Business services are activities that support businesses but do not result in the production of a tangible product. They include a wide range of services such as banking, transportation, warehousing, insurance and communication. Unlike manufacturing, which involves the creation of a physical product, business services provide an intangible benefit to customers. These services can be used by all types of companies, including government agencies and non-profits.
While some service-oriented establishments, such as a pet grooming business, can target both individual consumers and other businesses/organizations, most focus on meeting the needs of one client category. For example, a credit card processing company would market itself to business clients, while a cleaning service provider might target residential consumers.
The key difference between goods and services is that goods can be stocked and stored for future use, while services cannot. This means that demand and supply for services must occur simultaneously. Services also have a much more unpredictable nature than physical products. For example, a teacher’s instruction or a doctor’s treatment will vary from customer to customer, and therefore have less consistency than a finished product.
A good place to start when setting up a business services firm is to ensure excellent customer service. This can be achieved through a variety of methods, including offering a client self-serve portal, and communicating with customers before, during and after each job. Additionally, it is important to have clear and detailed processes in place for accepting online bookings, quoting work, scheduling jobs, invoicing clients, and getting paid.