Business services are industry sectors that support the operations, infrastructure, or productivity of a business. They do not produce or deliver any physical products but provide value through the use of a service, such as consulting, software development, event planning, or insurance. These industries often focus on helping companies improve performance and productivity through innovative solutions. They may also provide the tools and resources needed to meet regulatory requirements or manage risk.
Unlike goods, which can be produced and stored for later sale, services are consumed at the same time they are provided. Thus, the production of a service requires close coordination between a service provider and its customers. The service provider must ensure that the customer receives a good experience in exchange for the payment made. This can be difficult, particularly when the service provider cannot control the customer’s response to the product or service. For example, a restaurant provides a service in the form of food but also produces a service in the ambience and setting that it offers to its customers.
Companies require a wide range of business services to operate effectively. This sector includes information technology (IT) services, procurement and shipping, finance, and warehousing. It also includes more traditional business services, such as accounting, consulting, and marketing. Companies that do not have the internal resources to provide these services may outsource them to third parties.
The European Union recognizes the importance of this sector and its potential for growth, and has established a high-level group on business services. This group focuses on developing policies that will allow this important sector to fully tap its potential and promote competitiveness. The group also promotes the role of public services as an economic model and the development of new technologies in this area.
As a result of the coronavirus pandemic, many businesses are seeking alternative ways to perform their core business services. This has created opportunities for startups with innovative ideas and new technological solutions to fill these gaps. In addition, the increased availability of online communication platforms and systems has allowed many service businesses to expand their scope.
Starting a business in the services sector involves choosing an appropriate product or service, determining the needs of your target market, and creating systems for accepting online bookings, quoting work, scheduling jobs, invoicing clients, and getting paid. It is also critical to offer excellent customer service and communicate with your customers before, during, and after the job.
If you are thinking about opening a business in the services sector, start with an honest assessment of your skills. Look at your past careers, hobbies, or interests and consider what types of services you would be interested in providing. From there, find a business idea that fits your talents and personality, then do the research to determine whether you can make it a reality. Then, start working! Good luck! —Sarah McMillan, Founder, entrepreneur, and author of the book, “The Startup Life: A Guide to Running Your Own Business” (St. Martin’s Press, 2015).
