In simple words, B2B stands for Business-to-Business. This business model deals with buying and selling of products and services among the companies or businesses deal with businesses only. You can relate it to a scenario where a well-established company provides its services to its younger business or a brand new company. It helps the new company become successful in less time.
Do you own a company that offers office-related products such as tables, chairs, or computers; you can consider your business as a B2B Company. Businesses selling their goods or services to businesses only and not retailers or consumers.
Now, let’s dive into further detail to help you get a clear image of B2B. In the B2B business model, a company develops stronger relationships with customers to gain their trust. The concept of B2B companies is a common trend in this modern age. You can sell almost everything to other companies to help them boost their sales. For example, you can think of Dropbox, Xerox, and WeWork as the companies that work on the B2B model.
Furthermore, internet companies selling their services i.e. TV, internet, and/or digital phone to businesses is just another instance. If you are looking for internet services that are not B2B but one of the best in the US market including CenturyLink offers both business and residential services.
B2B companies focus on their targeted customers to develop loyal relationships with them. It is the supreme priority of every company if it wants to improve its performance continuously. But do you know who the customers of a B2B company are?
Targeted Audience is Customers of B2B Companies
You have to recognize here that the B2B business model is different from B2C. In B2C which stands for Business to Customer, companies focus on selling their products to their customers who are looking for such products. These customers are easier to find than the business customers of B2B companies. Every business has to determine its size and buying center for locating its targeted audience.
In B2C, a customer will directly buy the product if he/she finds it useful such as Amazon or anything you shopped online for your house. But then again in the case of B2B, the companies have to implement unique strategies purposefully to locate the business companies to whom they can sell their products or services. While going through the decision-making and strategy process, you have to understand the needs and requirements of other businesses. Thus, make sure the marketing plans you make are concise and engaging. It was a short but to-the-point concept of B2B companies and how they work.
Now, how can you start your B2B Company?
You have to understand the marketing concepts and study various already existing business models that these companies implement. Also, the selection of products and services plays a critical role in making any business a B2B business model. Pick 2-5 B2B businesses that are successful and are in the industry for at least 5 years. Read their evolution and who they deal with. After this study, you have to check out the strategies of successful B2B companies, and you are ready to start your B2B Company!
What is the idea behind the B2B model?
As the name B2B suggests, business-to-business services and products are different than what we see on the market or something available for all. As mentioned, the B2B businesses could be laptops or computers, furniture designed for workplaces, wholesale or in bulk clothing stuff, food for restaurants only, books for schools only, and various other similar examples.
In the aforementioned discussion, we have shared with you some examples to help you understand the B2B business model along with the definition. The only difference between B2C and B2B is B2C deals with consumers and the retail market directly while B2B deals with other businesses in the industry and it doesn’t have to be the same industry. The size of business in either scenario doesn’t matter, however, at times, B2B deals in bulk or a huge amount of orders instead of just one. That is not mandatory neither is qualification criteria but a common trend seen in both businesses that is one of differentiating factor.