How To Start A Tour Guide Service Business

You've stumbled upon the idea to build a tour guide service business and now you're ready to take the next steps.

There's a lot to think about when building a business, so we put together a guide on how to get started, launch, grow and run your tour guide service business.

We also provide you with real-life case studies and examples of founders running successful tour guide service business (and how much💰 they're making today).

💡 Introduction To Starting A Tour Guide Service Business

Is Starting A Tour Guide Service Business Right For You?

There are many factors to consider when starting a tour guide service business.

We put together the main pros and cons for you here:

Pros of starting a tour guide service business

• Little startup costs required

The cost to start a tour guide service business costs significantly less money than most businesses, ranging anywhere from 62 to 35,923.

• Rewarding work

Starting a tour guide service business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

• High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

• Pick & choose the clients you work with

Tour Guide Service Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

• Control of workload

With starting a tour guide service business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

• Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

• Unlimited income potential

With starting a tour guide service business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

• Daily physical activity

Tour Guide Service Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.

• You are your own boss!

With starting a tour guide service business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

• Local Community

One of the best parts of starting a tour guide service business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

• Predictable income stream

Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!

• Higher likelihood of getting referrals

This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

• Face to face interaction

If you are the type of individual that thrives on human interaction, then this is the business for you! With a tour guide service business, you will be hands-on with customers and or employees every day.

• Simple business model

A tour guide service business has the advantage of a simple business model, which makes launching and building the business more seamless.

• Greater Income Potential

With this business, the sky is the limit in regards to your income potential.

• You get to do something you truly love

With starting a tour guide service business, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

• You can decide who you work with

Gone are the days of working in a toxic work environment with employees that you may not vibe with. As a small business owner, you get to decide who you work and surround yourself with.

• Strong Demand & Relatively Recession Proof

The demand for tour guide service business is increasing year over year and the business is known to be relatively recession proof.

• High Hourly Pay Rates

On average, the hourly pay rates are high for your tour guide service business - which means quality of clients is often superior to quantity of clients.

• You establish yourself as an expert

With starting a tour guide service business, you establish yourself as an expert in your niche, which builds your credibility. In return, customers are more likely to trust you and refer you to other friends and family.

• Can build solid foundation of clients

It's unlikely you will have one-off customers as a tour guide service business. Typically, you have a solid foundation of clients that use your product and services regularly.

Cons of starting a tour guide service business

• Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

• Longer Sales Process

A tour guide service business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

• Work can be inconsistent

As a tour guide service business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.

• Lack of benefits

With a tour guide service business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

• Taxes

As a tour guide service business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

• No safety net

Typically, as a tour guide service business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

• Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

• Work can be repetitive

You may find creating the same product over and over repetitive and tiresome. One way of avoiding this is to diversify product lines and revenue streams - this will keep things interesting!

• Time commitment

With starting a tour guide service business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

• Be prepared to get out of your comfort zone!

Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!

• More of a challenge to run your business from home!

Running your business from the comfort of your own home is a big appeal for many entrepreneurs. With a tour guide service business, you are more likely to run your business out of your office or storefront space.

• Work is not always glamorous

With starting a tour guide service business, you may need to get your hands a little dirty. Although it may seem glamorous from the outside to start this business, the work can require a lot of physical activity and repetition.

• The job can be demanding

This is one of the major disadvantages starting a tour guide service business. It's important to understand that you may need to make yourself available on a 24/7 basis.

• High liability

Running a tour guide service business involves a lot of liability, which means the cost for insurance premiums may also be high.

• Equipment Breakdowns

Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.

• Answering Phones

The tour guide service business is still considered a traditional business, which means answering phones is a big part of the job. If you or your team miss phone calls, you could be missing out on potential revenue opportunities. If you are unable to attend to your phone throughout the day, it would be in your best interest to hire a call center or an employee dedicated to this.

• You'll spend a lot of time in the car

Many tour guide service business offer their services outside of their office or home, which means you'll be spending quite a bit of time behind the wheel. You will also need to consider traffic and delays, which can be time consuming and take each job longer than expected.

• The job can be dangerous

Your tour guide service business can have its dangerous moments, which puts you and your employees at risk. It's important to consider all liability and put processes and procedures in place that will prepare you and your team.

• More challenging to earn passive income

It can be more of a challenge to make passive income in this business. Often times, the amount of revenue you bring in is limited by the amount of time you have in the day.

Players

Big Players

• The Points Guy (6.74K Alexa Ranking)
• Atlas Obscura (7.94K Alexa Ranking)
• AFAR (30.7K Alexa Ranking)
• ToursByLocals (32.7K Alexa Ranking)
• Intrepid Travel (41.5K Alexa Ranking)

Small Players

• Rayna Tours - Revenue $500K/month

Search Interest

Let's take a look at the search trends for tour guide services over the last year:

How To Name Your Tour Guide Service Business

It's important to find a catchy name for your tour guide service business so that you can stand out in your space.

