any two drawbacks of the service which is being provided
Answers
Disadvantage: Difficult Valuation
Your service business is harder to value than a manufacturing or retail company. Those businesses have inventory, equipment and other hard assets that have a value. You can start a service business with a phone and very little equipment. While this makes for a simple start-up it can make for difficult valuation. You have to establish a track record of sales and some reliable sales projections to convince lenders of the value of your company.
Disadvantage: Demand Cutback
In difficult economic times, consumers usually cut back on services. They focus on products they need to survive and prosper, and services are often looked upon as extras. For example, a person who has been paying for oil changes might decide to do his own oil changes to save money. A person who has been hiring a dog walker may decide that she can to the job herself and save money. You should evaluate your service to see how you can make it more valuable to your customers so they see your service as a necessity.