Starting a concierge business is a rewarding venture that combines personal resourcefulness and a knack for problem-solving with sharp business savvy. The global personal concierge market is a multi-billion dollar industry, with steady demand for these services from busy professionals, frequent travelers, and large corporations.
This guide will take you through the practical steps of validating your business concept, obtaining necessary licenses, and building supplier relationships to help you launch a successful concierge business in the U.S.
Step 1: Define your niche and map out your plan
Find your focus
Start by defining your target client. Are you serving busy executives, families, or tourists? Surveying local apartment buildings or corporate offices can provide direct feedback. A frequent misstep is offering too many services at once, which dilutes your brand and expertise.
Instead, you might want to focus on a specific niche like corporate relocation support or personal shopping. This focus makes your marketing more effective and helps you build specialized supplier relationships from day one.
Analyze the local competition
Use Google Maps and Yelp to find other concierge services in your area. Note their offerings, pricing structures, and customer reviews. This simple research often reveals gaps in the market that your new business can fill.
Estimate your startup costs
Initial costs are manageable. Budget for business formation, where LLC fees range from $50 to $500 depending on your state. You will also need general liability insurance, which can be around $400 to $700 per year.
In addition, plan for a professional website and branding, which could cost between $500 and $2,000. Add another $100 to $300 for business cards and flyers. Your total initial investment will likely fall between $1,000 and $3,500.
Here are 3 immediate steps to take:
- Identify your ideal client and one core service to offer.
- List three local competitors and analyze their online presence.
- Create a detailed startup budget based on the cost ranges provided.
Step 2: Establish your legal and licensing framework
Choose your business structure
You might want to form a Limited Liability Company (LLC). This structure protects your personal assets, like your home and car, from business debts. Many new owners make the mistake of operating as a sole proprietor, which offers no such protection. An LLC provides a formal shield.
With an LLC, profits and losses pass through to your personal tax return, which simplifies your year-end accounting. This avoids the double taxation that corporations often face. You can file for an LLC through your state's Secretary of State website.
Secure your business licenses
Once your LLC is approved, apply for an Employer Identification Number (EIN) from the IRS. It is free and the application on the IRS website takes only a few minutes. You will need an EIN to open a business bank account and hire any future employees.
Next, get a general business license from your city or county clerk. These usually cost between $50 and $150 and are required for most businesses. If you plan to offer specialized services like event planning or transportation, check for additional permit requirements with your local authorities.
Here are 3 immediate steps to take:
- File for an LLC with your state’s Secretary of State to protect your personal assets.
- Apply for a free Employer Identification Number (EIN) directly from the IRS website.
- Contact your local city or county clerk to inquire about a general business license application.
Step 3: Secure your insurance and manage risk
Key insurance policies for your business
General liability insurance is your foundation. It covers third-party claims like property damage or injury. You should aim for at least $1 million in coverage. Annual premiums typically run from $400 to $700, a manageable cost for peace of mind.
Next, consider professional liability insurance, also called Errors and Omissions (E&O). Some owners skip this, but it protects you if a client claims your advice or service caused a financial loss, such as a vendor you recommended failing to deliver.
A $1 million E&O policy might cost between $500 and $1,200 annually. Also, if you use a vehicle for business errands, you will need a commercial auto policy. Once you hire your first employee, workers' compensation becomes a legal requirement.
When you shop for quotes, you might want to contact providers that understand service businesses. Companies like Hiscox, The Hartford, and Next Insurance are good places to start. They can often help you bundle policies for a better rate.
Here are 3 immediate steps to take:
- Request quotes for $1 million in both general and professional liability coverage.
- Check with your auto insurer about adding a commercial policy for your vehicle.
- Compare rates from providers that specialize in small businesses, like Hiscox or The Hartford.
Step 4: Set up your workspace and get your gear
Decide on your base of operations
You can often skip a physical office at the start. Most concierge businesses operate from a home office, which keeps your overhead low. Check your city’s website for home-based business ordinances; as long as you have no client foot traffic, you are typically compliant.
A mistake some owners make is signing a long-term lease too early. If you prefer a separate space, you might want to consider a co-working membership. This gives you a professional address and meeting rooms for around $200 to $400 per month without a long commitment.
Equip your mobile office
Your main investments will be technology. A reliable smartphone ($500-$1,200) and a laptop ($400-$1,000) are your command center. You do not need the most expensive models to provide excellent service. Focus on reliability over high-end features you will not use.
With your hardware sorted, look at software to manage clients. A Customer Relationship Management (CRM) system helps track requests and billing. Services like HoneyBook or Dubsado offer plans from $20 to $50 per month and can automate much of your administrative work.
Here are 3 immediate steps to take:
- Confirm your local regulations for operating a business from home.
- Compare starter plans for a CRM like HoneyBook or Dubsado.
- Create a budget for a smartphone and laptop based on the price ranges provided.
Step 5: Set up your payment and billing systems
Establish your payment policies
Decide how you will get paid. For large projects like event planning, it is standard to require a 50% deposit upfront. For clients on retainer, you can bill monthly. Some new owners only accept cash or checks, a mistake that can inconvenience clients.
You should be ready to accept credit cards, debit cards, and digital wallets from day one. This flexibility shows professionalism and makes it easier for clients to pay you. Look for a payment solution with low fees and no long-term contracts.
Choose your payment processor
For a concierge business that needs to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone—just tap and done.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it is particularly useful for collecting payment after a personal shopping trip. Other processors often charge between 2.5% and 3.5%, so the savings add up quickly.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done—no waiting for bank transfers.
Here are 3 immediate steps to take:
- Decide on your payment terms, such as a 50% deposit for large projects.
- Download the JIM app to see how it works for on-the-go payments.
