Business-to-business or B2B is simply defined as business selling product or service to a business. There are two kinds of B2B – service-based and product-based:
Experts don’t recommend this type of B2B for first-time business owners. If you see an opportunity for a product which is still not yet in the market these days, it doesn’t mean you have to grab it. Sometimes, there is no potential market for it. In other case, some businesses are already selling the same products which make the competition tough.
In order to excel in this kind of business, you have to be better than others. You must develop, manufacture and market your product efficiently and if possible, cheaper than how much competitors offer.
Another disadvantage of product-based is that entrepreneurs cannot alter the products immediately as requested by the clients. Experimentation is necessary for product development but somehow it costs the company too much.
B2B Service-based includes marketing consultation, SEO and bookkeeping services and more. This is suitable for aspiring new entrepreneurs. They can provide flexible services necessary for growth of another business. It is important to work smarter in order to reach potential customers.
As you provide versatile services, you have the opportunity to change, add or reinvent your services to explore options yet you still stick to your category.
Another advantage of service-based is that price of your services are flexible. Companies should start up with reasonable price since there are companies offering the same service. The key is to offer services that match what the customers need, and do your best.
Whichever you choose, you always consider the welfare of your consumers. Before taking the first step, you have to come up with business plan essential for progressive growth of business.