What is a Service Business? Overview and 5 Facts

The service industry is essential because it provides services to customers that meet their needs and make their lives easier. In service businesses, a customer’s needs are the top priority and it is the business’s mission to satisfy their clients.

Learning what services businesses are helps you understand the importance of customer service when growing a business. In this article, we discuss what elements make up a service-based business and list examples of them.

What is a Service Business?

A service business is a company that performs work for its clients’ benefit. These responsibilities may include transportation, cleaning, travel, hospitality, maintenance, or consultation.

Depending on the sort of service they are offering, firms may interact with their consumers in person or online, and consultations with customers are typically conducted prior to commencing work.

Overview of a Service Business

From a business perspective, service businesses are those that provide a commercially-motivated activity or job performance. This duty is intended to assist a business or individual in a variety of fields, including consulting, accountancy, transportation, cleaning, hospitality, traveling, and maintenance.

These enterprises are now offered not only physically, but also via virtual platforms such as websites and mobile applications.

Customers typically perceive value through intangible activities, of which customer service is a crucial component. However, this industry employs a greater proportion of workers than the manufacturing and trade sectors.

What is a Service Business?

They constitute a significant part of the majority of industrialized economies, and new technologies have widened their global influence. Service businesses are also known as the tertiary industry or sector from an economic standpoint.

Aaron has 14 years of experience in the financial business and holds degrees in Accounting & Economics and Business Administration. He has been certified as a wealth manager.

Consider all the times you paid someone to do a service for you. Perhaps you hired someone to paint your home, replace the oil on your car, or cook your restaurant meal.

You probably paid someone else to handle these things because you lacked the time or ability to do them yourself. Or perhaps you simply lacked the motivation to do the task yourself, making it worthwhile for you to hire someone else to do it instead.

Restaurants, auto repair shops, and similar enterprises are examples of service-based businesses. They are depended upon daily to serve the wants and wishes of tens of thousands of people. As long as we have limited time, limited education, and just do not enjoy doing things ourselves, service firms will continue to flourish!

Service business examples

The service business is vital because it meets the demands of clients and makes their lives simpler. In service firms, the customer’s demands take precedence, and it is the company’s goal to fulfill those needs.

Understanding the nature of service firms enables you to appreciate the significance of customer service while expanding a business. This article discusses the components of a service-based business and provides examples of each.

Athletic trainer

Athletic trainers assist individuals in achieving their fitness objectives. They work at gyms or travel to the homes of customers to do activities such as demonstrating exercises, teaching clients about nutrition, giving fitness tools, and monitoring a client’s progress.


Customers are served by housekeepers who maintain the cleanliness and sanitation of a home or company. They discuss with their clients to choose which cleaning tasks they should accomplish, such as managing garbage pickup, vacuuming carpets, mopping floors, dusting desks and light fixtures, and restocking toiletries.

What is a Service Business?

Business consultant

A business consultant provides firms with expert guidance in areas such as finance, legal, human resources, marketing, accounting, and innovation. They assist business owners in formulating a business strategy, enhancing managerial abilities, implementing business strategies, and recognizing marketing challenges.

Maintenance service

Customers of maintenance services receive expert repair services. Customers’ safety and happiness are their first concern, thus they work conscientiously and swiftly to accomplish the repairs.

Numerous repair services are accessible around-the-clock so that clients do not have to wait. Repairing and maintaining electrical equipment, air conditioning systems, heaters, washers, dryers, and kitchen appliances are some of the services provided by maintenance specialists.

Graphic design

Graphic designers provide clients with their knowledge of visual communications. Individuals engage graphic designers to produce and design assets such as websites, logos, book covers, ads, and signage. These designers connect with the client to determine what aesthetic components to add and the timeframe for the project.

Financial advisor

Financial advisers provide customers with guidance on how to manage their money. They frequently meet with customers to assess their financial objectives and choose the optimal sorts of services, including guidance on debt management, investments, insurance, retirement plans, and taxes.

Financial advisers personalize their services by developing individualized plans for each client based on the customer’s specific financial needs.

Academic tutor

Tutors offer academic assistance to youngsters and adults. Their services may include assistance with homework, explaining course information, assisting with exam preparation, and creating training materials such as flash cards.

They prioritize the customer by determining what learning materials are most effective. For instance, if a student has trouble concentrating during lengthy lectures, the tutor may divide the lecture into smaller segments so that the student may pay closer attention.

What is a Service Business?

Auto mechanic

Automobile mechanics do repairs on clients’ automobiles. They do diagnostic tests to identify the problem, then make the required repairs to restore the vehicle’s functionality.

Since regular policy, they keep the customer apprised of the status of the repairs, as it is customary to do so before making any adjustments that might affect the cost of the repair.

Transportation service

Transportation services are provided by transportation firms. Among these services are busing, flying, using the train, and ride-hailing. When carrying people, transportation firms frequently prioritize their comfort.

For example, when passengers are boarding a long-haul trip, airlines provide them with food, refreshments, and blankets to help them rest.

