Services Sector vs. Manufacturing Sector – Which to Choose to Start Your Own Business

Services Sector vs. Manufacturing Sector - Complete Controller

Choosing where to start your business, the service sector or the manufacturing sector, it is crucial to understand the main difference between the two. The service sector is labor-intensive, while you will need capital to start and run your business if you decide on the manufacturing sector. The service sector – relatively easy to start a business in this sector. People may be willing to pay for the service you offer or for teaching them a particular skill. Can you teach a kid math? People are willing to pay you for such a skill. Can you play the piano? Again, people are willing to pay you to learn. It doesn’t matter whether you lack the skills needed to operate a business (such as time management, bookkeeping, negotiating, etc.) or not. Such skills can be mastered. What does matter is to figure out what skill do you have that can sell as a service? Perhaps you do not think you have any skill worth teaching? Most people underestimate their skills and whether others would be interested in learning them. ADP. Payroll – HR – Benefits

Types of Businesses in the Service Sector

The service sector includes personal services, computer services, business services, marketing and sales, home services, children’s services, and event services. Some examples of service sector businesses to start are: pet grooming, house-sitting, babysitting, nurses for home care, housekeeping, dry-cleaning pick-up and drop off/home delivery, food home delivery, event management, self-defense classes, physical fitness trainer, nutritionist, personal chef, health and fitness trainer, planning tours, mobile mechanic, etc.

Types of Businesses in the Manufacturing Sector

You can manufacture toys, smartphone accessories, textile producer, custom furniture maker, wood-work, candy maker, bread maker, shoemaker, belt maker, hair products, make-up, watchmaker, locksmith, air freshener production, embroiderer, papermaker, jewelry maker, fashion design, kitchen utensils maker, glass bead manufacturing, soap, and detergent production. According to, some of the best manufacturing businesses you can start are robotic forklifts and eco-friendly buildings. Download A Free Financial Toolkit

Starting a Business in the Service Sector

To start a business in the service sector is relatively easy, seeing low start-up cost. You do not have to deal with packaging, shipping, and returns in the service industry. You can create your own website, design your cards, and use the laptop and printer you have to do the job. Advertising can be through word-of-mouth or leaflets in the Sunday newspapers, etc. Another advantage of the service industry is the flexibility that it offers. You can work when you want to and take a break from it when the need arises. Also, you can cater to the customer’s needs immediately (you do not have to wait for a product to get tested, or licensed, etc.). A business in the service industry is more personal due to the nature of the business itself. You can make money and feel happy that you have helped someone, as well.

Starting a Business in the Manufacturing Sector

Research the market, bench-mark the competition, find the funds, find the right manufacturer. The last one is not as easy as it looks. Entrepreneur Magazine advises the following steps to set up a manufacturing business: Set up a partnership with the manufacturer (because the amount of business you bring to the table is insignificant compared to their own business. Exit Advisor Researching to find one will not be a piece of cake: few of them have the step to be digitally visible in this day and age, so trade journals and fairs will alleviate the situation. Make sure you check their references. Also, reduce the risk by renting the space needed for your business (do not buy it out, flat). Have more than one partnership going at a time. Get the legalities sorted out. Myra Banks of HerbanLuxe advises talking to knowledgeable people about the type of license and certifications needed to set up a business. Once you are through the legalities, you can buy equipment and hire employees. Know the people you work with, buy communicating with them via emails, phone calls, etc. Try to visit the site, as well, to reassure yourself of the step that you are taking. With a service industry business, it is the knowledge that the company is run on, as very little capital is needed to start with. If you want to start your business in the manufacturing sector, it will be more complex, as it will require you to consider distribution and delivery of the product. The start-up cost will be higher, as well.


Starting a business in the manufacturing sector requires capital, which not everyone has access to. Starting a business in the service sector requires knowledge of a skill.

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