Business services are various tasks and activities that maintain a company without producing any tangible product. For example, information technology, accounting, and employee training are considered business services. These types of services support numerous other business processes such as procurement and shipping. This makes them a major part of the business industry.
A service business is a company that exchanges work for payment. Its primary goal is to offer expertise, skills, and knowledge. This can be in the form of a consultation or an advice. The company may also sell goods or produce a tangible product, but these are secondary to the main focus of the business.
In three-sector economic theory, business services are categorized as the tertiary sector. This is because they are not related to the production or sale of products, as the primary and secondary sectors do.
This is why it’s important for businesses to understand how to operate in this sector. It’s a different approach to management than that of a product-based business, and it requires a lot more intangible resources. However, if done right, it can be very profitable. The success of a service business depends on four critical elements:
