intention of creating a system thereby the said company is able to save or be more cost effective.