Business services are activities that support a company’s business processes, but do not result in the production of tangible goods. They include consulting, marketing and training services. They also include utilities, telecommunications and waste management services. Business services are a large industry that encompasses a broad range of tasks.
The success or failure of a service business often comes down to four things: the efficiency of operations, how well employees understand and use technology, how much customers value the brand, and how easy it is for employees to do their jobs. Unlike product companies, in which managers focus on product design and the needs of target markets, service businesses must think about all four elements of service.
For example, a firm that hires a construction crew to renovate its office building will use the services of a project manager and supervisor, as well as architects and mechanical engineers. A good quality management team is essential to a successful service business.
Similarly, a third-party logistics company can take care of warehousing and eCommerce fulfillment for its clients. This includes receiving and storing inventory, picking orders, packing and labeling, and performing light assembly. These services reduce the need for a manufacturer to invest in expensive warehousing and shipping equipment.
A business-to-business (B2B) accounting service provides bookkeeping, tax preparation and financial advice to other businesses. It may also include collecting outstanding invoices and managing accounts receivable. B2B financial services also encompass credit card processing, loans and merchant cash advances.