Here are some general tips to consider when naming your tour guide service business

• Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
• Conduct a search to see if others in the space have the same name
• Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
• As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your tour guide service business so important?

The name of your business will forever play a role in:

• Your customers first impression
• Your businesses identity
• The power behind the type of customer your brand attracts
• If you're memorable or not

It's important to verify that the domain name is available for your tour guide service business.

You can search domain availability here:

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your tour guide service business:

• Educational Trip Trading Co check availability
• Stop&Company check availability
• GuidedItinerary check availability
• Continental Term Of Enlistment check availability
• Minute Spell check availability
• WeekDutyTour check availability
• WesternWorks check availability
• Spell Chronicles check availability
• The Scottish check availability
• FamousGroup check availability
• Tour Of Duty & Company check availability
• The National Hitch Spot check availability
• Pedestrian Circuit check availability
• Spell Collective check availability
• Missionary Hitch Chronicles check availability
• Week Spell check availability
• SuccessfulPro check availability
• The Triumphant Circuit Group check availability
• Educational Spell Chronicles check availability
• The Continental Duty Tour Works check availability
• CityWorks check availability
• ScottishEnlistment check availability
• SouthPro check availability
• The Northern Turn Spot check availability
• ProPro check availability
• Walking Go Chronicles check availability
• National Circuit check availability
• Recent Tour Of Duty Co check availability
• Duty Tour International check availability
• Extensive Turn Collective check availability
• UsualDesigns check availability
• The Nationwide Turn Co check availability
• ProSpell check availability
• Extended Trip check availability
• Educational Tour Of Duty check availability
• MissionaryEnlistment check availability
• Term Of Enlistment Group check availability
• Extensive&Company check availability
• WorldTradingCo check availability
• ProlongedSpot check availability
• The Prolonged Duty Tour Trading Co check availability
• AnnualGroup check availability
• AnnualItinerary check availability
• SecondTradingCo check availability
• InterestingCollective check availability
• Foreign Tour Of Duty Chronicles check availability
• OverseasGroup check availability
• South Circuit Place check availability
• OfficialWorks check availability
• Foreign Tour Of Duty check availability
• Italian Term Of Enlistment Designs check availability
• OfficialItinerary check availability
• Itinerary & Company check availability
• MinutePro check availability
• DayDesigns check availability
• SecondPro check availability
• SubsequentCo check availability
• Last Enlistment Works check availability
• Usual Hitch Spot check availability
• Enlistment Works check availability
• Missionary Circuit check availability
• The Overseas Term Of Enlistment Trading Co check availability
• Triumphal Spell Chronicles check availability
• Optimal Go check availability
• The Provincial Itinerary Spot check availability
• Month Hitch Group check availability
• Enlistment Pro check availability
• EntireTrip check availability
• Pedestrian Go check availability
• The South Go Spot check availability
• RoyalTourOfDuty check availability
• NorthernCo check availability
• AnnualCircuit check availability
• The Short Spell Co check availability
• First Term Of Enlistment check availability
• First Trip International check availability
• Continental Itinerary Trading Co check availability
• Pleasant Spell Designs check availability
• CountryTurn check availability
• ScottishPlace check availability
• Tour Of Duty Collective check availability
• Western Hitch Trading Co check availability
• ProfessionalCo check availability
• Week Enlistment International check availability
• Pleasant Duty Tour International check availability
• Turn & Company check availability
• MissionaryGroup check availability
• Second Itinerary check availability
• Triumphant Duty Tour check availability
• FirstHitch check availability
• FirstTrip check availability
• ShortCo check availability
• Brief Turn check availability
• FamousCircuit check availability
• Pedestrian Go Chronicles check availability
• Western Enlistment check availability
• ForeignSpot check availability
• The Stop Hitch Co check availability
• SuccessfulHitch check availability
• The Walking Enlistment Place check availability
• Mile Enlistment check availability
• SeeingHitch check availability
• Circuit Group check availability
• YearDesigns check availability
• ItalianTurn check availability
• The Quick Enlistment Chronicles check availability
• Minute Circuit Place check availability
• OfficialDutyTour check availability
• GuidedChronicles check availability
• Optimal Itinerary Pro check availability
• World Trip & Company check availability
• Remarkable Trip Collective check availability
• The First Turn Co check availability
• Trip Works check availability
• The Circular Go Co check availability
• ScottishTradingCo check availability
• InterestingCo check availability
• WalkingEnlistment check availability
• Pleasant Turn Collective check availability
• The Triumphal Spell Chronicles check availability
• Third Go check availability
• Term Of Enlistment Works check availability
• Enlistment International check availability
• Year Trip & Company check availability
• The Subsequent Term Of Enlistment Designs check availability
• Circular Duty Tour Pro check availability
• First Trip Spot check availability
• Circular Tour Of Duty Works check availability
• Overseas Enlistment Collective check availability
• SouthTourOfDuty check availability
• Seeing Circuit Group check availability
• Mile Go check availability
• First Enlistment check availability
• Usual Tour Of Duty Group check availability
• Scottish Itinerary International check availability
• The Brief Go Collective check availability
• Royal Itinerary Collective check availability
• Grand Circuit check availability
• Promotional Spell Designs check availability
• WorldCircuit check availability
• MileTradingCo check availability
• Walking Enlistment Collective check availability
• Week Go Co check availability
• The Usual Turn Group check availability
• The Long Enlistment & Company check availability
• The Minute check availability
• Grand Itinerary check availability
• OptimalEnlistment check availability
• Stop Term Of Enlistment Co check availability
• Usual Spell Chronicles check availability
• Finding Hitch Works check availability
• Triumphal Go Group check availability
• Complete Itinerary Collective check availability
• Extensive Spell International check availability
• Finding Turn & Company check availability
• Duty Tour Spot check availability
• Promotional Enlistment check availability
• HourDesigns check availability
• Day Hitch Chronicles check availability
• FindingGroup check availability
• Last&Company check availability
• Term Of Enlistment International check availability
• Pedestrian Spell Works check availability
• Professional Tour Of Duty Group check availability
• Recent Duty Tour check availability
• Month Circuit International check availability
• National Turn check availability
• Second Turn Works check availability
• Foreign Hitch Pro check availability
• Leisurely Circuit Pro check availability
• The Scottish Turn Collective check availability
• FamousInternational check availability
• Duty Tour Collective check availability
• Guided Duty Tour check availability
• Subsequent Hitch Place check availability
• ContinentalSpell check availability
• The Quick Hitch & Company check availability
• Itinerary Place check availability
• Scottish Turn Spot check availability
• The Day check availability
• YearGo check availability
• The Royal Turn & Company check availability
• Extended Trip Co check availability
• CircularHitch check availability
• The Recent Turn Place check availability
• Last Trip check availability
• PleasantCollective check availability
• Itinerary Collective check availability
• Short Circuit check availability
• Scottish Enlistment Collective check availability
• National Tour Of Duty Trading Co check availability
• Short Term Of Enlistment Collective check availability
• NationwideSpot check availability
• WalkingItinerary check availability
• The Brief Itinerary & Company check availability
• Term Of Enlistment Trading Co check availability
• ScottishDesigns check availability
• The City Itinerary Chronicles check availability
• Tour Of Duty Works check availability
• The Extensive Duty Tour International check availability
• EducationalGroup check availability
• ForeignTrip check availability
• QuickPlace check availability
• Mile Circuit Trading Co check availability
• Spell Designs check availability
• Circuit International check availability
• SouthernTourOfDuty check availability
• The Short Turn Pro check availability
• The Northern check availability
• ProvincialDutyTour check availability
• MonthCo check availability
• Turn Chronicles check availability

