How to Start a Personal Concierge Business

Part 1 - How to start a Personal Concierge business - Background

As a personal concierge, also known as a personal assistant, your range of duties is bound only by your own description of what you’ll do and the needs of the individuals who hire you. That scope of activity can include dog walking and pet-sitting, appointment scheduling and travel booking, moving assistance, home office support, and whatever else you’ll do or be asked to do by your clients.

You may also be interested in additional side hustle ideas.

Our guide is in 3 parts:

• Part 1 - How to start a Personal Concierge business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a personal concierge business?

One of the advantages of this field is the low startup cost. Your personal concierge business is more about you than about inventory or overhead. For instance, you won’t need an office — except perhaps a spare bedroom or kitchen table big enough for phone and laptop — since, virtually by definition, most of your activities will take place offsite. And when you are working from home, you’ll be alone, so you’ll impress no one with a fancy office. However, here are a few costs you might be unable to avoid:

• Phone and computer — Zero to $1,500. Chances are good that you have both, but they’re both critical to the operation of your business.

• Sales and marketing — Zero to $3,500 or more. The basics of marketing your services is business cards and flyers. You need to create or hire someone to create a logo and a website that clearly promotes your services. Trade show booth rental and a well thought-out social media presence might also be part of your efforts.

• Transportation — At least a few tanks of gas or public transit travels to get you started. Your business will take you wherever you need to go, so include travel expenses in your budget. Similarly, you might have to pay for meals or pack your own.

• Professional services and insurance — Several hundred dollars or more. This isn’t a complicated business, but you might want to run your business category options and your business idea past a lawyer and accountant. You should also explore your liability insurance needs with an agent.

• Membership — $90 to $300 per year, or more. The annual dues vary depending on your location, but consider membership in the National Concierge Association if there’s a chapter near you. Benefits include continued education, marketing advice and the opportunity to network and exchange rate information and promotional ideas with others in your line of business.

What are the ongoing expenses for a personal concierge business?

Your largest ongoing costs will be for the marketing of your services and such fairly modest daily expenses as gas or transportation, meals, tolls, etc. You should also keep your wardrobe up to date and yourself well groomed. How much you invest in these efforts will largely be determined by the revenue you generate.

Who is the target market?

Look for clients who are busy and have the financial wherewithal to hire your services. These individuals’ lives might be hectic because they’re raising children, working long hours out of the home, or caregiving to parents, among other reasons. Another set of client types are elderly people who can’t function as swiftly as they used to. And some companies, particularly larger corporations, offer concierge services as part of their benefits packages — or could be encouraged to do so as a way of addressing some of the personal needs of their busy employees.

How does a personal concierge business make money?

Your main source of revenue will be from your clients for your services and, occasionally from their additional tips in appreciation. Also, consider exploring the possibility of developing referral agreements with such vendors as wedding planners, travel agents and moving companies that will enable you to receive commissions or discounts for business conducted by your clients.

How much can you charge customers?

The website Payscale estimates an average rate of $12.83 an hour, and about $25 at the top end. However, this heavily reflects paid employees of services offered by hotels and other hospitality businesses rather than independent contractors. Your own rates will be determined by how much perceived value you offer as well as by the wage rate in your location and the finances of the clientele you target.

How much profit can a personal concierge business make?

Payscale puts concierge salaries in the range of from about $21,000 to $41,500 annually. Glassdoor has the figure at a national range of around $25,400. However, both of these sources are primarily concerned with the salaries of employees for concierge services at hospitality centers. Your own revenue stream will depend on your reputation, marketing expertise, local competitive rates and other factors.

How can you make your business more profitable?

Explore the possibility of adding life coaching to your service offering. Visit this website to learn about life coaching and how to gain industry certification.

Day-to-Day and Growth

What happens during a typical day at a personal concierge business?

Your typical day is too hard to define since each will be different depending on the mix of your clientele and services extended, but you must make room for the following basic activities.

• Promoting your services and seeking clients in unique and creative ways

• Scheduling time to meet with new prospects

• Undertaking the assignments expected of you

• Handing the everyday office tasks demanded of everyone in business, from scheduling your time to invoicing clients and paying your bills

What are some skills and experiences that will help you build a successful personal concierge business?

You must get along well with others and project an aura of self confidence and accomplishment. You must be a well organized multi-tasker with strong sales skills. You should also be able to create a website that effectively introduces you to your public and be adept at social media to broaden your appeal.

What is the growth potential for a personal concierge business?

Since this is a field of business that can be considered a luxury that some could dispense with if personal budgets had to be cut, personal concierge services are closely tied to the economy. As long as the local economy stays at least fairly strong, there’s opportunity for growth. Or you might strive to become so indispensable to your clients that they’d see your services as more of a necessity than a luxury.

What are some insider tips for jump starting a personal concierge business?

Start slow, with a single client on a part-time basis. For instance, it might be a mom who needs you after the kids get out of school and that might allow you to continue another part-time night or weekend job. Another idea is to approach businesses first as a concierge to employees. That way you can possibly count on enough business to devote your full-time energy once you sign a contract. Approach larger corporations via their human resources department.

If you have more cash on hand than answers (if will cost you $20,000 upfront) consider buying a franchise of an existing concierge business. The advantage is that someone else got the kinks out of the idea and can serve as a guide to establishing your own successful business. But be sure to first carefully research the opportunity and make sure it’s to your benefit before investing in such a situation.

How and when to build a team

Unless you explore franchising opportunities of your own, you probably won’t have a need for employees. However, you can build collaborations with other service providers like florists or travel agents to support or expand your service offering.

Part 2 - Is a Personal Concierge business the right fit for you?

Part 3 - Action plan to launch your Personal Concierge business in 90 days