How to launch a home service business: licences, quoting, Google and first customers

1. Licences and insurance: the basics

This is general information, and the rules vary a lot by state and trade. The SBA says most small businesses need a combination of licences and permits, and that what you need from the state, county or city depends on your business activities. Trades such as plumbing, electrical work and general contracting are often licensed at state or local level. Many states, but not all, require contractors to be licensed or bonded. Check your state's licensing board, your Secretary of State's website and your city or county.

Insurance protects you and reassures customers. The SBA describes general liability insurance (injury and property damage claims) and professional liability insurance, and says businesses with employees must carry workers' compensation, unemployment and disability insurance, with details varying by state. If you use a vehicle for work, ask your insurer whether your personal policy covers business use. If you work from home, a home-based business rider may cover a small amount of equipment.

2. What homeowners check before hiring

The FTC's consumer checklist for hiring a contractor tells homeowners to check these things. Make them easy to find on your website and in your quotes.

• A current licence, where your state requires one, with the number shown.
• Insurance certificates they can see.
• At least three recent references for similar jobs.
• Written estimates, so they can compare.
• A written contract with start and finish dates, a payment schedule, warranty terms and how changes are handled.
• Payments tied to completed work, and a deposit within your state's limit.

3. A simple quoting and booking flow

• Enquiry: one phone number and a short form that asks for the address, the job and photos.
• Reply fast: same day if you can. Say when you'll reply on your website.
• Quote: give price guidance on your website, then a written quote with what's included, what isn't and how long it's valid.
• Book: a confirmed date and arrival window, by text or email.
• Do the job, then send the invoice and a short thank-you with your review link.
• Keep a simple list of every enquiry and quote, so you can follow up and see which ones you win.
• If you sign contracts in customers' homes, the FTC notes that buyers may have a right to cancel within three business days, and the contract should include a written notice of that right. Check what applies in your state.

4. Set up Google as a service-area business

Most home service businesses go to the customer. Google's guidelines say a service-area business should hide its address, using the example of a plumber who works from home. List up to 20 service areas by city or postal code; Google says the overall area shouldn't extend beyond about 2 hours' drive from your base.

Use your real business name without extra keywords, pick the most specific primary category (for example “Plumber” or “House cleaning service”), and add photos of real jobs. Our Google Business Profile guide covers verification and the mistakes that lead to suspension.

5. Other listings

Beyond Google, claim your business on Apple Business (for Apple Maps), Bing Places, Yelp, Nextdoor and any trade association directories that matter in your field. Use exactly the same business name, phone number and website everywhere. Apple's setup asks for a name, address and map pin, so check how it handles a business without a storefront before you list a home address.

6. Your first customers

• Tell everyone you know, with a short personal message and a photo of your work.
• Neighbours: a clean, simple flyer or door hanger in the streets around your first jobs.
• Local partners who meet your customers first: real estate agents, property managers, home inspectors and complementary trades.
• Local community groups and your chamber of commerce.
• Ask every customer for an honest review, without offering anything in return.

Getting help with the launch

Business Launch Authority's Business Launch System covers the offer and prices, the website, the Google profile, an announcement and a first-customer plan for local service businesses. It doesn't cover licences or insurance; those are for you, your state and your insurer.

Questions

Sources

• U.S. Small Business Administration: Apply for licenses and permits
• U.S. Small Business Administration: Get business insurance
• Federal Trade Commission: Hiring a Contractor (consumer checklist, PDF)
• Google Business Profile Help: Guidelines for representing your business on Google
• Google Business Profile Help: Manage your service areas for service-area and hybrid businesses
• Apple Support: Add a single location in Apple Business

General information, not legal, tax or financial advice. Rules differ by location; check with your own adviser.