How To Create A Slogan For Your Tour Guide Service Business:

Slogans are a critical piece of your marketing and advertising strategy.

The role of your slogan is to help your customer understand the benefits of your product/service - so it's important to find a catchy and effective slogan name.

Often times, your slogan can even be more important than the name of your brand.

Here are 6 tips for creating a catchy slogan for your tour guide service business:

1. Keep it short, simple and avoid difficult words

A great rule of thumb is that your slogan should be under 10 words. This will make it easy for your customer to understand and remember.

2. Tell what you do and focus on what makes you different

There are a few different ways you can incorporate what makes your business special in your slogan:

• Explain the target customer you are catering your services towards
• What problem do you solve?
• How do you make other people, clients, or your employer look good?
• Do you make people more successful? How?

3. Be consistent

Chances are, if you're coming up with a slogan, you may already have your business name, logo, mission, branding etc.

It's important to create a slogan that is consistent with all of the above.

4. Ensure the longevity of your slogan

Times are changing quickly, and so are businesses.

When coming up with your slogan, you may want to consider creating something that is timeless and won't just fade with new trends.

5. Consider your audience

When finding a catchy slogan name, you'll want to make sure that this resonates across your entire audience.

It's possible that your slogan could make complete sense to your audience in Europe, but may not resonate with your US audience.

6. Get feedback!

This is one of the easiest ways to know if your slogan will be perceived well, and a step that a lot of brands drop the ball on.

