What are business services? Business services are specialized support services offered by companies. They don’t have a physical presence and are sold primarily to companies. However, they do share some characteristics with economic services. Business services are concerned with building service systems and delivering value to customers. As a business, you act as both a service consumer and a provider. The services you provide to customers may also be called economic services. So, what are the characteristics of business services?
Business services are specialized support services
Business services are a broad category of specialized support services that help companies meet their goals. These services include marketing, accounting, consulting, legal, advertising, and logistics. They provide a wide range of expertise and special equipment. There are many subcategories of business services, so finding the right one for your company can be a challenge. Listed below are some of the most important services you can get in this category.
They don’t have physical presence
When you sell goods and/or provide services to others, your business must remit and collect sales taxes in each state where your product or service is rendered. This is called “nexus.” A business that does not have a physical presence in a state can still be subject to sales tax collection. The problem is that this requirement is much easier to meet than many people think. For example, if your business provides internet consulting services, your client-facing website cannot be considered a physical presence.
They are primarily sold to companies
Business services are those that provide a specific type of product or service that is typically sold to organizations. There are many different types of business services, including utility services such as solar panel installation and real estate services such as office space and retail space. Some business services target specific types of business customers, such as catering and event planning. Other types of business services include marketing, advertising, and sales outsourcing, media services, and even waste management and recycling. Simplicable provides a comprehensive definition of business services, revenue structure, and examples of business-to-business services.
They have low barriers to entry
Businesses that require low barriers to entry include real estate, rental and leasing, and construction. These types of businesses tend to be profitable and require little startup capital. Businesses in these sectors are usually free of employees and can avoid the costly red tape of payroll systems. Other sectors that are free of employees, but still face heavy government red tape, include construction and retail trade. Other industries with high barriers to entry include professional, scientific, and technical services, healthcare, and finance and insurance.
They require good customer service
Your customers’ experience with your business will have a major impact on your success. A recent study revealed that 68% of consumers would post about a negative experience on social media. Half of those consumers would switch brands after an unpleasant experience. Facebook users have an average of 338 friends, so one negative experience can affect thousands of people. Keeping your customers happy will not only improve their experience with you, but also help you increase sales.