Should I Start a Freelance Business or Build an Agency? Side Hustle Showdown

  • A service business is one of the fastest side hustles to get off the ground, and you can scale it by hiring other people to deliver the work.
  • Chris said he saw a huge opportunity in this business model as “a lot of local companies were not marketing really well,” he said. He knew he could market his company well, he just needed to bring on some contractors to do the cleaning.
  • “Find the people you want to serve, find out where they hang out, and go hang out there,” Ken said.
  • Profit margins for an agency are going to be a lot lower than working for yourself because you’re paying everyone to do the work for you. You’re going to need a lot more clients to turn over the same profit as a solo cleaner. In comparison, on the freelance side, almost all of your revenue is profit, since you’re doing the work yourself.
  •  There are some risks involved in running an agency, and Chris has had a few “tests” from customers. He said some customers leave money out to see if the cleaners will take it. He’s also had an incident where a customer damaged some of their own furniture and tried to blame it on his cleaners. Chris suggested your cleaning teams take before-and-after photos of the homes, to cover yourself against any cases that involve your word against the customer’s. He’s also had a case where one of his cleaning teams went on to form their own business, while keeping all the client’s Chris had built up for them.