Business services are a broad group of companies that provide non-financial support to other businesses. The industry includes advertising, marketing, consulting, logistics (including travel and facilities), waste handling, staffing services, shipping, administration, and security services to name a few.
The Business services sector consists of about 420,000 establishments in the United States, according to Dun & Bradstreet First Research. They have combined annual sales of about $950 billion.
This industry is a major contributor to the economy and consists of many different segments, each with its own unique set of characteristics. Its growth potential is significant and is fueled by increased technological advances, which make it easier for companies to outsource their services.
Despite the potential of this sector, there are still some challenges to overcome, such as low average productivity and persisting legal barriers. The EU is looking to remove these obstacles through legislation and policy actions.
Designing a Profitable Service Model
To succeed in the business services industry, managers must design their offerings around four key elements: quality, reliability, customer value and efficiency. This approach is known as the service model and is developed by Harvard Business School students in a core teaching module called “Service Design.”
A high-quality service will meet customers’ needs while also offering them the kind of experience they want, says John Streitfeld, a management professor at MIT who has published several books about service design. To succeed in this field, managers must get all of the service design components working together, because a poor service can kill a business.
Start with a Good Idea
The hardest part about starting a service-based company is coming up with a great idea in the first place. However, once you’ve found a profitable niche, you can develop an effective marketing plan and start attracting customers.
You can also build a strong network by networking with other professionals in the industry. You can do this by attending conferences, joining professional organizations and participating in social events.
Become a Better Employee with the Right Tools
One of the best ways to improve your work life is by obtaining professional skills and resources that will benefit you and your employer. This can be done by acquiring a degree, taking on internships or getting training in a specific skill.
Another way to boost your career is to obtain a job with a company that provides business services. This way, you can gain experience and develop skills in areas like human resources, information technology, or administrative roles.
Whether you’re just starting out or are ready to take the next step, the business services industry offers a variety of job opportunities to suit your preferences and abilities. Plus, if you’re interested in working remotely, many jobs within this industry can be accomplished from home.
The US business services industry consists of about 420,000 single-location and multi-location establishments with combined annual sales of about $950 billion. Its competitive landscape primarily involves small firms, as well as large ones that are more likely to have the financial and other resources to compete.