Business services are various tasks and activities that help maintain a company without supplying a physical product. These include a company’s marketing, production, safety, cost and convenience needs. These can be provided by a variety of companies, including restaurants, event planners and insurance agencies. Some of these companies specialize in specific types of service while others are generalists who provide many different kinds of business services.
A number of businesses are considered to be part of the business services industry, including financial and legal services, IT consulting, human resources, janitorial and waste management, and logistics. These are often outsourced to companies that can offer them more competitive pricing. These services are a crucial component of every organization and many people rely on them to get the work they need done.
Most modern business theorists see a continuum with pure service on one end and pure commodity good on the other, although most products fall somewhere in between these two extremes. For example, a restaurant provides more than just food; it also offers ambience and table service. Even utilities, which actually deliver some kind of tangible product (such as water), are classified as business services because they do not change ownership or transfer permanent property rights.
A business-to-business service takes place between two trade organizations, such as a wholesaler and a retailer or a manufacturer and an auto parts supplier. It contrasts with business-to-consumer and business-to-government services, which take place between a consumer and an individual or government agency.
The qualifications for a job in the business services industry depend on the type of work performed. Some positions require a high school diploma and strong work ethic, while other roles require more education or experience. For example, an individual who wants to work in the janitorial or transportation industries may need a high school degree and some cleaning or driving experience. A person who wants to be a business consultant or work in a professional capacity will need a bachelor’s degree and previous sales, customer service or managerial experience.
A successful service business is defined by the way it focuses on its customers and delivers value. Creating and managing a customer-centric company requires training and standard operating procedures that all employees follow. This will ensure that customers are treated fairly and given top-notch service, which can lead to positive reviews, return business and referrals. A key strategy is to focus on the four critical elements of service design, which are described below. Getting these elements right is the difference between a profitable service business and one that fails.
