B2B Business

B2B is defined as a Business selling 2 other Businesses. Here the customers are businesses and the dynamics of this business model is quite different from the B2C (business to individual consumer) model.

The reasons for the B2B business model being different are many.

Businesses are more Informed and less Impulsive than Individuals – When a business buys a product/service, it tends to put in more research and get more information before actually making the purchase.

Sales Lead Times are higher – Since the customer takes more time to decide, the lead times for the sale are higher.

Lower Volumes – Since the number of businesses is much less than the number of people.

Bigger Ticket Sizes

More Manually Driven – Sellers need to offer more manual intervention before concluding a sale. A physical meeting is important for a buyer as it builds trust.

B2B is a model which has not received as much interest as the B2C counterparts. Some reasons for this maybe the following.

Scaling is difficult – Since manual involvement is generally required to conclude a sale, scaling is more difficult and requires a sales force.

Higher Customer Acquisition

Despite these limitations, the B2B opportunity is huge and presents an opportunity for budding entrepreneurs to find a gap in it.