Business services refer to any service that helps a company but does not create a tangible product. The industry encompasses a huge portion of the commercial world and provides an essential component to most economies. Some of the most popular examples include cleaning, waste management, insurance and shipping services. Companies use business services to provide a competitive advantage in their industry and keep their operations running smoothly.
Most modern business theorists see a continuum between pure service on one end and pure commodity goods on the other. Most products fall somewhere in between these two extremes and offer a combination of both service and goods. For example, a restaurant provides a physical good (the food), but also offers services like the ambience and setting of the table. Water utilities are another common example of a business that delivers both services and a tangible commodity.
A company can outsource its business services to save time and money or to gain access to new expertise that it does not have in-house. These external providers can help a company focus on its core mission and grow its customer base. In addition, business services can provide the resources that a company needs to develop innovative products and expand its market share.
While some business services are used to assist a business in producing its own products, others are more focused on the overall well-being of the company and employees. Employee wellness is a common business service that provides health programs and other employee benefits that can increase productivity.
Other important business services include financial, legal and marketing. The latter is critical for a company to compete in its industry and expand into new markets. A company that specializes in this area can provide expert advice and guidance to other businesses, helping them improve their marketing strategies and increase revenue.
In addition, business services can help a company reduce overhead costs. This can be done by outsourcing certain areas of the company or by using technology to automate processes and streamline data management. Many business services are provided through web platforms and systems or through mobile apps that can be accessed by non-technical employees.
Another benefit of business services is that they can help a company increase its employee retention and morale. This is especially true for business-to-business (B2B) services. B2B services are those that take place between trade organizations rather than consumers or government agencies. For example, a car manufacturer may perform B2B transactions with wholesalers who supply the car maker with the tires and rubber hoses it uses to build its vehicles. This type of service can save a company valuable time and money by eliminating the need to shop around for the best deals on supplies.