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Business to business vs. business to consumer franchises

Written on the 8 April 2013

Like most businesses, a franchise usually falls into one of two camps: business to business (B2B) or business to consumer (B2C). If you're considering a franchising opportunity, it's well worth analysing each market to see how they align with your skills and interests.

Business to business (B2B)

This type of franchise involves selling products or services to other businesses. Persistence, optimism and an ability to build relationships are central to success. Here's what you'll love about B2B:

Working hours

Most B2B franchises have operating hours that mirror their clients' hours. This usually means a standard five-day, nine-to-five week a big lifestyle benefit for business owners who want to preserve a work-life balance (and their weekends and evenings).

Demand

Once a business finds a reliable supplier, they usually stick with them. Therefore most of your custom will generally be repeat business. Business clients tend to be better funded, with larger budgets (than individual consumers) supporting their purchasing decisions.

Marketing costs

Marketing to businesses is far more targeted than marketing to the general public, this means that B2B franchises can focus their marketing efforts and spend.

Client relations

You're dealing with professionals who are representing their own brand, so most will conduct themselves professionally. The general public, on the other hand, can be a far more unpredictable and varied service experience.

Business to consumer (B2C)

This business model involves selling directly to individuals or consumers. You'll need patience and a flair for working with all types of people from the general public. Here's what you'll love about B2C:

Low diversification risk

You have a large, diverse client pool, so if your product or service doesn't appeal to one customer there are potentially many more customers to replace them.   

Customer base

B2C franchises don't have to contend with the whims of big business. Instead they sell to individual customers who make their own purchasing decisions and are more likely to spontaneously try a new product.

A vast market

The B2C market is vast. Target a niche market, or alternatively appeal to a broad consumer base the choice is yours.

Simple needs

Consumer sales tend to be fairly straightforward as you are dealing with one person's purchase requirements, rather than the varied needs of a business.

Interested in owning a B2B franchise with true growth potential? Contact Snap to discuss our unique franchising opportunities.

 


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