27 Examples of a Service Business with Explanations

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Service businesses are characterized by their high level of specialization in the service they provide. They usually focus on offering a skilled service specifically tailored to the needs of their potential clients, although there are cases of service companies that provide more than one service or operate as a hybrid service business offering products and services. In this article, we will discuss what constitutes a service business as well as provide examples of a service business.

Service companies offer intangible elements to their customers to satisfy a specific need. Its purpose, like the companies that offer products, is profit. For example, companies that provide gas, water, or electricity or are linked to sectors such as tourism, hotels, culture, or communications.

Characteristics of a service business

The services are characterized by being:


They cannot be manipulated.

The reputation of suppliers is taken into account by customers when measuring their quality and making decisions.

They are part of a process.

They are not transported or stored.


They are produced and consumed at the same time.

They are offered locally and on-site.

They cannot be stored or inventoried.

Its quality can only be measured once the service has been performed.


Once consumed, they cannot be consumed in the same way again.

If it is not used, it generates a loss.

Since they cannot be stored, the company misses out on opportunities if they are not used to their full capacity.

Accessible to customer participation.

The client can request its customization, according to their particular needs.

Human capital makes the difference in service companies. Your success or failure in the market depends on it.

Business sales require “empathy” on the part of the provider.


They are typically not repeatable in the short term.

For the customer, there is always a variation in the service.

The perception of quality varies according to the client.

They can be adapted to the situation and the client.

27 examples of a service business.

Contractual Service Businesses

They offer their services, often locally, on a continuous and regular basis. Due to this attribute, it is common practice for these companies to maintain contracts with their clients, to whom they offer discounts and/or special rates. For example:

  1. Contractors
  2. Real Estate Agents
  3. Accountants
  4. Nursing Homes
  5. Financial Advisors
  6. Gyms
  7. Cleaning Services
  8. Pool Cleaner
  9. Legal Services
  10. Messenger Services
  11. Child Care Providers
  12. Landscapers
  13. Banks

Service businesses offer specific services or on a by-project basis. 

Their clients turn to service businesses to satisfy a specific need, which is not usually provided on a daily or weekly basis. The relationship between the client and the company is temporary and there is no contract that guarantees repeat hire. For example:

  1. Medical Practices (dermatologists, doctors, physical therapist, etc.).
  2. Home repair (carpenters, roofers, plumbers, electricians, etc.).
  3. Personal care (hair stylists, massage therapists, etc.).
  4. Car washes
  5. Tutotoring
  6. Event Planners
  7. Catering

Hybrid Service Business

They offer a service along with the sale of a tangible product. For example:

  1. Auto mechanic
  2. Hospitality (hotels, restaurants and Tourist attactions)
  3. Bicycle repair
  4. Movie theater
  5. Night Club
  6. Restaurant
  7. Appliance seller who also offers installation or repair services

Local service businesses rely heavily on the relationships with customers in their local community and providing customer outstanding service is their highest priority. Understanding what constitutes a service business will provide you with a better comprehension of how important customer service is when looking to start or grow your service business. Do you own a service business and need help growing your business? We can help schedule your free consultation today.

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