The best path to entrepreneurship isn’t always by coming up with a unique business idea. “Follow the money,” the saying goes. 

Right now, home services businesses are outpacing all other industries in new business openings growth, according to Yelp data. 

Entrepreneurs can often get started with relatively low startup costs, depending on the specialty they choose. Many successful home service businesses begin with just one person and basic equipment, then expand as they gain customers.

If you’re thinking about creating a home services-based business, here’s what you need to know. 

Current Economic and Market Conditions

Higher interest rates are reshaping how homeowners spend their money. Instead of moving to new homes, many people are choosing to spruce up where they currently live. This creates steady demand for maintenance, repairs, and home improvements.

Meanwhile, the U.S. housing stock continues to age, requiring more repairs. Many homes need regular maintenance or updating, creating reliable business opportunities for service providers.

An aging population also means home repairs are often needed to help older people stay safely in their homes, whether that involves installing grab bars in showers and bathtubs, adding ramps, or just making homes generally safer or more accessible. 

A large number of renters means that property management companies are always looking for reliable service providers for home repairs, and renters may be looking for easy upgrades to their homes. 

Yelp points out that people are searching for “renter-friendly home services, such as home organization (up 362%), peel and stick tile (up 73%), wallpapering (up 41%), home automation (up 27%), curtain installation (up 11%), and furniture assembly (up 10%)”. 

More people work from home as well, increasing the need for home maintenance and repairs, cleaning services and home organization solutions. 

The combination of aging homes, changing weather patterns, and new living arrangements creates steady demand for many types of home services.

Low Overhead and Startup Costs

Many home services businesses can start with fairly small initial investment. You may be able to start with basic tools, reliable transportation, and proper insurance to begin serving customers.

In addition, home services businesses may be operated primarily or entirely from home, eliminating the need for expensive office or retail space. This keeps your monthly overhead costs low while you build your client base.

You may also be able to start as a solo owner and expand your team as your business grows. This flexible approach lets you control costs while testing the market and building a sustainable business. (Note that a solo operator may be different from a sole proprietorship, which we’ll talk about later.) 

Growth in Home Services Industry

Recent data from Jobber shows the home services sector continues to grow even as other industries slow down. New business openings in home services are up 11% compared to last year’s record numbers.

Specific segments show strong potential:

• Green services (lawn care and landscaping) report steady revenue growth
• Weather-related services like HVAC and weatherproofing see increased demand
• Cleaning services maintain stable revenue through higher-value services
• Renter-focused services grow as more people stay or live in rental properties

The home services market is expanding in new directions, too. Weather-related home protection services are growing significantly as extreme weather events become more common. At the same time, there’s rising demand for services that cater to renters, like home organization and temporary improvements.

Top 10 Trending Home Services Businesses to Start in 2024

If you’re intrigued by the idea of starting a home services business, here are ten ideas to get started. 

1. Cleaning services

Cleaning services continue to show strong revenue potential despite changes in consumer spending. While the total number of scheduled cleanings has decreased slightly, cleaning businesses maintain steady income through higher-value services and increased prices.

The cleaning industry offers multiple revenue streams. You can offer regular home cleaning, deep cleaning services, or specialized services like carpet cleaning. Many successful cleaning businesses start with residential clients and expand into commercial cleaning as they grow.

Startup costs are relatively low, making this an accessible entry point into home services. Most new cleaning businesses begin with basic supplies and expand their equipment as they add services.

2. Lawn care and landscaping

The “green segment,” which includes lawn care and landscaping businesses, shows some of the strongest growth in the home services sector. 

According to IBISWorld, the market size of the landscaping services industry in the US has grown 4.9% per year on average between 2018 and 2023. Revenues increase as homeowners invest in outdoor space maintenance and improvement.

Lawn care businesses can benefit from recurring revenue through regular maintenance contracts. You can start with basic mowing services and expand into landscaping design, tree care, or hardscaping as your business grows.

And what if your business is located in an area where seasons change? You may choose to operate seasonally or take advantage of colder months by adding snow removal or holiday lighting installation to maintain income throughout the year.

Related businesses include pressure washing and window washing, both of which can be high cash flow businesses.

3. HVAC installation and repair

HVAC service businesses are experiencing significant growth, particularly in regions affected by extreme temperatures. New HVAC business openings increased 10% this year, with strong demand in states like California, Florida, and Texas, according to Yelp data.

Climate change and aging home systems create steady demand for HVAC services. Beyond installation and repairs, you can offer preventive maintenance contracts, air quality services, and energy efficiency upgrades.

While this business requires more technical training and licensing than some other services, it offers higher average revenue per job and strong potential for recurring maintenance contracts.