Ask friends, family, strangers, and most importantly, those that are considered to be in your target market.

Learn more about starting a tour guide service business:

Where to start?

-> How much does it cost to start a tour guide service business?
-> Pros and cons of a tour guide service business

Need inspiration?

-> Other tour guide service business success stories
-> Examples of established tour guide service business
-> Tour guide service business Instagram captions

Other resources

-> Tour guide service business tips

🎬 How To Start A Tour Guide Service Business

How Much Does It Cost To Start A Tour Guide Service Business

If you are planning to start a tour guide service business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a tour guide service business and outline the costs you should expect for each:

• The estimated minimum starting cost = $62
• The estimated maximum starting cost = $35,923

Startup Expenses: Average expenses incurred when starting a tour guide service business.	Min Startup Costs: You plan to execute on your own. You’re able to work from home with minimal costs.	Max Startup Costs: You have started with 1+ other team members.
Employee & Freelancer Expenses
Payroll Costs & Fees: Payroll cost means the expense of paying your employees, which includes salaries, wages, and other benefits. This number depends on if you decide to pay yourself a salary upfront and how many employees you have on payroll. At first, many founders take on all responsibilities until the business is up and running. You can always hire down the road when you understand where you need help. Keep in mind, if you do plan to pay yourself, the average salary founders make is $50K.	$150	$250
Employee Hiring Expenses: Apart from payroll and benefits, there are other hiring employees costs. This includes the cost to advertise the job, the time it takes to interview candidates, and any other turnover that may result from hiring the wrong candidate.	$1	$2
Total Employee & Freelancer Expenses	$151 (min)	$252 (max)
Website Costs
Website Builder: The cost of your website will vary depending on which platform you choose. There are many website builders on the market, so it's important you choose the right one for your business and overall goals. To learn more about your options + how to build a great website, check out this article.	$10	$500
Web Designer: Web design includes several different aspects, including webpage layout, content creation, and design elements.If you have the skills and knowledge to design your website on your own, then outsourcing this to an expert may not be necessary. There are plenty of other ways you can design a beautiful website using design tools and software.	$200	$6,000
Domain Name: Your domain name is the URL and name of your website - this is how internet users find you and your website.Domain names are extremely important and should match your company name and brand. This makes it easier for customers to remember you and return to your website.	$12	$200
Business Email Hosting Service: An email hosting runs a dedicated email server. Once you have your domain name, you can set up email accounts for each user on your team. The most common email hosts are G Suite and Microsoft 365 Suite. The number of email accounts you set up will determine the monthly cost breakdown.	$1	$15
Website Hosting Costs: Server hosting is an IT service typically offered by a cloud service provider that hosts the website information and allows remote access through the internet. A hosted server can help you scale up and increase your business’s efficacy, relieving you from the hassles of on-premise operations.	$0	$300
Total Website Costs	$223 (min)	$7,015 (max)
Business Formation Fees
Small Business Insurance: Depending on which state you live in and the business you're operating, the costs and requirements for small business insurance vary. You can learn more here.	$500	$2,000
Permit and License Fees: Depending on your industry, there are certain licenses and permits you may need in order to comply with state, local, and federal regulations. Here is an article that goes over all the permits and licenses you may need for your tour guide service business.	$50	$700
Lawyer Fees: Although you may want to avoid attorney fees, it's important that your business (and you) are covered at all costs. This comes into play when creating founder agreements, setting up your business legal structure, and of course, any unforeseen circumstances that may happen when dealing with customers or other businesses.	$0	$1,500
Set up business: LLC & Corporations: The first step in setting up your business is deciding whether your business is an LLC, S Corp or C Corp. The cost for this depends on which state you form your business and which structure you decide on. We put together an article that goes over the 10 Steps To Setting Up A Business.	$50	$500
Total Business Formation Fees	$600 (min)	$4,700 (max)
Vehicle Expenses
Mode of Transporation: For your tour guide service business you'll need to rent or purchase an operating vehicle such as a van, vessel, RV, or enclosed trailer.	$0	$10,000
Total Vehicle Expenses	$0 (min)	$10,000 (max)
Retail Business Expenses
Utilities (storefront business): This refers to the cost of monthly utilities for your storefront location, which is typically based on a per-square-footage rate.	$0	$1,000
Building improvements and remodeling: If you plan to operate a physical location, you may find yourself dealing with building improvements and remodeling costs. Even if these costs are minimal, this is something to consider when renting/buying a physical location.	$0	$950
