Legal Definitions - Service business

A service business is an organization that generates revenue by performing tasks, providing expertise, or offering experiences for its customers, rather than by manufacturing or selling physical products. The value exchanged is primarily intangible, consisting of labor, skill, knowledge, or access to facilities, which customers pay for.

• Example 1: A Law Firm

  A law firm provides legal advice, representation in court, and preparation of legal documents for its clients. Clients pay for the lawyers' specialized knowledge, time, and strategic guidance. These offerings are entirely intangible services; clients do not receive a physical product in exchange for their payment, but rather the benefit of legal expertise and action.

• Example 2: A Personal Training Studio

  A personal training studio offers customized exercise programs, one-on-one coaching, and access to fitness equipment. Customers pay for the trainers' expertise, motivation, and the use of the facility to achieve their health and fitness goals. The studio provides an experience and professional guidance, which are services, rather than selling tangible items like workout gear or supplements.

• Example 3: A Cloud Storage Provider

  A company offering cloud storage allows users to save and access their digital files remotely over the internet. Customers pay a subscription fee for the convenience, security, and accessibility of data storage and management. This business provides an ongoing service—the ability to store and retrieve data—rather than selling a physical hard drive or a software disc.