Intangible in nature
A service is any activity that a company provides to satisfy the wants of a consumer. It does not necessarily involve the sale of a product or another service, but does require the interaction between the service provider and the consumer to meet the needs of the consumer. This type of activity cannot be standardized, measured, or controlled like products can.
A service’s intangibility can present problems for businesses and consumers. Customers are often unsure of what they are getting, and this can prevent them from buying from a business. To overcome this, service providers should make their services as tangible as possible. This requires measuring them and providing tangible evidence that shows the quality of their services.
Provide value to internal or external customers
Business services are services provided by a company to its internal or external customers. Internal customers are employees of the organization who may request help with a document or something else. Internal customers may also act as clients and purchase items from a company. These relationships between customers and service providers are vital for the organization.
Businesses have two types of customers: internal customers and external customers. The first type of customer is a paying customer and the second type of customer is an employee. Both types of customers are crucial to the success of a business. Internal customers may be employees, owners, or shareholders.
Provide physical presence
The requirement to provide physical presence for business services varies from state to state. It is triggered when your business makes a certain amount of sales in a particular state, usually a threshold. The physical nexus requirement may be met through a number of different activities. These may include soliciting sales, installing goods or services, performing services, product training or a combination of these activities.
For example, you may provide services to businesses in another state, or you may have an office in that state. However, if you aren’t based there, you can still provide business services through the internet.