Business services are a set of activities that support the operations of a business, but do not produce a tangible product. These activities include information technology (IT), procurement, shipping and finance. Business services also encompass a broad range of professional and administrative functions, from accounting to employee training. They can be provided in-house, outsourced or shared between two or more companies.
In the broadest sense, every business needs three things to thrive: a product or service to sell, and customers willing to buy it. The success or failure of a business often comes down to whether it gets these two factors right or wrong. In the case of business services, this can mean everything from delivering excellent customer experience to creating attractive and unique value propositions.
Service businesses can be found everywhere, from your local coffee shop to the dentist and tax office. These industries contribute 11% of EU GDP and are essential to European competitiveness. The growth of the service sector is being driven by new combinations of goods and services, a trend called ‘servitisation’, which is creating higher value for customers. In addition to this, the growth of digital platforms is providing easy access to business services for a wider audience.
Business-to-business (B2B) services are a vital part of any economy, and they can include anything from consulting to accounting and marketing. These services are used by businesses to improve their efficiency and profitability. The biggest advantage of B2B services is that they can be customized to meet the specific needs and goals of a business.
Another important aspect of business services is their ability to help companies reach a larger market and increase sales. For example, third-party logistics providers can handle the warehousing, picking, packing and shipping for an online store. This frees up internal resources and allows employees to focus on other tasks. These services can also be scaled up or down in response to seasonal demand.
In order for a business to be successful, it must have two things: a product or service to sell, as well as customers who are willing to buy it. While the former can be sourced through a number of different channels, the latter is more difficult to pin down. However, a few key principles can help to ensure a business has the tools it needs to succeed: