The business services industry is a large and growing sector of the economy. Businesses of all sizes need the services offered by this industry including advertising, consulting, marketing, logistics, waste handling, staffing, shipping and administrative services. Business service providers are able to improve the relationship between customers and manufacturers, reduce costs and increase efficiency.
Services are a broad category of economic activity and are distinguished from commodity goods by their intangibility. Examples of business services include:
A successful service business requires a different management approach from a product business. While a product manager must focus on the characteristics that buyers value in their products, a service-business manager must concentrate on delivering a satisfying customer experience. The success or failure of a service-business strategy often hinges on whether the company can get four things right.
Unlike products, services cannot be stored or delivered at a later time. In order to meet the demands of customers, a service must be produced and consumed simultaneously. This makes it more challenging to plan and control than production of a physical product.
The first step in developing a business services plan is to understand the needs and desires of your target market. Good business plans describe your ideal customers clearly, and it is important that you identify the type of person or firm that you want to serve. This will help you create a value proposition that will set you apart from the competition.