Business Services
Business services are activities that support the operations of a company but do not produce a tangible product. This category of activity is a broad one and includes a wide variety of businesses such as transportation, telecommunications and computer consulting. These services are essential to companies because they help them remain competitive and enable employees to focus on their work without having to worry about mundane tasks like accounting, inventory management and janitorial services.
A business service is an activity that supports or enables an organization to achieve a specific goal. It can be performed either for a fee or as a component of another activity and may be provided to individuals, other businesses or government agencies. The aim of a business service is to provide value and to meet the needs and wants of its customers. Business services are a subset of economic services, and they differ from goods in that they cannot be stored for future use and must be delivered when demanded. Business services also differ from goods in that they require customer involvement to deliver their value.
The most commonly recognized type of business services is the delivery of supplies and utilities to companies. This category of business service includes delivery of office supplies, cleaning and maintenance services, and utility services such as water, gas or electricity. Another common type of business service is the provision of training to a company’s employees. This can include in-house or external training programs.
Business-to-business services, or B2B, are a form of service that occurs between trade organizations. For example, a car manufacturing company performs B2B transactions with wholesalers and retailers who supply the parts and components used to make cars. Business-to-consumer, or B2C, services are a form of service that occurs when a company sells directly to its customers.
Regardless of the nature of the service, all business services must be delivered with quality and consistency to keep the customer satisfied. This requires the business to continually update and improve its services as market demands change. In addition, a successful business must keep its costs under control and maximize its profits.
Some examples of business services are translation and interpreting, computer network support and technology solutions, and janitorial and facility services. Some of these services are essential to businesses while others are more personal in nature and designed to boost employee satisfaction and morale.
Generally, a company that provides a business service must be licensed to do so. This is often a requirement of local, state or federal law. The licensing requirements can vary widely, but typically include a license to operate in the jurisdiction where the business is located, liability insurance and proof of financial responsibility. In addition, a business must comply with all applicable labor and wage laws. Moreover, the business must be in good standing with the Social Security Administration. Failure to do so could result in fines or even the closure of the company.