Storefront Property Rent: This refers to the storefront space you rent or buy for your business. The cost depends largely on the city and the size of the space. Keep in mind that other costs may be involved with your base rent and your lease will define additional expenses you are responsible for.	$1,250	$3,500
POS System: Gone are the days of cash registers! Many businesses now use point-of-sale systems for their checkout needs and to track sales and inventory. Here is a list of the best POS systems for small businesses!	$0	$1,200
Total Retail Business Expenses	$1,250 (min)	$6,650 (max)
Advertising & Marketing Costs
Business Cards: A tour guide service business involves quite a bit of customer interaction, whether that is attending tradeshows, sales calls or simply having face to face interaction with prospective clients. Business cards are a great way to stay front of mind with your clients.	$0	$50
Business Signage: Business signs let people know they're in the right place and are one of the first impressions your customer will have of your business.The cost for signage depends on a variety of elements:- material- size- number of colors- durability- installation and laborThere are plenty of design tools and software to create your own signs, or you can hire a sign business to do this for you.	$75	$2,486
Direct Campaigns, Printing and Mailing: Although it may sound old-school, traditional marketing methods can be a cost-effective way to drive awareness for your brand. This includes flyers, postcards, sales letters, coupons, special offers, catalogs and brochures.	$0	$300
Press: If your business and story is unique enough, press and media attention may come to you, but odds are, you may need to do your own outreach and budget for this. We put together a guide here that discusses different press opportunities (both free and paid).	$0	$500
Google Ads: With Google Ads you have the ability to control how much you spend by simply setting a monthly budget cap. Additionally, with these ads you only pay for results, such as clicks to your website or phone calls! It's okay to start with a small budget at first and make changes accordingly if you see valuable returns.	$0	$300
Facebook & Instagram Ads: With Facebook and Instagram ads, you set your budget and pay for the actions you want (whether that be impressions, conversions, etc).You can learn more about pricing based on your impressions here.	$0	$350
Total Advertising & Marketing Costs	$75 (min)	$3,986 (max)
Software Expenses
Email marketing tool: If you plan to grow your email list and email marketing efforts, you may want to consider investing in an email marketing platform (ie. Klaviyo, MailChimp). We put together a detailed guide on all of the email marketing tools out there + the pricing models for each one here.	$0	$100
IT Support: IT support installs and configures hardware and software and solves any technical issues that may arise.IT support can be used internally or for your customers experiencing issues with your product/service.There are a variety of tools and software you can use to help with any technical issues you or your customers are experiencing. This is a great option for businesses that do not have the means to hire a team of professionals.	$150	$2,000
Accounting & Invoicing Software: It's important to have an accounting system and process in place to manage financials, reporting, planning and tax preparation. Here are the 30 best accounting tools for small businesses.	$0	$50
CRM Software: CRM (customer relationship management) software system is used to track and analyze your company’s interactions with clients and prospects. Although this is not a necessary tool to have for your business, implementing this, in the beginning, may set your business up for success and save you valuable time.	$12	$300
Internal Communication Tool: If you plan to have multiple members on your team, you may want to consider an instant message tool such as Slack or Telegram. The cost is usually billed per month (approx $5/user/month) or there are freemium versions available on many platforms.	$0	$20
Social Media Management Tools: If you plan to do social media marketing for your tour guide service business, you should consider investing in a social media automation or publishing tool. This will save you time and allow you to track performance and engagement for your posts. Here is a list of 28 best social media tools for your small business.	$0	$50
Payroll Software: The main purpose of payroll software is to help you pay your team and track each of those payments (so that you don't have to do it manually). If you do not have any employees or have a very small team, payroll software may not be necessary at this stage. Here are the 11 best payroll tools for small businesses!	$0	$200
Total Software Expenses	$162 (min)	$2,720 (max)
Office Space Expenses
WiFi & Internet: Whether you work from home or in an office space, WiFi is essential. Although the cost is minimal in most cases, it should be appropriately budgeted for each month!	$0	$100
Total Office Space Expenses	$0 (min)	$100 (max)
Specific Industry Expenses
Handyman Tools: To start your tour guide service business, you will need to have the essential tools to bring to each job. Here's a list of tools to get you started - you may find that you already have these in your tool-kit or garage!	$0	$500
Total Specific Industry Expenses	$0 (min)	$500 (max)
Total Starting Costs	$62 (min)	$35,923 (max)

Raising Money For Your Tour Guide Service Business

Here are the most common ways to raise money for your tour guide service business:

Bootstrapping

You may not need funding for your tour guide service business.

In fact, many entrepreneurs take this approach when starting their own business, whether they have a little amount of cash or a substantial amount to get started.

So what exactly does the term "bootstrapping" mean?