4. Handyman services

Handyman services are always in demand, but that’s increasing as homeowners and renters seek help with small repairs and improvements. Yelp points to the rise in renter-friendly home improvements as an opportunity for this type of business. 

A handyman business can offer a wide range of services, from basic repairs to small remodeling projects. Many successful handyman businesses start by specializing in a few core services, then expand their offerings as they build expertise and client trust.

This business type allows for flexible scheduling and the ability to choose your service area. You can start as a solo operator and grow your team as demand increases.

5. Plumbing services

Plumbing services remain consistently in demand, with aging housing infrastructure creating steady work opportunities. The contracting segment, which includes plumbing, shows stable revenue growth despite economic fluctuations.

Plumbing businesses can offer both emergency services and scheduled maintenance work. Successful plumbing companies often combine residential service calls with regular commercial maintenance contracts.

While this field requires specific licensing and training, it offers higher average revenue per job and opportunities for expansion into related services like water heater installation and pipe replacement. It’s not the easiest to break into, but once you do, referrals from satisfied customers and repeat business from property managers or contractors can keep you very busy. 

6. Home organization and decluttering services

Home organization services have seen remarkable growth, with business openings up 18% and consumer searches increasing 362% in the past year, again according to Yelp data. This surge reflects changing living patterns and increased work-from-home arrangements.

Home organization businesses can serve both homeowners and renters, offering services from closet organization to full home systems implementation. Many organizers also provide virtual consulting services, allowing for multiple revenue streams.

This business requires minimal initial investment and can be started with basic organizational tools and good systems knowledge. Success often comes from combining practical organization skills with coaching and support for clients.

7. Pest control services

Pest control services provide steady, recurring revenue through regular maintenance contracts. Climate changes and urban development continue to drive demand for pest management services.

This business model benefits from year-round demand and the ability to offer preventive maintenance programs. Successful pest control companies often expand into related services like termite prevention and wildlife removal.

While pest control requires specific licensing and insurance, and some specialized equipment, startup costs remain relatively reasonable compared to many other home services businesses.

8. Smart home installation services

More and more homeowners are using smart home services, ranging from cameras to security systems, to full home automation. Yelp research finds that smart home installation has seen significant growth, with consumer searches for home automation up 27% and new business openings up 23% this year. 

Smart home installers can offer services ranging from basic security system installation to complete home automation solutions. Many successful businesses in this field combine installation services with ongoing support and maintenance plans.

This business allows for growth into both residential and commercial markets, with opportunities to partner with security companies and smart device manufacturers.

9. Pool maintenance & cleaning

Pool maintenance services offer strong potential for recurring revenue through regular service contracts. The increasing number of home pools, especially in warmer regions, creates steady demand.

Pool service businesses can offer regular maintenance, repairs, and seasonal opening/closing services. Many successful pool companies expand into equipment sales and installation as they grow.

This business type benefits from predictable scheduling and the ability to build a stable client base through weekly or monthly service contracts.

10. Solar panel installation

Solar installation businesses are growing as homeowners seek energy independence and cost savings. Changes in energy costs and increased climate awareness continue to drive demand for solar services.

Solar installation companies can offer both residential and commercial services, with opportunities for ongoing maintenance contracts. Many successful solar businesses expand into related services like battery storage installation and energy efficiency consulting.

While this business requires significant technical knowledge and licensing, it offers higher revenue per project and strong growth potential.

11. Pet Services Business

Americans love their pets, and pet services are experiencing substantial growth. This sector offers multiple service opportunities, from pet sitting and dog walking to mobile grooming and training.

Pet service businesses benefit from high customer loyalty and recurring revenue opportunities. Many successful pet service providers start with basic services and expand into specialized offerings like pet therapy or luxury pet care.

This business type offers low barriers to entry and the ability to scale through adding services or expanding your service area.

Another strategy to consider: If you don’t want to run your own business in one of these niches, you may be able to help other business owners manage and run theirs. 

You can create websites for businesses in one or more of these niches, and specialize in search engine optimization or local advertising. You may be able to offer bookkeeping, dispatch services, virtual assistant services that streamline services and create more efficient workflows, or provide marketing strategy and/or social media management services, as just a few examples. 

How to Get Started in the Home Services Industry

Many people start in this industry by offering services to a few clients. When they do a good job, referrals often follow. But if you want to build a profitable long-term business—including one that you can sell someday—consider taking a systematic approach. 

Develop a business plan

If you’ve never created a business plan, this step can be intimidating. The basic idea is to research the local market, competition and pricing in your target area, then create a plan to capitalize on what the research shows. 

