Business services are a group of activities that help a company but do not always deliver a tangible good. They include advertising, marketing, consultation, logistics (including travel and facilities services), waste handling, staffing and shipping, and administration.
Some services may be delivered to business customers only, while others are provided to both business and consumer clients. For example, a business may hire a maintenance service to keep its building clean and in good working order.
Often, businesses outsource these types of tasks to professional service companies. They can also hire external agencies to train their employees on specific skills that the company needs.
The term “service” is defined as something that facilitates a change in customer behavior or an intangible asset. For example, a restaurant may provide an experience, such as the setting and clearing of tables for a meal.
It is not uncommon for services to involve a physical good, such as an item of clothing that needs washing or cleaning. However, the majority of goods are a mix of service and commodity good.
Most modern business theorists see a continuum between pure service on one terminal point and pure commodity good on the other.
They also note that a service is not a product and cannot be stored for later use.
For example, a newspaper delivery person does not have to stock newspapers for future use; they have to deliver them when a customer requests them.
In addition, the word “service” is often used in a narrow sense that refers to the quality of customer service. Many people have the impression that a restaurant provides a meal, but it really offers an experience to the customer.
Similarly, utilities such as electricity and water can be seen as providing a service. The utility provider delivers a physical good, but it is in the form of electricity and water that the consumer consumes.
The importance of services has risen as globalization and the internet have changed the way businesses do business. Today, most companies need a combination of services to succeed.
Some of the most common services are listed below:
Financial services: The finance department at a company looks after its finances, such as evaluating taxation and depreciation. They also make sure that the business is operating at a reasonable cost.
Insurance brokerage: An insurance broker or agent is a company that sells life, health and auto insurance to the public. They also offer loan and investment services to individuals, businesses and other entities.
Entertainment services: Some businesses offer musicians for special events, such as weddings and company parties. Other services can include music lessons, dance classes or other recreational activities.
Training services: Almost every enterprise needs some kind of training for its employees. Some of these services are specialized, such as computer skills.
The industry employs about 3.3 million people in the United States. They earn an average salary of around $60,000 a year, with some earning more than $81,000 per year. The job outlook is fairly stable with a growing number of jobs and employment growth projected over the next several years.