Business services are activities that support a company but do not produce a physical commodity. This broad category of work includes consulting, marketing, warehousing, travel, waste management, staffing, shipping and administration. Information technology (IT) is a critical business service because it aligns IT assets with the needs of the company and supports business goals. It also helps the organization manage costs and improves communication between departments.
Because service businesses don’t produce a tangible product, they must offer something that meets the needs of a specific group of customers. They may differentiate themselves by their ability to meet a need more quickly or inexpensively than other competitors, for example, by offering extended hours of operation, friendly interaction, or closer proximity to the customer.
Some examples of business services include animal control or pest control, maintenance professionals to fix appliances and other equipment, and tech support services to troubleshoot computer issues. Companies often outsource these services to specialists in order to focus their internal resources on core operations.
A thriving business service business requires a strong, centralized leadership team. Without such a team, revenue-generating line managers can overrule shared services managers, and the organization’s performance suffers. For this reason, it’s important to establish a clear vision of the value of a service business from the outset. This will help ensure that the company can successfully deliver on its promises and attract and retain a loyal customer base. For more tips and advice on starting a successful business, check out this helpful guide.