A business needs two things to exist: a product to sell and customers willing to purchase that product. While products can be manufactured by the company or bought from suppliers, a business must hire outside help to perform other essential functions that aren’t related to creating or selling a tangible good. These are called business services.
Some of the most well-known business services include janitorial, cleaning, animal control, and waste management. But, the business services industry is much more diverse than these examples. In reality, a business might need an accounting service, information technology support, legal support, shipping and logistics, or any number of other specialized auxiliary help.
These business services can be offered on a contract basis or as a fee-for-service. In the latter case, the service provider charges a client for every hour of work completed. For example, a sales professional may charge for meetings with potential clients or for cold calling.
Typically, businesses offer business services to other businesses (B2B) as well as end consumers (B2C). Companies need these auxiliary services to run smoothly and efficiently. For instance, a cleaning service helps keep offices and other workplaces clean, which increases productivity and minimizes health risks. Other business services include animal control, pest extermination, and maintenance service professionals who fix broken appliances and other equipment.
Unlike physical goods, services can’t be stored or saved for future use. This means that demand and supply for business services must be closely linked in order to ensure profitability.