Business services are those activities that support a company, but do not result in the production of a tangible or physical product. These include information technology, shipping, procurement and finance. Companies that do not have the resources to provide a particular service internally may outsource that work. This type of outsourcing can be very cost effective.
Many people begin a service business because they want to offer their skills and expertise to customers, and have the freedom to control their schedules. These companies also often do not need to invest in capital equipment, and can quickly scale up or down as their business grows or contracts. Additionally, they can often charge a premium for their services because of the value customers place on those services.
Businesses that provide business services can help their clients reduce costs, improve efficiencies and achieve greater visibility into their service operations. However, it is important for these companies to focus on their core competencies and outsource noncore work to avoid being distracted by activities that do not add value to the customer.
A business can choose a range of service offerings, including consulting, software development, IT support and training. Regardless of the specific services offered, the key to success is delivering quality customer service and building a strong brand reputation. This will allow a business to attract a loyal customer base that can support it through difficult economic times.
In addition to offering a variety of services, a business can create additional revenue streams by providing its own products, such as cleaning supplies, computer maintenance or office furniture. This can help it increase its profits while reducing the risk of competition from cheaper providers of similar services.
A common problem that many service businesses face is that consumers tend to view their services as optional rather than essential, especially during hard economic times. This can lead to a reduction in the use of these services as consumers cut back on discretionary purchases and focus on essential items.
One way to increase the perceived value of a service is to make it more personalized. For example, a personal trainer can build a relationship with a client and customize workout programs to meet the specific needs of that client. In the case of a plumber or house painter, this can mean making the service more convenient by going to the customer rather than having the customer come to the provider.
Another way to increase the perceived value of a business service is by streamlining and automating processes. This can lead to lower costs and better compliance with standards and regulations. For example, New York State established the Business Services Center to increase efficiencies and reduce costs by standardizing and streamlining transactional Human Resource and Finance services that are common across agencies. This allows the agency to focus on its mission-based work. This is accomplished by using a combination of IT services and business process management.