A business service is an activity that benefits a company without providing tangible products. Companies rely on these services for marketing, cost and safety reasons, among others. This article discusses the different types of business services, such as a catering service and a shipping and distribution company.
Unlike traditional product businesses, which focus on creating goods that their customers will value, service businesses focus on designing experiences that their customers want to have. This is an important distinction because it means that instead of focusing on the characteristics that make up a good, a service business must focus on creating an attractive experience for its customer base.
There are many types of business services, from the more obvious to the less obvious. For example, an architectural firm provides a service to a client by helping them design a new building or room. This is an experience-based service that does not result in the creation of a physical good, but rather, the construction of a building. Other examples of business services include shipping and warehousing. A company may use these services to ship their products to customers, and they also offer warehousing services for other companies to store their products until they are ready to be sold.
Companies need business services to help them stay productive and efficient. For instance, a company that wants to expand its warehouse needs to hire construction workers. A construction crew will get the job done quickly and efficiently, saving the company time and money. Likewise, a company that is struggling with an infestation of rodents or insects needs to hire pest exterminators. These professionals will take care of the problem safely and quickly, allowing the company to continue operating normally.
Insurance is another business service that every organization requires. An insurance agency can help a company with its life and health coverage, as well as property and liability. An agency can even help a company create and manage its employee benefit plans.
Other examples of business services include payroll, legal services and human resources. Payroll services can keep track of employees’ wages, and they can also process tax forms. Legal services can provide legal advice and assist with legal proceedings. Human resource services can recruit and train new employees, and they can also provide benefits such as workout facilities or transportation.
The business services industry is a major part of the economy, and it contributes 11% of the EU’s GDP. The industry has significant untapped potential for growth, and a range of policy actions are currently underway to stimulate competitiveness in the sector. This includes measures such as the Services DirectiveEN*** to reduce barriers to cross-border trade and investment in this important sector. The EU’s Internal Market legislation also aims to remove obstacles to competition and increase productivity in the sector.