Business services are a subset of economic services that companies offer to other businesses. Unlike product-based enterprises, they do not produce or deliver physical goods and instead focus on providing expertise, labor, and knowledge to meet specific customer needs. The industry includes a wide variety of activities such as consulting, waste management, IT support, staffing services, shipping, and administration. Moreover, the industry is constantly evolving to keep up with new demands and technology. For example, during the coronavirus pandemic, many organizations turned to business service providers to help them cope with reduced productivity. The growing importance of business services is reflected by the fact that the industry employs a significant portion of the world’s workforce and generates substantial revenue.

The five characteristics of business services are intangibility, perishability, variability, dependability, and interaction. Intangibility is the main characteristic of this type of enterprise as it is in the form of an experience that cannot be touched or stored. This also means that the quality of a service can vary depending on who provides it and under what circumstances.

A company offering a business service may offer a number of different options to its customers, such as a website hosting platform, software as a service, or defensive computing training. Regardless of the type of service provided, it is important to ensure that each customer has a positive experience with the business. This can be achieved by making the service available when it is needed and by ensuring that the quality of the service meets the customer’s expectations.

In order to be successful, a business must create a market for its service and develop ways to differentiate it from competitors. This requires a well-designed offering, a skilled workforce, and innovative strategies for managing costs and increasing efficiency. Moreover, the nature of business services necessitates that customers play an active role in its delivery and must be involved in the process of designing or selecting the service they receive.

For instance, a court reporter is an expert in both oral and written communication and can provide services such as preparing transcripts of hearings or interpreting in court proceedings for people who are deaf or hard of hearing. Similarly, an actuary is a professional who works on projects ranging from evaluating financial risks to assisting lawyers with legal research and record maintenance.

Consequently, this type of business requires less start-up capital than a product-based company because it does not have to invest in producing physical items. In addition, it can be more easily scaled as it is dependent on the number of customers who are willing to pay for its services. Nevertheless, this type of business faces challenges that are unique to its industry, such as cost competition, the need for continuous innovation, and a highly variable client base. This article examines how these challenges can be overcome by focusing on the customer and developing creative strategies for delivering distinctive value. These strategies include introducing a self-service alternative, offsetting expenses with operational savings, and creating a partnership model with customers.