Business services refer to the work that a company does in support of its operations. These can be things like IT, finance, procurement or shipping and other related areas. They can also include consulting services that help companies make decisions, such as helping to improve a business model or developing a product.
Businesses can be classified into three main categories: services, goods and real estate. Unlike products, which can be bought and sold at a fixed price, services are intangible. The value of services is intangible because they cannot be touched, seen or felt.
Services versus Goods
The two basic types of goods are physical and intangible, which are differentiated by the fact that goods can be stored for future use, while services have to be delivered when demanded. This is a major difference between goods and services, which is why it’s important to understand what separates the two.
Service industries are often a big part of the European economy, as they contribute more than 11% to GDP. These sectors are critical to Europe’s competitiveness as they enable businesses to offer customers a variety of services that complement their products.
Examples of business services
A service is a process that creates benefits by facilitating a change in the customer’s physical possessions or their intangible assets, such as information or feelings. For example, a company might hire a real estate agent to rent office space, or they might hire a doctor to provide medical care to patients.
Some businesses also provide other business-to-business services, such as financial advice or accounting assistance. These services are typically available at a flat rate or hourly rate, and they can help companies operate efficiently, save money or generate more output.
Other examples of business services are maintenance services, animal control and pest control, or tech support. These types of services help companies keep their properties clean and working properly, so employees can focus on doing the work they do best.
Business services are an essential part of a business’s operations, as they help companies run smoothly and avoid costly mishaps. They can also help keep employees happy and healthy, which can have a positive impact on productivity.
The success or failure of a service business comes down to whether it gets four things right–or wrong–and whether it aligns its core services with its business goals. That’s why we created a teaching module called the “Service Model” at Harvard Business School that focuses on the four most crucial elements of service design:
1. Get the customer right
The most important aspect of a business is its customer. If you provide a service, you need to ensure that you have a high-quality product or service for your client and that you can deliver it on time, every time. This is especially important in difficult economic times, as people may be less likely to buy services that aren’t necessary.
2. Get the work done by qualified personnel
A common mistake that many new businesses make is hiring people who aren’t qualified to perform the job. This can lead to mistakes and poor customer service, and it can cost your company time and money.