Service-based business model

A service-based business model focuses on providing expertise, skills, or labor to customers in exchange for payment, rather than selling physical products. Examples include consulting firms, legal services, or hair salons. The core idea is delivering value through professional services tailored to meet clients’ needs. Revenue is generated based on the service provided, such as hourly rates, project fees, or subscriptions. This model emphasizes building relationships and reputation, often requiring skilled staff and quality delivery to ensure customer satisfaction and repeat business.