This method essentially refers to self-funding your businesswithout external help or capital and reinvesting your earnings back into the business**

Bootstrapping means building your company from the ground up with your own, or your loved ones, personal savings and reinvesting all earnings back into the business

Here are some tips to consider when bootstrapping your business:

• Use your savings as your capital - one of the best ways to bootstrap your business is to collect your savings and use them as startup capital. This will also help you avoid using your personal or business credit cards when getting started.
• Determine exactly how much capital you need and how much capital you have to get your business off the ground. Generally, when bootstrapping your business, you may want to consider starting a business that involves less startup capital.
• Consider starting a business that will generate immediate returns so you can put money back into the business
• Be as lean as possible - this refers to cutting down expenses as much as possible, such as payroll, fancy software tools, unnecessary travel, renting an office, etc
• Consider outsourcing instead of hiring - in the beginning, you may not need to hire someone permanently to help run your business. It tends to be much less expensive to outsource work to a freelancer and hire someone permanently down the road!

Want to learn more about bootstrapping your business? Check out this article

Crowdfunding

For your tour guide service business, a common way to raise money is through crowdfunding.

So, what does it mean to crowdfund your small business?

Crowdfunding refers to funding a project through many individual investors.

Here are some items to keep in mind when planning your campaign:

• Sell more than just your product. Sell your passion, your vision, and your story.
• Be real. Give your community honest details about your product.
• Treat your audience as your friends (not just potential customers)
• Put together a great presentation - it will attract people quicker.

To launch a successful crowdfunding campaign, you first need to select the type of crowdfunding platform to host your campaign.

Here are the most popular crowdfunding platforms to raise money on:

Kickstarter

Funding platform for creative projects.

• Pricing: Freemium
• Twitter: @kickstarter
• Website: kickstarter.com

Businesses using Kickstarter:

86 successful businesses are using Kickstarter ➜

Get Kickstarter ➜

Indiegogo

Crowdfunding platform for innovations in tech and design.

• Pricing: Freemium
• Twitter: @Indiegogo
• Website: indiegogo.com

Businesses using Indiegogo:

33 successful businesses are using Indiegogo ➜

Get Indiegogo ➜

StartEngine

Crowdfunding platform that has helped more than 350 companies raise $175M+ from a community of over 250,000 prospective investors.

• Pricing: Free
• Twitter: @StartEngineLA
• Website: startengine.com

Businesses using StartEngine:

Get StartEngine ➜

VC Funding

VC funding is a traditional and long process, but an effective way to raise money for your business.

The term "VC funding" refers to venture capital firms investing in businesses in exchange for equity.

The VC's (venture capitalists) are an individual or small group investing in your business and typically require substantial ownership of the business, with the hope of seeing a return on their investment.

VC's are typically the best approach for businesses with high startup costs - where it would be very difficult to raise the money on your own or through a loan.

When deciding whether to take this approach, it's important that you have a few things in place first, and know what you're getting yourself into:

Determine if your business is ready

Having an idea is not enough to get VC funding.

Typically, VC's will check to make sure you have these things in place prior to closing any deal:

• An MVP (Minimal Viable Product)
• A founding team with all proper documents in place (articles of organization, business formation)
• A validated idea with actual customers buying your product/service

Get everything in place and build a pitch deck

A VC individual or firm will be expecting a fine-tuned presentation that gives an overview of your business.

Here's what you should consider including in your pitch deck:

• Management team, their previous experience + current roles in the business
• Market challenge and solution
• Company financials - including a P&L statement, cash flow statement, and projections
• Company progress
• Investment amount - how much do you need and why?

Research the right VC to fund your business

Research the types of VC investors out there and what niche they focus on.

Then, put together a list of target VC's you want to approach and your strategy around setting up meetings.

Be sure you have everything in place (as discussed above) before setting up any meeting!

Make sure the terms and expectations are right for your business

Committing to VC funding is a big deal and a decision that should not be made lightly.

Although the money and experience from VC's can help your business quickly grow, you are also giving away a stake in the company, and the money comes with strings attached.

Be sure you do your due diligence in finding the right investor - one that truly believes in the growth and success of your business.

What Skills Do I Need To Succeed In Starting A Tour Guide Service Business?

As a tour guide service business, there are several essential skills and characteristics that are important to identify prior to starting your business.

Let’s look at these skills in more detail so you can identify what you need to succeed in your day-to-day business operations:

Business Savvy Skills

When starting a tour guide service business, there are a few fundamental business skills you will want to learn in order to be successful:

• Leadership and training skills: A great team starts with YOU. Make sure you have all company policies and training procedures in place prior to hiring your team
• Decisive and self-confident: Over the course of your career, you will need decisions that could impact your business significantly. It's important you are able to think clearly and rationally about these decisions.
• Ability to understand the financials: You don't need to be an accountant, but it is important that you are able to clearly understand and define metrics such as expenses, revenue, profit, margins, COGS, etc.
• Strategic Thinking: Setting clear goals and benchmarks, identifying opportunities, risks. Ability to effectively communicate these insights to your team.

