Business services are industries that support the operations, infrastructure and productivity of a company. These industries do not produce or deliver a tangible product, but rather help companies function more efficiently and reach new customers. For example, a company may hire a consultant for help with marketing or human resources. Similarly, a construction firm might employ an architect for advice on building design or an IT professional to provide technical support. In this article, we will take a look at five characteristics of business services and some ways to get involved in the industry.
Business-to-business (B2B) business services are any service that a company provides to another company, such as IT services or accounting services. These services are often more complex than those provided to end consumers, as they require the services of a specialist or expert. A company may also outsource certain business services, which can reduce its overhead costs and allow it to focus on its core activities.
Intangibility
The biggest difference between goods and services is that while goods can be stored for future use, services are consumed at the same time as they are produced. This means that businesses need to continually update their offerings to meet customer demand. Furthermore, because service production is so dynamic, it’s important that a company can react quickly to changes in the marketplace.
Costs of services
Unlike other industries, the costs associated with business services can be difficult to quantify. In addition to labor costs, which vary according to the type of work being performed, a service business may incur additional costs for materials and other necessary equipment. Additionally, many business-to-business services must be customized to each customer’s unique needs.
This makes it particularly challenging to determine how much to charge for a given service, but there are several things that can be done to help establish fair prices. For instance, the Small Business Association offers some tips for business owners and service providers seeking to create pricing structures that are both effective and fair.
Involvement of customers
Compared to other types of industries, the involvement of customers in operational processes in business services is typically higher than in other sectors. This can be a positive or negative thing, depending on how well the customer is treated. For example, a customer who dithers at a fast-food counter can make the entire process of serving other customers less efficient for everyone behind him.
Because of the broad range of industries that fall under this category, there are plenty of different career paths available to people interested in working in business services. Some jobs in this field don’t even require a traditional office, so they are ideal for people who want to avoid long commutes or need a flexible schedule. Others, however, do require a specific degree or certification. For instance, a home-buying company might hire a real estate agent who has a bachelor’s degree in business administration. For more information on careers in business services, visit our career resource center.