Business Services

The Business services industry is a large sector that encompasses many different categories of business operations. It includes such things as advertising, consultation, logistics (including travel and facilities services) and staffing services to name just a few. Almost every business in operation needs some form of these non-financial services at one point or another.

Businesses that offer Business services provide intangible value to customers in exchange for money. These services are not a product that can be touched or felt but rather a process that takes place in the mind of the customer. Business services can be offered to both consumers and other companies, the latter known as business-to-business or B2B services.

Other types of business service include training services, management services and financial services for example. Training services are offered to employees by internal departments such as Human Resources but can also be provided by external agencies such as an outside trainer or a consultancy firm. Management services are offered by companies like Ernst & Young who provide advice to businesses on their finances, taxation and reorganizations. Financial services are offered by companies who provide a variety of services to companies including loan and credit facility management, investment banking, asset management, insurance and debt advisory.

A key challenge of managing a Business services company is that unlike a company that produces a physical product, the value of a service cannot be directly measured or transferred between parties. As a result, it can be hard to manage a business that provides services and to make sure that the inflow of revenue is higher than the outflow of expenses.