Business Services

What is Business Services?

Business services can be defined as various tasks and activities that help maintain a business, despite not delivering any tangible product. An example of business service can be information technology which assists numerous other business services like procurement, finance and shipping. In today’s world, most of the trades are interested in these exclusive services and cover a major part of the industry.

Business Services Characteristics

It can be classified into five characteristics:

  • Intangibility: With reference to business services introduction, services do not have any physical form i.e. they can only be practised, instead of produced.

  • Inconsistency: Services do not have any consistency. They need to be exclusively done each time.

  • Inseparability: Both consumption and production takes place at the same time for services.

  • Inventory: A person cannot stock services for future use; it has to be delivered when demanded. This is one significant difference between goods and services, as the former can be stored for later use. 

  • Involvement: Customer involvement is required in providing any kind of service.

What are the kinds of Services Available?

1. Business Services

They are used by organisations to accomplish their trade activities. Banking, warehousing, marketing, inter and intra-departmental communication, etc. falls under business services.

2. Social Services

These services are given out voluntarily to promote equality and help people.

3. Personal Services

This type of service varies from person to person. It can be a tourism service, food service, etc.

A form of service known as business to business service takes place between trade organisations. It depicts the involvement between a wholesaler and a manufacturer, or a retailer and a wholesaler. They stand in contrast to business to consumer and business to government transactions.

For example, a car manufacturing company performs B2B transactions with a wholesaler company which sells tyres, rubber hoses and other necessary materials which are needed to build a vehicle.

Types of Business Services

Let’s take a look at some of the different business services.

1. Software Services

Technology is required almost in every field. Software services comprise the major part in it. They range from anti-viruses to various operating systems and etc. Furthermore, another department where software services are vital is banking. Nowadays, transactions have become more accessible through online banking. Hence, software services need to be upgraded to combat hacking and virus threats.

2. Consultancy Services

Consultancy services are provided by numerous organisations irrespective of their field of specialisation. These services are given for business expansion projects, commercial projects, etc. Moreover, these services also help a company to comprehend the industry environment and the competition in the market.

3. Training Services

Many enterprises require these services. Though most companies are well enough to give training to their employees, they also take help from external agencies. These agencies train the employees with soft skills and other necessary requisites to work in the company.

4. Financial Services

It is one of the most important services of an organisation. Financial services are taken for evaluating taxation, depreciation, valuation and expansion. The finances of a company is looked after by the finance department, but some also require additional support from financial advisors.

5. Marketing Services

Companies call for marketing services to reach out to a broader audience by creative advertising and skilful marketing. There are specialised agencies that help with these services. These companies allow agencies to get innovative marketing ideas to receive quality work. An organisation prefers investing in a third-party service provider as they present them with quick feedback and execute marketing strategies efficiently.

6. Travel Services

Many times companies need to travel to various places due to business requirements. Here, travel services come into play. These companies help with scheduling and reservation required for the journey. 

7. Security Services

This type of function is considered necessary for a company to keep their goods and products secure. Security services employ individuals to stay physically present in the office premises. It is a part of financial services where it also provides safety for fraudulent dealings. Government and banking sectors hugely avail security services.

8. Waste Management Services

Management of waste is crucial in preventing pollution. Wastewater and materials produced from a manufacturing plant must be recycled and passed carefully to minimise the leakage of toxic products that may affect the environment. Waste management services guarantee that the waste generated from a plant is less harmful or less polluting, and helps in keeping people and environment healthy.

Apart from these, there are various personal services which individuals may opt as an independent way to earn money. Check the below list of service business ideas:

  1. Personal fitness trainer

  2. Makeup artist

  3. Graphic designer

  4. Corporate event planner

  5. Party planning services

  6. Pet sitting

  7. Private school application consultant

Here is a Chart that Gives a Clear Idea about the Difference in Goods and Services:

Basis for comparison

Services

Goods

Definition

These are the facilities and benefits given by other people

The materialistic items that can be touched, seen and felt and can be sold to consumers

Nature

Intangible

Tangible

Transfer of ownership

No

Yes

Evaluation

Complicated

Very easy and simple

Return

Once provided, services cannot be returned back

Goods can be returned back

Separable

Services cannot be separated

Goods are separable

Variability

Diverse

Identical

Storage

It cannot be stored

It can be stored for future use and other purposes

Production and consumption

It occurs together

A time lag is present between production and consumption


For a more comprehensive understanding of business services meaning, you can check more topics on Vedantu. You can also check our app to access the collection of best-in-class coaching materials on the go.

FAQ (Frequently Asked Questions)

1. Distinguish Between Goods and Services.

Goods are those items which have a physical form and customers can purchase it by paying its pre-determined price. On the other hand, services are facilities and support given by individuals and organisations. The former one can be touched, felt or seen, whereas the latter one is intangible.

2. Give some Demanding Service Business Ideas.

Some service business examples which have a huge demand among consumers are - Movers and packers services, renovation and interior design service, catering services, consultancy services, etc.

3. What are Intangible Products and Services?

Services and products which cannot be seen, touched or felt are considered as intangible. They do not have any physical form. An example may be tax filing services.

4. What are the Benefits of Marketing Services?

Marketing services are entitled to attract attention, promote a brand and increase the sales of a business organisation.