November 18, 2019

Product Vs Service

One of the most onerous task while making life changing decisions for a budding entrepreneur is to choose a right firm where s/he can build their start-up and eventually grow into a business.


So to make right decisions and know the difference between the two start-ups, one should have a clear idea about both the firms.

In this blog, we will clearly tell you the difference between product based start-ups and service based start-ups along with the perks and downsides of working in it.

Product based start-ups are like ice cream parlours and Service based are like restaurants. Both are places where you go and get delicious food. But the key difference is that, at ice cream parlour you pick your favourite flavour from a list they already have, whereas, in restaurants, we order something, then the food is prepared to suit our taste.

So in simple words, product based start-ups already have their products which they sell to a wide variety of customers whereas service based start-ups build only when a customer approaches them according to his needs. Service based start-ups do not provide tangible products that you gain ownership of, for the money to spend, whereas, a product based start-up sells you tangible products where one can gain ownership of something in exchange for money one spends.

In Service based startups, client is the king whereas in product based startups quality is the king. Let’s put some light on few important things that should be notified while starting a product or servie based startup.


People in product based startups require good knowledge about their domain. They should be familiar with the latest advanced technology and tools used in the market. Whereas, in service based startup, along with domain knowledge people require good communication skills and interpersonal skills. You should know how to deal with your clients.


From last few decades, there has been a shift from manufacturing products to a service sector. A gradual decrease in manufacturing has been observed in last few years whereas there is a constant rise in service based business.


If as a fresher you want to start your own business, you must know the basic flow of both kind of startups. In product based startups, products are manufactured before the client approaches them. Here the quality matters

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