Business and Consultancy services consist of companies that provide services as well as advice and assistance to other businesses and individuals. Services may generally include engineering and design services, scientific services, information technology services, marketing services, legal and accounting services, etc. Consultancy services are usually offered on management issues such as strategic and organisational planning and financial planning and budgeting. The key factors that influence overall demand for the business service & consulting industry are the level of business sourcing, the economic cycle, changes in government rules and regulations and business confidence.
The industry revenue is forecasted to grow modestly over the five years through 2013-14. The demand for analytical services has increased as digital services are becoming more important. There is increased demand among firms to track consumer tastes and preferences that will help to improve efficiency.
The number of business and consultancy services is the highest in states of New South Wales, Victoria, Queensland and Western Australia. South Australia, Northern Territory and Tasmania contain very few numbers comparatively.
The level of concentration in this industry is low. The competition among companies in this industry is high and the trend is gradually increasing. Furthermore, barriers to entry in this industry are low so new players can easily enter the market. The level of revenue volatility in the industry is low followed by light government regulations and policies. Moreover, the industry is in the growth phase of its lifecycle.
- ATO benchmarks at (https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/About/Small-business-benchmarks/)offer a broad database of small business benchmarks, which are a guide to help business compare their performance against similar businesses in the industry.
- Differentiation is vital as it helps businesses position themselves consistently and becomes known as the low-risk expert in their market sector;
- Retaining the key employees minimises the costs associated with recruiting and training new employees;
- Business service organisations are often chosen largely on the basis of personal relationships with clients, particularly in the private sector;
Key financial drivers such as price, volume, margin, payment, receivable day and so on should be tracked, managed and benchmarked for the whole organisation, as well as for individual units, engagements and staff.