5 Reasons Not to Start a Home Service Business

Think that running a business is an instant, one way ticket to the easy life? One of the things that grinds my gears most on social media (especially TikTok) are the glut of videos that talk about passive business income and how the mere act of being an owner means you've won.

That couldn't be further from the truth.

The truth is, being an owner of something you started from the ground up means as many sacrifices as it does benefits. It is a thing you will think about non-stop, 24 hours a day, and still will fall into failure.

Does that sound fun? No?

Then let's talk about my five reasons why you shouldn't start a home service business, especially if you don't think you can take heat.

5 Reasons Not to Start a Home Service Business

Some of my reasons on this list will leave people feeling stronger or weaker about them than others. As always, your mileage may vary. But, these were all part of my experiences in starting a business, regardless of how I felt about them at the time or feel about them now.

Long Hours and Demanding Schedule

Running a home service business is far from a standard 40-hour workweek. Expect to work 50-60 hours regularly, including nights, weekends, and early mornings. You’ll wear many hats, especially in the beginning, handling everything from administration to fieldwork.

This relentless schedule can be exhausting and leave little time for personal life. It may be a long time until you build that business up enough to do things like always make sure you eat breakfast with your family. Nature of the beast.

Lack of Benefits

In the early stages, providing benefits such as retirement plans, healthcare, dental, and vision insurance is challenging. All available funds typically go back into growing the business.

This means you might have to forgo contributing to a retirement account or securing comprehensive health insurance for several years, which can be a significant drawback for those needing these benefits.

No Days Off

Owning a home service business means there’s no such thing as an off day. The concept of “quiet quitting” or taking it easy occasionally doesn’t apply. Your income directly correlates with your effort, and the business demands constant attention.

If you prefer a job that allows for regular breaks and downtime, this might not be the right fit.

High Stress Levels

The stress involved in running a home service business is considerable. Besides the long hours and lack of benefits, you’ll be responsible for managing employees. Ensuring that your team’s schedules are full and their paychecks are consistent falls squarely on your shoulders.

This responsibility extends to their families’ well-being, adding an extra layer of pressure.

Personal Financial Risk

Personal guarantees are another significant risk. To secure credit or lease real estate for your business, you’ll often need to provide personal guarantees. This means that if your business fails, your personal assets—such as your home, car, and savings—could be at risk.

The intertwining of personal and business finances can jeopardize your personal financial stability. And that's even before we talk about the fact that you'll probably need to cut your own salary when shoulder season hits and you find a down period.

John's talked about it on the podcast, but 2024 was the first year ever he found himself not cutting his own salary. Consider his success and that statement together.

Is It For You?

While a home service business can be rewarding and profitable, it's crucial to weigh these five significant challenges. The demanding hours, lack of benefits, constant workload, high stress levels, and financial risks make it a tough endeavor.

If these factors resonate with you, it might be worth reconsidering or preparing extensively before starting your own home service business. I think the risk has been worth the success, but you may find you don't agree with me.

Jack Carr, CEO of Rapid HVAC
‍‍https://rapidhvactn.com

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