5 Challenges of Running a Service Business

High productivity along with technological developments makes time seem even shorter. This was what initially triggered the development of various service businesses. For this reason, the trend that is considered to have grown rapidly in recent years is the service business. The service business opportunity is also considered minimal risk, you do not do a production because the product being sold is a skill or skill. Large capital in a business in the service sector is also not mandatory because limited capital can also run your business, depending on the type of service you choose.

Although there are many business opportunities by taking advantage of various types of service businesses, it is possible that you will also encounter several challenges when running this business. In order for your business in the service sector to run well, start preparing from the basics that often become obstacles for business people. What are the challenges that you need to pay attention to?

Provide service that is excellent for customers

In running a service business, you could say that customer service is the most important thing besides the service product itself. In the early days of running a service business, maybe you will find it difficult to find customers. However, you must still provide good service. If there are people who ask questions on your social media accounts, respond as soon as possible. If there are consumers who complain, listen carefully and make it a lesson to be even better.

Of course there are many ways that you can do in providing a service that is excellent against the customer. The challenge lies in the different characteristics of customers, so that one method sometimes cannot be applied to all customers. The key is to always use positive words to show that you empathize with their complaints.

For example, let's say you own a graphic design service business. Then, there is a client who asks to make a logo design for tomorrow. In fact, you cannot make sudden requests like that. However, don't tell me you can't do it. You can use a sentence that remains positive like this, “We can finish the logo the day after tomorrow. If you wish, we will immediately send you a cooperation agreement form . "

Choosing the right marketing strategy

When compared to businesses in the goods sector, marketing in the service sector can be said to be more challenging because you don't have physical goods to promote. However, in the digital age like now, there are many ways you can do service business marketing . One of them is through the website. In the website , create a new page specifically for the blog. Then, create blog content that is still related to the service sector you offer.

For example, if you sell digital copywriting services , you could write articles about digital marketing. Don't forget to include keywords and apply SEO strategies to the entire content of your blog. That way, when someone types in certain keywords into a search engine, your article has the opportunity to appear in the top row. They will read your articles and in the end explore your website even further. The amount of traffic increases and you can direct website visitors to use your services.

Apart from the website, you can also take advantage of social media such as Facebook, Twitter and Instagram. Facebook and Twitter are usually used more to interact with customers and accommodate their feedback . You can also use both platforms to announce information related to your service products. Meanwhile, since you don't have a physical product to photograph and upload to Instagram, you can take advantage of this one platform to show behind the scenes of the office atmosphere, give short tips through a good design, or hold a contest. In this way, your audience's awareness of your brand can increase.

Poorly managed recording of financial reports

Many entrepreneurs with brilliant ideas, but do not master the financial sector well. This could cause internal chaos at a later date. Consider a few things: how do you create an invoice to the customer and ensure that the progress for the invoice is recorded in full? Then, what about checking financial transactions at the bank? Specify a check period so that your time is not wasted on matching transactions. One more thing, do you have a neat and safe financial data storage system? If your service business starts with a small staff but with an increasing speed of demand, you should also pay attention to the flow of this financial statement recording.

Facing cash flow issues

Likewise with cash flow problems . Having capital with assets certainly makes business people calm, but is this money circulation going smoothly? Most startup business people stumble across this. Although you will enter a business in the service sector that does not require the production of an item, you also need goods to support the quality of your work. This is where careful monitoring of the company's financial condition is needed so that your cash is in a stable number .

Forget handling taxes

One more thing that is often overlooked, especially by those who are new to the service business, is tax processing . Especially when you are in the online service business . Tax deductions in daily financial activities and tax management are sometimes neglected because they lack calculation or do not understand the ins and outs of the tax itself. If you have several employees with a monthly payroll system and their salary amounts are eligible for income tax deduction, you should not forget this either. Apart from being important to you, withholding tax proof is also required for employees to report their annual taxes.

When you intend to start a trading business, you should immediately take into account the tax issues and salary payments of your employees. When your business has grown rapidly, the system you built from scratch is neat and does not cause financial confusion in the future.

In starting a service business, you certainly don't want to spend a lot of time compiling an administrative system, including financial records to tax calculations.