Business plans generally include:

• Startup costs for equipment, licenses, and insurance
• Pricing strategy based on local market rates
• Service area boundaries
• Target customer profile
• Required licenses and certifications
• Growth timeline and goals

Here’s how to write a business plan. 

And remember, your plan can change as you get a feel for the market. Many successful home service businesses start with core services and add new offerings as they grow.

Securing funding and resources

Most home service businesses can start with relatively low investment. However, there are some essential costs you need to be able to cover. These often include: 

• Basic equipment and tools
• Business insurance
• Licenses and permits
• Marketing materials
• Reliable transportation
• Working capital for the first few months

It’s fine to start small to test your market. Many successful owners begin as solo operators, using their own vehicle and basic tools. This approach lets you build revenue before making larger investments in equipment, tools, or employees.

Some business owners even start their business while keeping their current job. This provides stable income while you build your customer base. Many home services can be scheduled around regular work hours, especially in the beginning.

That said, there are some areas where you don’t want to skimp on spending. 

Licenses and insurance are two of them. You could face expensive fines if you don’t get the licenses required in your state. 

And if you will be driving your vehicle for your business, you need to make sure you have commercial vehicle insurance. Since you’ll be going onto customer’s property to complete work, you’ll also want to make sure you have the right types of business insurance. 

As soon as it’s feasible, you’ll want to consider forming a business entity like an LLC or corporation to help protect your personal assets from your business. 

Where to get funding for your business

Here are several types of small business loans and financing options to help you get started:

Business credit cards 

Business credit cards are one of the most popular types of financing for startups because they are available as soon as you start your business (if you qualify). They offer quick access to funds for new business owners. Beyond purchasing power, they often provide:

• Opportunity to establish business credit with on-time payments
• Separation of business and personal expenses
• Cash back or rewards on common purchases like fuel and supplies

Some business credit cards offer 0% intro APRs for several months, which can be very helpful with cash flow.  

Lines of credit 

A business line of credit provides flexible funding you can use as needed. Benefits include:

• Borrow only what you need, when you need it
• Pay interest only on what you borrow
• Funds become available again as you repay
• Helpful for managing seasonal cash flow

Equipment financing 

For businesses that need specific equipment, equipment financing can be a way to get that equipment without paying for it upfront. 

• Finance specific tools or vehicles
• Often easier to qualify for than general business loans
• May offer tax advantages
• Can include maintenance and upgrades
• Option to lease instead of buy

Supplier payment terms 

You may not need to pay for supplies upfront. With supplier terms (like net-30 accounts), you can buy now and pay later. 

• Pay for supplies over time (often 15-60 days or longer)
• Usually doesn’t require personal credit checks
• Helps manage cash flow while building inventory
• Can strengthen supplier relationships

Marketing and Growing Your Business

Your online reputation matters a lot when you start and grow your business. Ignore it and you may miss out on opportunities for new business. At a minimum, it’s helpful to create a simple website so customers that search for your business can find it. 

Create profiles on popular platforms where customers look for home services:

• Yelp
• Google Business Profile
• Nextdoor
• Social media platforms

Focus on getting customer reviews as soon as you can. Recent market data shows that positive reviews significantly impact hiring decisions for home services. Make it easy for satisfied customers to leave reviews by following up as soon as you complete the job. 

Many successful home service businesses build long-term relationships by:

• Providing excellent first-time service
• Following up after completion
• Offering maintenance plans or service packages
• Requesting referrals from satisfied customers

As you grow, invest in business management software to help handle scheduling, invoicing, and customer communication. This automation helps you serve more customers while maintaining service quality.

Track your marketing efforts to understand what brings in the best customers. Focus your spending on methods that attract your ideal clients, whether that’s online advertising, local partnerships, or community involvement.

Key Takeaways: Why 2024 is Ideal for Launching a Home Services Business

Starting a home services business in 2024 lets entrepreneurs combine opportunity with practicality. You can often enter this market with relatively low startup costs and grow at your own pace. Whether you choose traditional services like cleaning and landscaping, or emerging opportunities like smart home installation, the market shows increasing demand.

Choose the types of service, and service area in which you want to focus, then build a strong reputation through quality work and reliability. As your business grows, you can expand or focus your services to build a business that’s both profitable and that fills a genuine need. 

How Nav Can Help

With Nav you can establish business credit, then manage and monitor both your personal credit and business credit. When you need financing, you can view financial options from 160+ trusted loans and credit cards based on your business data.

With Nav Cash Flow Health you can monitor your cash flow in real time. And get referrals to key business services, like accounting software and business formation services.