What is B2B and why is it a good business model for entrepreneurs?

What is B2B and why is it a good business model for entrepreneurs?

This time we want to talk to you about B2B (Business to Business), which basically means that with this business model, what you do is sell a product or service to other companies.

What is the B2B business model?

When a company is focused on selling products or services to other companies, this business model is known as B2B or “Business-to-Business”. Unlike what happens with the business models “Business-to-Customer” or “Consumer-to-Business”, B2B facilitates the transfer of raw materials, components and parts, from which an additional benefit is derived, through the manufacture or sale to the final consumer.

Some of the most representative examples of B2B businesses, include for example, the sale of CRM software, to companies so that they can keep track of their customers, manage sales cycles, etc. The sale of office equipment for companies that want to update their existing furniture is also another B2B business, including the sale of security hardware and access control systems to universities or entities.

Why is B2B a good business model for entrepreneurs?

When selling a B2B product, the best way to differentiate yourself from the competition is to offer better support for the product, have a fast delivery capacity, as well as the ability to offer more affordable price options than other companies in the market. Many entrepreneurs cannot offer the above and will end up losing ground to large competitors.

When meeting a potential client, the entrepreneur can see the profitability in the sale of another solution in the company, at the same time that he is also able to offer a new product that can quickly be positioned as it is in high demand and quite expensive.

Service-based businesses are ideal for entrepreneurs because they can offer a wide range of ever-changing services. Not only that, unlike the average consumer, companies can spend a lot of money, in addition, the marketing of competitors is not that strong and of course the entrepreneur has complete flexibility in terms of prices.

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