Business services are activities that benefit a company but do not produce a physical commodity, such as information technology (IT) support, human resources, marketing research and logistics. A successful service business provides a unique value proposition that attracts and retains customers. The four main components of a successful service business include customer service, employee training and development, management skills, and innovative business practices.
The business-to-business (B2B) service industry includes many types of professional services, such as accounting and consulting, facility management and market research. These companies help other businesses manage their finances, operate more efficiently and increase profitability. In addition, B2B services may provide technology solutions for e-commerce fulfillment, document management and more.
In general, most businesses offer either goods or services. Goods include sports equipment, consumer electronics and clothing. Services, on the other hand, include massage therapy, car repair and tanning salons. However, some businesses offer both goods and services, such as airlines which sell travel tickets along with a variety of associated goods like bronzer lotion and tanning goggles.
A service business can be profitable if it offers high-quality, affordable services. However, the nature of service business is a challenge to some entrepreneurs, as it requires a different skill set than product business. For example, whereas products can be stored and sold over time, services cannot, and customers often compare service brands based on convenience or friendly interaction rather than on price. Therefore, many service entrepreneurs have difficulty attracting and retaining clients.