Business services are various tasks and activities that help maintain a company, even though they do not produce any physical commodity. Examples include marketing, consulting, staffing, travel, facilities management, waste handling, shipping and security services. This industry is also known as the service economy or the knowledge economy.
A company that offers business services may conduct them in-house or outsource them to another company. Outsourcing is often a more cost-effective and efficient option for a small business. For example, a company might hire a software company to develop an app that enhances productivity or security features for a company’s technological devices. The entrepreneur would then concentrate on building their brand and customer base while the service provider handles all of the other details like programming, marketing and customer support.
In a more traditional sense, a business that offers business services could be in the consulting or training industries. These types of businesses might offer onsite or virtual programs to train employees, create standard operating procedures and help establish clear goals for the business. They could also help the client develop a strategic plan, identify potential growth opportunities and provide financial analysis.
The success or failure of a business that offers business services can depend on four critical factors. It is important that the core elements pull together in order for a company to thrive. If they do not, a business can quickly fail. For this reason, I teach my students the importance of crafting a strong service model and how to leverage unique process-centric approaches.