Business services are activities that support the primary operations of a business. These may include marketing, consulting, logistics and other auxiliary functions. Almost every company requires some kind of business service to function properly. These activities can be outsourced to companies that specialize in those areas. This enables businesses to focus on their core activities and leave noncore tasks to other companies. Business services also help reduce costs and improve efficiency.
These types of services are called business-to-business (B2B) services. Many countries have large B2B economies that contribute a significant percentage of their GDP.
Some of the most common business services are computing, telecommunications and management. They can be delivered in a variety of ways such as as an onsite defensive computing training or software as a service. Other business services are purely advisory in nature such as the advisory services offered by investment banks regarding business financing or top level strategy such as mergers.
Other characteristics of business services are intangibility and inseparability. Intangibility means that they do not produce a physical product and cannot be stored like inventory for use at a later date. Inseparability refers to the fact that both service production and consumption occur at the same time, unlike goods that are produced first and then shipped or sold to customers.
Choosing a career in business services can be an excellent option for entrepreneurs who want to make money quickly. For example, a copywriter can create content for clients and receive payment almost instantly. This is a contrast to an entrepreneur who produces a physical product, which can take months or even years before it starts making money. However, a career in business services can be stressful if you don’t have good interpersonal and communication skills. You need to be able to collaborate well with other people and work under pressure, especially in the case of fast-paced or high-profile firms.