Some say it's $400 billion. Other estimate it to be over $800 billion. To put it in perspective... this industry is 6 to 13 times larger than digital advertising. In fact, Google, Amazon, and Bing are fighting to see who's boss in this space.
I'm talking about the home services industry, which ranges from roofing, plumbing, to heating, ventilation, and air conditioning (HVAC). While repairing garage doors or fixing a pipe might not be as glamorous as creating the next social media app, entrepreneurs in this industry often have a better chance at owning profitable businesses for three reasons:
1. The industry is ripe for disruption
We all have heard horror stories of inconsistent or worse still shoddy customer service in this sector. Smart business owners see these challenges as opportunities for doing better business. For example, fighting for a piece of the pie are big players such as Google, Amazon, and Bing, as well as newer startups such as Thumbtack, HomeAdvisor, and ServiceTitan. The bottom line is, technology will help you differentiate in an industry that is still catching up with the digital world. I would even say that you don't actually need to be that innovative to make a wave. Just focus on the fundamentals of what makes customers happy: consistently fast, high-quality work at reasonable prices.
2. The demand for home services will always be there
Regardless of how property trends evolve, people will always need home services. Whether it's for your own stay or for investment, an attractive, comfortable home is going to be one of the most important things in our lives. That means you need regular home maintenance and repairs, let alone any renovation projects. The data plays out: according to IBISWorld (as quoted by FranchiseDirect), we're looking at annual growth rates of between 3.5% to 8.1% throughout the home services industry. It's not mind-blowing growth, but it's steady. Better still? There's even more opportunities in the future, which brings me to my third point...
3. The connected home is the future
Consumer devices and appliances are being reinvented with "smart" functions. Google Home, for example, is a voice-activated speaker that you can use to control your thermostat, stream Netflix, and even order pizza from Domino's. That's cool, but what's even more important to realize is that our homes are probably going to be the first testing ground for these gadgets. Statistics show that the global smart home market alone will hit over $50 billion by 2022. As more and more homeowners start purchasing and using these devices, we'll also see exploding demand for complementary services, for example installation of smart home devices.
As I've shown in this article, the home services industry is actually an immensely exciting, fast-growing space for entrepreneurs looking for their big break. Do keep in mind too that home service industry has its own unique challenges. Startup cost is low in most home service niches -- you might not even need a contractor's license to start your business -- which means that you have more competitors than you would like. It's also hard to find qualified technicians and other skilled professionals in this field, so make sure you're ready to invest money and time into training your employees. But I believe if you can overcome these challenges, and capitalize on the benefits I mentioned, you will be set for business success in the home services industry.