- Confirm you can accept all major payment types, including credit cards and digital wallets.
Step 6: Fund your business and manage finances
Secure your startup capital
Most concierge businesses are self-funded. You might use personal savings or a low-interest credit card with a 0% introductory APR. This approach avoids debt and keeps your initial costs low. It is the simplest way to get started.
If you need a small loan, you could look into the SBA Microloan program. These loans, often under $25,000, are available through nonprofit lenders. Interest rates typically range from 8% to 13%. They are designed for new businesses with limited credit history.
Manage your day-to-day cash flow
You will want to calculate your working capital for the first six months. A budget of $3,000 to $5,000 is a safe estimate. This covers insurance, marketing, software subscriptions, and any initial out-of-pocket client expenses before you get reimbursed.
Many new owners underestimate the cash needed to float client purchases. You might want to open a business credit card specifically for these transactions. This keeps your operating cash free and simplifies expense tracking for client invoices.
Here are 3 immediate steps to take:
- Calculate your working capital needs for the first six months of operation.
- Research the SBA Microloan program and its local nonprofit lenders.
- Open a dedicated business bank account and a separate credit card for client expenses.
Step 7: Hire your team and set up operations
Decide when to expand your team
Once you consistently turn down work or find yourself working over 50 hours a week, it is time to hire. Many owners make the mistake of waiting too long, which can lead to burnout and a decline in service quality. Your first hire will likely be a part-time Personal Assistant.
This person can handle client errands and administrative tasks, which frees you up for business development. Expect to pay between $25 and $40 per hour. As a rule of thumb, you should aim to keep your total payroll costs below 35% of your gross revenue.
Build your operational systems
For specialized requests like catering or security, you might want to build a network of vetted subcontractors instead of hiring full-time staff. This gives you flexibility without the overhead. Always check their insurance and references before you send them to a client.
To manage workflow, you can use a project management app like Trello or Asana. These platforms help you assign tasks to your assistant or track subcontractor progress. While not required, a certification from the National Concierge Association can also add credibility for you and your team.
Here are 3 immediate steps to take:
- Draft a job description for a part-time Personal Assistant outlining key responsibilities.
- Research local pay rates for assistants on sites like Glassdoor or Indeed.
- Create a list of three potential subcontractors for specialized services you might offer.
Step 8: Market your business and get clients
Build your online presence
Your website is your digital storefront. You can use a platform like Squarespace to build a simple, one-page site that lists your services and contact information. Once you get your first client, ask for a testimonial to feature on the site. Also, create a professional LinkedIn profile to attract corporate clients.
Focus on referral partnerships
Your best clients will come from referrals. You might want to connect with property managers at luxury apartment buildings, real estate agents specializing in relocations, and corporate HR departments. Offer a 10% referral fee on the first project to incentivize them. A strong referral can have a conversion rate over 50%.
Many new owners spend too much on ads before they build a referral base. Your first 10 clients should ideally come from networking, which keeps your customer acquisition cost (CAC) under $50 per client. This approach is more sustainable than paid advertising from day one.
Here are 3 immediate steps to take:
- Create a list of five local property managers or real estate agents to contact.
- Draft a simple email introducing your services and your 10% referral offer.
- Update your LinkedIn profile to highlight your niche and target local businesses.
Step 9: Price your services for profit
Select your pricing models
You can offer services hourly, on retainer, or per project. An hourly rate between $75 and $150 is common for general tasks. A monthly retainer, like $1,000 for 10 hours, secures recurring revenue and gives clients a small discount.
For a defined task like planning a dinner party, a flat fee works well. For larger events with variable costs, you might charge 15-20% of the total budget. Some new owners only offer hourly rates, which can limit their appeal to clients who prefer predictable costs.
Set your markups and margins
When you buy items for a client, a 20% markup on the item's cost is standard. If you arrange a service through a subcontractor, like a private chef, you can add a 15% coordination fee to their invoice. This covers your time and liability.
To see what your local market will bear, check competitor websites. Many will not list prices publicly. In that case, you can call and inquire about rates for a specific task to get a feel for their structure and pricing.
Here are 3 immediate steps to take:
- Establish your standard hourly rate and a sample monthly retainer package.
- Decide on your markup percentage for client purchases and subcontractor fees.
- Call one local competitor to inquire about their pricing for a common request.
Step 10: Maintain quality and scale your operations
Measure your service quality
To protect your reputation, you need to measure your service quality. You might want to track your client retention rate, with a goal of 80% or higher. Also, monitor your average response time to new inquiries; aim to keep it under one hour during business hours.
After each project, send a one-question survey asking how likely the client is to recommend you. This gives you a clear metric to track. Many owners assume clients are happy, but without direct feedback, you can miss small issues that prevent referrals.
Plan your growth
Once you consistently work over 50 hours a week, it is time to expand. Another benchmark is when you reach $5,000 in consistent monthly revenue. At that point, you can reinvest in better systems or your first part-time hire without straining your cash flow.
As you grow, you can use a project management platform like Asana to coordinate with assistants or subcontractors. This ensures service quality stays high. You might also consider a certification from the National Concierge Association to add credibility to your expanding brand.
Here are 3 immediate steps to take:
- Calculate your client retention rate from the last six months.
- Create a simple, one-question feedback survey to send after each job.
- Review your weekly hours to see if you are approaching the 50-hour benchmark for hiring.
Your concierge business will succeed based on the trust you build. Remember that every small task done well strengthens your reputation. You have the framework, so take the first step and start building your client list.
A smooth payment experience also builds that trust. With JIM, your smartphone becomes a card reader, so you can accept payments anywhere for a flat 1.99% fee—no extra hardware needed. Download JIM to simplify your sales from day one.