Car washes

Customers may choose the type of car wash they choose based on their needs. Some washes require more common stages, such as applying a double layer of wax, while others involve more complicated procedures, such as applying a double coat of wax.

The majority of regular car washes consist of washing away dirt, adding soap solution, cleaning tires, cleaning with a hose, drying with a towel or an automated drier, and polishing.

What is a Service Business?


Customers are served by landscapers who maintain their lawns. They cultivate plants, pull weeds, trim hedges, apply mulch, mow the grass, and remove leaves, after which they may meet with the client to discuss the desired appearance of the lawn.

Pool service

Pool service is routine cleaning and maintenance of a customer’s pool, including checking chemical levels, removing debris, replacing filters, and ensuring the water is safe for swimming. They may do repairs on pool equipment, such as repairing the filtration system or a leak.

Child care service

Child care offers infants and children with instruction and monitoring. This gives parents assurance that their children are secure and busy while they are at work. Schools, day cares, and day camps offer child care services, with an emphasis on teaching children, supervising activities and games, and monitoring their academic development.

House painter

Inside and exterior house painters consult with customers to choose how they would want the interior or outside painted, including discussing design aspects such as color and texture.

Before mixing and applying paint to the walls and surfaces, they prepare for painting by applying primer and protecting neighboring furniture with protective sheets. Typically, they begin by painting a tiny section of a surface to determine if the color and texture satisfy the consumer.

Massage therapy

Massage therapists assist customers with therapeutic massage treatments to alleviate stress, promote relaxation, heal injuries, and promote general health. The therapist develops a customized treatment plan after examining the client’s unique requirements.

What is a Service Business?

For instance, if a client complains of severe back discomfort, the therapist would develop a plan that focuses on the rehabilitation of the client’s back muscles.

Remote Service Businesses

A “Remote service business” is any business that, for a fee, enables a client to schedule digitally scheduled remote services with a Texas-licensed barber or cosmetologist.

Typically, digitally planned remote services are scheduled using an app, website, etc. that is controlled by the remote service provider; but, scheduling may occur through any “internet enabled” technology.

Allowable Services

There are restrictions on the services that may be supplied to clients.

Additionally, it is unlawful to provide some services as digitally planned remote services to customers.

All barbering and cosmetology services must be performed by a licensed professional, and all digitally scheduled remote services must fall within the extent of the license holder’s authority.

Notification to Operate

TDLR does not license remote service enterprises. A TDLR license is not required to operate a remote service firm. Any individual or business may conduct a remote service business, whether or not they are licensed by TDLR.

Any services supplied to consumers must be rendered by a person who possesses a valid cosmetology or barbering license from the state of Texas and operates within the scope of activities permitted by their license type.

License Holders

If you possess a barbering or cosmetology license in Texas (including for shops and salons) and desire to run a remote service company, you must notify TDLR of your intent to do so.

Non-License Holders

If you are not licensed by the Texas Department of Licensing and Regulation, we encourage you to voluntarily submit notification of your intend to run a remote service company.

Customer Notifications

A firm that provides remote services must offer specific information to clients who book services.

Pre-Appointment Information

Before providing barbering or cosmetology services, you must offer the following to the client:

Details of the individual who will provide the services, including:

  • The individual’s given and family names
  • The individual’s license number
  • A snapshot of the individual

Details about the company, including:

  • Internet webpage address
  • Number of telephone lines

Receipt for Services

Within a reasonable period following the completion of a digitally planned remote service, you must give the client with a receipt that contains the following information:

What is a Service Business?

  • The date on which the service was rendered
  • Explanation of the service(s) rendered
  • Initials and surname of the individual who rendered the service
  • The license number of the individual who rendered the service
  • The address of your company’s website
  • The phone number of your company

In addition, your receipt must include a statement reminding consumers of TDLR’s website address and phone number, as well as a notification that they may contact TDLR to make a complaint about the firm or individual delivering services.

Health and Safety Requirements

Before a licensed individual provides a digitally prearranged remote service, the remote service business and the licensee must ensure that all implements and supplies have been cleaned, disinfected, and sanitized or sterilized in accordance with applicable laws and rules.

A remote service business and licensee performing remote services must ensure compliance with all safety and sanitations requirements related to the digitally prearranged remote services being provided.

Records Management

Businesses providing remote services are expected to retain records for at least five years, including:

  • Customers are alerted prior to their scheduled appointments.
  • Customer-issued receipts
  • Health and safety standards

These records must be made available upon request to TDLR inspectors.

Access Control

If you have information that a person performing digitally planned remote services on your network is in violation of Texas laws or regulations, it is your obligation to terminate that person’s network access. This might consist of, but is not limited to:

  • Operating without a license or with a license that has expired
  • Providing services outside the scope of the issued license
  • Not meeting criteria for health and sanitation


Summary, a service business is a firm that provides clients with specialized professional assistance. In these firms, the product is not a physical good, but rather an activity that aids a third party in many areas.

Information technology, for example, is a business service that supports a variety of other business services, such as shipping, procurement, and finance. The majority of organizations nowadays are focused on providing such specialized business services.

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