Ryan,
A late response... I just started getting the same error as you on a fresh installation.
You need to get the runit service running before you can control it with runsvctrl. To do this do the following as root:
root$ runsvdir /service
You can now use runsvctrl to control the service.
root$ runsvctrl up /service/service1
The runsvdir should create the supervise directory that is missing as stated in your error message.
Cheers,
Nick.