Hey! Here, you will apprehend the fastest growing on-demand marketplace, which is the home services marketplace. Generally, looking after the household chores is exhausting. Moreover, some of the household chores related to maintenance, revamping, etc., need assistance from trained professionals. But searching for a trained professional who can handle household chores is more of a laborious task.
Here is where the on-demand home services come into play. Well-trained home service professionals are just a call away. Similar to the way food deliveries are bringing in convenience, on-demand home services do the same. It’s all about booking a skilled professional from the home services app.
Newbie business owners who have an eye on the home services marketplace can launch an on-demand home services app. Alright! This blog gives you a set of absolute insights into the home services business and how to start one.
Stats explaining the growth of home services marketplace in the US
- As per the home services marketplace, leading platforms are UrbanClap, Yelp, TaskRabbit, Amazon home services, etc.
- As per the market analysis, the growth of the global on-demand home services market will be $1574 billion from 2020 to 2024.
- One of the fastest growing marketplaces in the US is the home services market. Currently, the home services market holds $600 billion. This revenue is expected to grow at a CAGR of 49 percent by this year (2021).
- Cleaning, repairing, plumbing, electrical and beauty services are the most demanding services.
Chiefly, get a clear understanding of the type of home services your customers are looking for. The type of home services availed of people from one demographic may vary with another. Hence, you can’t prepare a generalised business plan instead a specific one. We will move deep about the tips for identifying your customers in the upcoming sections.
What are the divisions in on-demand home services?
- House cleaning (repairing, maintenance, plumbing & electrical services)
- Online tutoing (online tutoring and in-person tutoring)
- Health and wellness (fitness training, yoga training, physiotherapy, etc)
- Beauty services (spa, massage, facial, pedicure, manicure, etc)
How to assess your target market and start the home service business?
Assessing your target market is all about identifying the customers and understanding the rivalries.
- Find out your customers
The ideal way to start off your business planning is to analyze the key expectations of your customers-to-be. You need to analyze your customers’ needs from various angles. Let us swiftly slide through the requisite questions for customer analysis.
- Are they interested in on-demand home services?
- Are they already using any on-demand home services app? If yes, find out the commonly used home services app. They can be your competitors.
- What are the types of home services used by them?
- Are they experiencing any disappointments with the current service providers?
These questions are imperative in order to intensively analyze your target customers.
- Know the leading competitors
Home services marketplace is experiencing sheer growth over the past years. Once you wind up the customer analysis phase, find out the existing competitors. You know that the home services marketplace has got diverse services. So, in each category of home service there will be a set of leading competitors. So, first of all, decide your niche or category of home service and then spot out the competitors. Get down to know about the questions involved in analysing potential competitors.
- What are the home services they provide?
- How many active users do they currently possess?
- What are the countries in which they provide services?
- What is their business model?
- What is the revenue model they follow?
- And finally their pricing, app’s features and the overall design
You can’t skip from getting answers to these crucial questions in order to perform competitor analysis.
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- Decide the business model and platform type
Before you develop a booking app for your home services business, you need to choose the business model and the platform type. Business model selection is as important as customer and competitor analysis. Also, knowing your competitors’ business model will help you to decide the one for your business.
- Aggregator model – For providing home services on-demand, develop partnership with multiple home service providers. By implementing this aggregator model, you will get benefited in different ways. For example, your app will get noticed quickly due to the multiple number of home services. Next, you will become eligible to receive commission from service providers.
- Individual model – If you can employ service professionals on your own and manage them, choose the individual model. But you have to ensure that the number of home services provided on your app is high.
Another decision you need to make before heading to the development stage is the platform type selection. There are certain points that will help decide on the type of platform for your app.
- The budget you have allotted for developing your app
- The type of platform your potential customers are using
Generally, there are two approaches to go ahead with choosing the platform. The first approach is choosing the platform your potential customers are using. If you find that both Android and iOS are being used by your customers, go for hybrid app development. Else, you can choose the platform your current potential customers are using. After you expand your home services business, you can expand your app to other platforms as well.
- Choose the channels for monetizing your business
In-app revenue will come from selling ads on your home services app. Other than this, your partners will bring in income in the form of commissions. Next, decide whether you want to add premium subscription packages or not.
- Home services app development
Generally, app development has vast requirements and implementing them will take time. Additionally, bug fixing post the development stages will cost even more time. Instead, white-label Gojek clone app can be considered for your home services app development.
The key points we discussed here include the type of home services, stats, app development, and business models. Build your home services business by applying innovative strategies and also optimizing the business as per customers’ needs.
ABOUT THE AUTHOR
Jennifer Atkinson is a content writer at white-label app development company, Appdupe. Having worked with tech experts, she has gotten lucky to author in-depth guides that teach entrepreneurs, ways to build, grow and scale their business in the on-demand industry. Learning new tech news and jotting them down to a plan for people is her favourite pastime.