What is a Service Oriented Business? - Explained

There are multiple businesses and business types in the world. Each and every business is different from one to another and there are some businesses that do have similar characteristics of another business.

To Whom

There are many businesses sustaining by selling a service to a consumer, business, or to government. Also knows as business to consumer, business to business, and business to government. 

Among the two business major business types, service-oriented businesses do have a wide range of potential to become sustainable in even the hard times. By nature itself, the service-oriented businesses are agile because there are fewer machines and equipment involved in a service-oriented business.



Hospitals are service-oriented businesses generating revenue by providing health care services to patients who are sick. Insurance is a service-oriented business that provides insurance plans for consumers who want to insure life, car, pet and etc... Legal Companies are service-oriented companies that focus on providing legal services to their customers.

Above all the examples, service-oriented businesses are having fewer products and can be agile all possible time compared to Product Oriented Business.

Demanded by Humans

Unlike many of the product-oriented businesses, service-oriented businesses are demanded by humans to their lives smarter and stable. A lot of humans depending on better health care facilities by hospitals in their daily lifestyles. Legal Assistance from a service-oriented business such as legal company, Tax advice from a tax consulting company have become daily needs by humans.

Becoming a Service-Oriented Company

It's simply the skill set that is surrounded by a business becoming a service-oriented business. By analyzing closely most of the service-oriented businesses, there should be one or more than people who are surrounded by the core service business. Most of the legal companies are formed by lawyers who do have LLB. Most of the hospitals are started by doctors who do have a medical degree. Most of the Tax consulting companies have been started by the tax consultants who are by the profession itself. Most of the construction firms are started by civil engineers.

If you don't the right skill set to start a service-oriented business or if you don't a partner who does have the right skills set to start the service-oriented business, that means there's a big chance of getting the business to bankrupt state by a very limited time period.