These are a few of many business savvy skills you should have (or work on) when starting a tour guide service business.

For a full list, check out this article here.

Customer Service Skills

Friendly communication with customers and the ability to address service issues is a critical part of the job.

Here are some customer service skills you may want to consider prior to starting a tour guide service business:

• Professionalism: The way you act, present yourself, and respond to situations all leave an impression on your customer. It's important to stay professional at all times when handling customer requests or issues.
• Problem-solving: When issues arise, it's important that you are able to think quick on your feet and address the situation with a calm and clear solution
• Friendly-manner: This is an obvious one, but customers truly appreciate someone that can respond in a quick, efficient, and friendly manner.
• Proficient in writing: These skills include the ability to write well-crafted emails, service tickets, and any other programs used by the business (ie. chat functions, SMS texting)

Self Motivation Skills

Self motivation and discipline skills are critical in order to become successful in this field.

It's likely that you will find yourself starting and running your tour guide service business from home, which could mean there are more distractions for you.

Here are the basic skills needed for self motivation & discipline:

• Becoming a self starter: It's important that you are capable of independently completing a task without the help or direction of anyone else
• Listening and following directions: When you are given direction by others, it's critical that you are able to follow directions and ask the right questions in order to get your job done
• Taking the initiative in problem solving: Instead of taking the easy route, you'll need to learn to troubleshoot issues on your own as much as possible.

*Negotiation Skills

The ability to negotiate on behalf of your client will be an essential part of your every day job.

This is one of the most important qualities you can have when starting a tour guide service business, so it's important you practice and perfect these skills.

Here's what this looks like:

• Ability to analyze all parts of the deal: your biggest power is to understand and analyze all parts of the deal for your client, choose when to walk away, and know to what lengths you can negotiate a deal.
• Building rapport: This is key in the tour guide service business. You are much likely to reach an agreement and favorable terms if you spend just a few moments getting to know each other before talking about the deal at stake.
• Be diplomatic: Being in control of any situation presented and showing intention with your words are key qualities for someone in this line of work. This includes asking good questions and listening actively.

Becoming a good negotiator does not happen overnight, but as long as you are persistent with practicing these skills and putting them into action, you will see growth day by day!

Advice For Starting A Tour Guide Service Business

We've interviewed thousands of successful founders at Starter Story and asked what advice they would give to entrepreneurs who are just getting started.

Here's the best advice we discovered for starting a tour guide service business:

Paul Bennett, founder of Context ($0/month):

I always urge entrepreneurs to prioritize marketing and customer acquisition, as it’s impossible to grow a business without it. This is something you want to be ace on.

Read the full interview ➜

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Write a Business Plan

Writing a business plan from the start is critical for the success of your tour guide service business.

Why?

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

• Executive Summary: Brief outline of your product, the market, and growth opportunities
• Overviews and Objectives: Overview of your business, target customers, and what you need to run your business
• Products and Services: Specifics on the products and services your business will provide
• Market Opportunities: Analysis of customer demographics, buyer habits and if your product is in demand
• Marketing: Outline of your marketing plan and how you plan to differentiate yourself from other customers
• Competitive analysis: Analysis of your competition and the strengths and weaknesses therein
• Operations: Hierarchal structure of the company and what it will take to run the business on the day-to-day
• Leadership Team: Detailing roles and responsibilities of each manager based on their specific skill-set
• Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

• Location - Is your bank close enough that you can easily make deposits or get cash?
• Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
• Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
• Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
• Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

Setting Up Your Tour Guide Service Business (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

• LLC: All income and expenses from the business are reported on the LLC personal income tax return.
• S corp: Owners pay themselves salaries + receive dividends from profits.
• C Corp: C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness.

How Do I Pay Myself As A Small Business Owner?

Most entrepreneurs start a business to do something they love- but at the end of the day, you still have bills to pay (maybe now more than ever).

But it's important to strike the right balance - if you pay yourself too much, you could be putting your business at risk.

There are two common ways to pay yourself as a business owner:

1. Owner's Draw

Many entrepreneurs pay themselves through an owner's draw. This means that you are technically sean as "self-employed" through the eyes of the IRS and are not paid through regular wages.

At the point that you collect money from the draw, taxes typically are not taken out - so make sure you are prepared to pay these taxes once you file your individual return.

As an owner who takes a draw, you can legally take out as much as you want from your equity.

This type of compensation is suited for Sole props, LLCs, and partnerships. If you’re an S corp, you can pay yourself through both a salary and draw if you choose.

2. Salary

If you decide to pay yourself a salary, you will receive a set and recurring amount. This will be taxed by the federal government and the state you reside in.

