Business services are the non-manufacturing activities that help companies operate more efficiently and effectively. They include a wide range of activities such as human resources, information technology, accounting, advertising, marketing and other consulting services. Companies that operate service-based businesses often outsource these functions to reduce costs and focus on core business operations. The COVID-19 pandemic and changing work force demographics have increased demand for business services.
The Business Services industry group is comprised of a number of subsectors. GlobalEDGE categorizes the industry according to what it does for a company, not its actual outputs. This includes activities such as finance, administration, warehousing and shipping. It also includes all miscellaneous help a company may require, such as office supplies, legal advice, insurance and telecommunications.
While there are some similarities between consumer goods and business services, there are key differences. One important distinction is that services can’t be stockpiled for use at a later time. Another difference is that service-based businesses often offer a higher profit margin than manufacturing companies. The ability to charge a premium for specialized expertise is a major factor. This is why many people choose to start a service-based business based on their knowledge and expertise.
It’s also common for business-to-business (B2B) services to be similar in nature to consumer products, but with additional features and quality. For example, a cloud storage system might have the same functionality as a consumer product but with an added feature of enhanced security and redundancy.
B2B services are also essential for companies that don’t have the internal capabilities to provide their own business services, such as IT services or accounting services. Those companies that outsource these business services often see cost reductions, improved efficiencies and streamlined processes.
The B2B sector is growing rapidly, with a strong pipeline of new projects to support global growth. The industry is also benefiting from the emergence of digitalization and new communication technologies, which are enabling firms to develop faster and respond quickly to changing business needs and customer demands.
With the increasing affluence of consumers and changes to workforce demographics, the business services industry is poised for continued strong growth. This, in turn, will lead to even more opportunities for those who want to launch a career in this sector. For example, those who want to work from home and avoid commuting to the office can become virtual assistants, who help other business professionals with tasks such as client research, email management and calendar scheduling. Virtual assistants can earn up to $21,000 per month, a salary comparable to those of accountants and financial analysts. If you are interested in starting your own career in this lucrative field, consider completing a free virtual training program from Forage. Our courses teach the skills you need to get started in this exciting sector. To learn more, click here.