What is a Service Business?

Definition: A service business is a company that provides certain professional support to its clients. In these businesses the product is not a tangible one, instead it is an activity that helps a third party at different areas.

What Does Service Business Mean?

From a business standpoint, service businesses are those that provide an activity or the performance of a task with a commercial purpose. This task is directed to help a business or an individual in subjects such as consulting, accounting, transportation, cleaning, hospitality, traveling or maintenance, among others.

These businesses are now delivered not just physically but also through virtual platforms like web-based systems or mobile apps. Customers normally perceive value from an intangible activity and customer service is an essential part of it. On the other hand, these industry hires a bigger portion of employees than manufacturing or trade businesses. They are a big part of most developed economies and new technologies have expanded the reach from domestic to global.

From an economic perspective, service businesses are also known as the tertiary industry or sector.


Creative Solutions LLC is a digital media agency with a few years in business. Its business model is to provide content design and digital marketing campaign advice to its clients through online meetings. The company doesn’t exist physically in terms of office space, instead, its employees all work from home and Creative Solutions provides an online platform where clients can establish a contact with a business’ representative within seconds through live chat, video conference or e-mail.

This has allowed the company to offer low-priced items that fit the needs of budget-conscious small to mid-sized companies. Last year the company attracted more than $2,000,000 in revenues through this innovative business model that is changing the way the advertising industry functions and has raised some eyebrows from its more traditional competitors. Creative Solutions now serves 4 different English-speaking countries including the U.S., Canada, England and Australia.

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