Business services are actions that benefit companies without supplying them with physical goods. Large firms rely on them for marketing, production and safety as well as cost and convenience. These include the service industries of food, entertainment and utilities as well as the more traditional professional services such as law firms, accounting practices and consulting companies.

As a group, they represent a significant part of the economy and offer opportunities for new growth models. The EU Internal Market has taken a number of policy initiatives to support the development of business services in Europe. They contribute 11% of the EU GDP. In addition to their direct economic impact, they also support the manufacturing sector by adding value through new combinations of goods and services.

Some examples of business services are delivery service businesses that help companies purchase and transport supplies while providing convenience for employees. In-office daycare is another common business service that allows employees to balance work and family responsibilities while also saving time and money. Other business services include real estate firms that assist with finding workspaces, as well as interior design firms and landscape companies. Many companies prefer to rent or lease their office space rather than own it, so real estate services are responsible for finding and negotiating rental agreements.

Whether it’s hiring a business to deliver a product or helping them improve their internal processes, successful business services companies have one thing in common: they build systems that make it easy for customers to use their services. They set clear standards for the quality of their products and develop ways to easily track and manage their clients. They also make sure their teams are trained to know how to perform the various services they provide.

As business services companies are often involved in high-stakes interactions, they have to be able to understand and respond to customer needs quickly. They also need to provide their services at a competitive price. To do this, they need to have a clear understanding of the customer’s needs and desires as well as their motivations for using their services.

The business services industry is a huge and growing segment of the economy. The most profitable companies in this space are able to create a unique offering that is based on a clear understanding of the customer’s need and desire, and then deliver this to the customer at a competitive price. As the industry continues to grow, it is important to keep in mind that it requires a different approach than product-based companies in order to be successful.

While the traditional tools of product-based businesses can be applied to services, business services companies need a different tool kit that includes customer experience research, customer relationship management (CRM) and value proposition design. To build a successful business services company, managers need to understand the four critical elements of service design and how they interconnect. This is an essential skill for anyone looking to launch or grow a service business.