As a business, you properly provide services to customers, and you might supply these services within a location area. For example, a local pizza delivery business might only offer their food to customers within their local town or county, i.e. Leicester, or Leicestershire. Therefore, the service area is where your business would provide its services.   Here at Dynamics Tech, we work with local businesses within Leicestershire. We still have clients outside Leicestershire, and we are actively marketing in certain counties.   A plumber business might have a local service area, but also serve customers in nearby counties. You will choose the areas you can serve. Google recommends only 200 miles unless you have national or international business capacity.