Business services are the activities or tasks performed in a business that do not produce a tangible product. They include information technology, which supports many other business services such as procurement and shipping.
The Business Service Industry is a large sector that encompasses a wide range of businesses. These include advertising, marketing, consultation, travel and facilities services, waste handling, staffing, administration, security and shipping to name a few.
They are often critical to a country’s economy, contributing over 50% of GDP in most low-income countries. They also have some specific characteristics that can help you differentiate your business from the competition.
Unlike products, which can be stored for later use, services are delivered as soon as requested and need to be exclusively done each time. This intangibility makes them difficult to market and develop a brand, but they have the potential for long-term growth and profitability.
A service-oriented business has to be designed carefully in order to be successful. It must effectively meet the needs and desires of a group of customers who are willing to pay for your services.
In the current economic environment, most consumers are cutting back on their service spending and focusing on what they need to survive and prosper. This is why it is important to consider your services in a different light and make sure you are offering them for the right value.
In addition to the six questions above, you will also need to consider your pricing strategy, staffing levels, and revenue projections to determine what your business will be able to sustain. Once you have a clear picture of your business, you can then begin to identify your competitors and develop advertising strategies to reach potential customers.