Business services are intangible services that help businesses function. They are the backbone of numerous industries including IT, banking and insurance. The absence of a tangible product is the primary feature that distinguishes a business service from other commodities.
Business service jobs are a good fit for people with interpersonal and communication skills, says Jennifer Spinelli, founder of home-buying company Watson Buys. However, this career path may not be suitable for people who do not handle pressure well, she adds. Nevertheless, the number of industries offering business service careers makes it possible for anyone to find a position that suits his or her skills and interests.
The business services industry encompasses many different sectors, and almost every company in operation requires one or more of these industries for day-to-day operations. Companies need marketing, consultation, logistics (including travel and facility services), waste handling, staffing and shipping, among other business services.
While most of these sectors focus on specific business functions, some are broader in scope. For example, IT services provide technical support for a company’s computer systems and networks. Finance services manage a company’s cash flow and account balances. Procurement and shipping services ensure that a company has the materials and supplies it needs to operate. Human resources services handle employee recruitment and training.
Outsourcing is a common type of business service. These providers can take over a complete department, program or project for a company on a short- or long-term basis. These firms typically charge a flat fee for their services, which might include labor, management and infrastructure. Other types of business services are consulting and professional services. Consulting services include advisory and advice, such as legal counsel or financial advice. Professional services provide a specialized skill set, such as engineering or testing.
There are also other business services, such as those that help a company to develop its products or market to customers. For instance, a design firm might create logos, branding, publications and web graphics for a company. Similarly, a merchandising agency might offer creative ideas to boost sales of a product.
Other important characteristics of business services are that they are intangible and experiential. Because of this, they cannot be stored for future use. They must be practiced each time a company uses them. Moreover, the process of creating and consuming a service takes place simultaneously.
It’s important for a business owner to understand the inherent costs of a business service before setting a price. This will ensure that the company is charging a fair price and not overcharging its customers. Some of the main cost factors in a business service include material costs, overhead costs and labor costs. Fortunately, there are plenty of resources to help businesses determine their prices. The Small Business Association, for example, offers tips for establishing fair and reasonable business service prices. In addition, the company should consider the quality of its service as another factor in its pricing decisions. A high-quality service will translate into higher customer satisfaction and repeat business.