The Pros and Cons of a Career in Business Services
A business services company offers non-financial support to other companies that offer products and/or services. Examples of business services include information technology, marketing and consulting, staffing, shipping, facilities management, waste management, and security. The industry makes up 11% of the European Union’s GDP.
Business services companies can be more profitable than those that sell a product, as they aren’t subject to the same expenses that come with creating and shipping a physical product. In addition, they may have more opportunities for recurring revenue and upselling services to existing customers.
However, there are some downsides to this type of business model. Because service is performed by humans, inconsistency is common, and the customer’s demands and expectations might change, requiring the provider to modify service delivery accordingly. Also, unlike goods, services can’t be produced and stored for future consumption, as they are consumed as they are delivered.
This means that, in tough economic times, consumers often cut back on their use of business services and focus instead on the products they need to survive and thrive. As a result, business service providers must work harder to make their services more valuable to customers so that they don’t consider them to be “extras” but rather as critical necessities. If you are thinking about a career in business services, it is essential to understand these challenges so that you can make an informed decision about whether this is the right industry for you.