Business services are the intangible services that serve as the backbone of businesses and organisations. They are a major part of the economy and include everything from supplying energy to companies to advisory services on top-level strategy. These services are often provided by professional service firms. They can range from IT services to legal advice to marketing and even travel.
Unlike product-based businesses, which create physical goods, a business service business provides intangible services for a fee. Generally, the business provides a specific expertise and experience that can help other businesses with efficiency and profitability. The services can be offered on an ad-hoc basis or for long-term contracts, depending on the needs of the client.
For example, a company may hire a business service firm to do a complete audit of their IT infrastructure. The business service provider would review the company’s entire IT system and make recommendations for improvements. This is a specialized expertise that the company wouldn’t have in-house, but it’s critical to their overall operations and productivity.
Another type of business service is financial services, which can include banking, investing and insurance. It can also include credit-card processing and other lending services to support a business. These are a vital part of any economy and can be a huge advantage for new companies.