The reality is that it can be really complicated to set your own salary, so we have some tips for you to consider:

• Take out a reasonable amount that allows you to live comfortably but also sets your business up for success
• Consider the number of hours you are working weekly + the type of duties you are performing.
• Set your salary based on your industry-standard, location, and profits (or projected profits)
• Look at your P&L statement: Deduct your own pay from that amount. This is important so you can first tackle important business expenses, and then pay yourself from the amount leftover.
• Pick a payroll schedule (and stick to it)! In the US, it's most common to pay yourself and employees twice a month.

To learn more about how to pay yourself and what is a reasonable amount, check out this article.

How To Price Your Tour Guide Services

One of the most challenging aspects to starting a tour guide service business is determining how much to charge for your tour guide services.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price, this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

• Customer demographic: Age, gender, location, etc.
• Buying habits of your customer: What they buy + when they buy
• Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your tour guide services, it's critical that you first identify all of your costs and consequently mark up your tour guide services so you can factor in a profit.

The actual cost of your tour guide services may include things like:

• The actual cost to make the product (ie. raw materials, supplies, manufacturer).
• Shipping + overhead fees
• Rent
• Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your tour guide services, you'll want to create goals for revenue + how much profit you want your tour guide service business to make.

This process is simpler than you may think:

1. Think about your breakeven cost (by completing the above step).
2. Create a revenue goal based on your break-even cost
3. Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
4. Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your tour guide services is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your tour guide services fits best in the marketplace.

All of these factors play an equal part in pricing your tour guide services, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Gross Margin Calculator: How to Calculate The Gross Margin For Your Tour Guide Services

Our calculator is designed to be simple and easy to use.

The goal is to help you set realistic expectations and understand what is considered a healthy gross margin for your tour guide service business.

Calculate your gross margin and profit margin here.

Design A Prototype

Turning your idea into a reality can feel like a daunting task - but it's critical that you have an idea of what your product will look like (even if it's just a sketch) prior to finding a manufacturer.

Here are some common ways you can design your prototype:

• Draw Your Initial Design on Paper
• Form pieces of fabric together
• Consider Taking A Generic Product And Putting Your Own Brand On It
• Try Making the Product Yourself
• Consider Building A Prototype With A 3D Printer

To learn more about how to design and prototype a product, check out our latest guide here.

Manoj Tulsani, founder of Rayna Tours dives deep into the process of designing and prototyping their product:

🚀 How To Launch Your Tour Guide Service Business

Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

1. Pick a domain name that's easy to remember and easy to type
2. Choose a Web Hosting Plan (ie. Shopify, Squarespace)
3. Make sure you choose the right theme and design
4. Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide.

Web Design

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Traditional Launch Strategies For Your Tour Guide Service Business:

There are various different ways you can launch your tour guide service business successfully.

Here are a few different strategies to get customers excited about your tour guide service business:

• Set up a Facebook page for your business. This is a great way to establish an online presence
• Host an event in a fun location with drinks & food. This is a great way to get exposure in the local community.
• Get Press! Pitch your story to the media and you may just land in an amazing publication
• Live sales to get customers excited
• Send a hand-written letter in the mail with a discount on your services to the local community/neighborhoods.

Manoj Tulsani, founder of Rayna Tours dives deep into the process of launching the business:

🌱 How To Grow Your Tour Guide Service Business

🏃🏼‍♀️ How To Run Your Tour Guide Service Business

How To Retain Customers For Your Tour Guide Service Business

Retaining customers is one of the most effective ways to grow your tour guide service business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your tour guide service business:

• Responding to comments on social media
• Send discounts (or freebies) to loyal customers
• Provide valuable content, for free
• Write a hand written thank you note
• Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Manoj Tulsani, founder of Rayna Tours dives deep into the process of attracting and retaining customers:

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

• Meeting the needs of your customers
• Establish yourself as a top provider in your industry and stay ahead of the game with competition
• Resistance to downturns/trends fading
• Create new revenue streams

Resources

We put together the best resources on the internet to help you start your tour guide service business.

Tools

• Social media tools such as Instagram, Twitter or YouTube

Books

• How To Be A Tour Guide: The Essential Training Manual For Tour Managers And Tour Guides: Nick Manning

• Start and Run a Profitable Tour Guiding Business (Start & Run Business Series)

Web Resources

• Starting A Part Time Tour Guide Service
• How To Start A Tour Business – Everything You Need To Know

Videos

• How To Become A Guide & Start A Guide Service
• Tour Guide Jobs - How To Get A Job As A Tour Guide? Tips For Getting A Job As A Travel Guide.

Case Studies

• How We Started The $35M/Year Dubai's Leading Tour Operator

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