Start Your Service Business with Justin Welsh's Method

Key Takeaways

• Your current paycheck is proof that you possess a skill worth a business owner's money.
• Starting as a sole proprietor is the fastest way to test a service idea before spending $500 on LLC filings.
• LinkedIn can act as a free storefront for solo service providers like bookkeepers and copywriters (plus consultants).
• Keep $1,000 in a separate business-only account to stay ahead of quarterly tax obligations.

Nearly 50% of people who start a business do it to be their own boss, according to 2023 data from the Small Business Administration. This shift often starts with a moment of frustration at a desk in a beige office building in suburbs like Dublin, Ohio or Plano, Texas.

Entrepreneur Justin Welsh recently shared a perspective that flips the script on employment. He said on X that every paycheck you get is evidence that someone else figured out how to monetize your skills. If a company pays you $3,000 every two weeks, they're likely making $6,000 or $9,000 from your labor. You're the product. To start your own shop, you simply have to become the person who sells that skill directly to the customer.

Why is your paycheck a business blueprint?

Think of your job as a paid internship for your future company. If you spend your day fixing broken HVAC units for a big contractor, you already have the technical part finished. The missing piece is the sales engine. Welsh argues that the marketplace has already validated your work. You don't need a fancy lab or a $100,000 loan to see if people want what you do. The fact that you're employed proves they do.

For a solo bookkeeper in Tampa or a graphic designer in a small town, the first step is realizing you can cut out the middleman. You're currently selling your time at a discount. When you start a business, you start selling your results at a premium.

How do you use LinkedIn as a storefront?

LinkedIn isn't just for resumes. It's a giant room full of people who have problems they're willing to pay to solve. You don't need to post 'hustle' quotes or talk about 'growth hacks.' You just need to show people you can solve one specific problem.

A 3-person print shop in Georgia might use LinkedIn to connect with local event planners.

A solo virtual assistant might show how they saved a client 10 hours a week. This is what Welsh calls monetizing your skills. You show the work, you explain the benefit, and you ask for the sale. It costs zero dollars to set up a profile that tells people exactly what you can do for them. Unlike TikTok or Instagram, the people on LinkedIn are already in a 'buying' mindset.

What are the first legal steps for your shop?

You don't need to be a corporation on day one. Most people start as a sole proprietorship, which is the default if you just start working for yourself. However, you should quickly look into getting an EIN (Employer Identification Number). Think of this as a Social Security number for your business. It's free to get through the Internal Revenue Service. (Disclosure: we may earn a commission if you sign up through our links for legal filing services.)

Using an EIN instead of your personal number makes you look more professional to vendors. It also helps you open a dedicated business checking account. Keep every dollar from your LinkedIn clients in that account. Don't mix it with your grocery money. This makes tax time much less painful when you've to file a Schedule C.

1. Search for your business name on the USPTO database to ensure it isn't taken.
2. Apply for your free EIN on the IRS website.
3. Open a separate checking account at a bank like Chase or a local credit union.
4. Update your LinkedIn headline to say exactly who you help and how you do it.
5. Reach out to three people in your network and offer your service for a flat fee.

Starting this way reduces your risk of running out of cash. You're building on top of skills you already use every day. If you want to learn more about the tax side of this move, check out our guide on how to Ditch Sole Prop Risk for LLC Asset Safety.

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📋 Disclaimer

This article is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations change frequently, and the information presented may not reflect the most current legal developments. Always consult with a qualified professional (CPA, attorney, financial advisor) before making business decisions based on this content. MyBizNerd may receive compensation through affiliate links, but this never influences our recommendations.

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