How To Build A B2B Business From Scratch

Late in 2018, Forrester said that the B2B e-commerce market topped $1.134 trillion—above the $954 billion it had projected for 2018 in a forecast released in 2017. That's roughly 12% of the total $9 trillion in total US B2B sales for the year.

This is to indicate that the B2B businesses and industries are here to stay in the commerce world.

Also, by 2027, global B2B e-commerce is forecast to reach $20.9 trillion, representing a CAGR (compound annual growth rate) of 17.5% during the forecast period (2020-2027), according to Grand View Research.

There are different models of business used for transactions; B2B, B2C, B2G, C2C. All of these models have their unique mode of serving their audiences.

In this article, the area of concentration is Business-to-Business (B2B).

We'll explore what B2B is, its types, the services it renders, and most importantly, how to build it from scratch.

What is Business-to-Business?

Business-to-Business (B2B), is a type of e-commerce that occurs between two companies.

Different from the general mode of transaction that's always between businesses and customers, it's only between businesses.

However, there are a few B2B companies that sell to both businesses and customers.

Who then are the customers of B2B if consumers of the services/products are not in the picture?

The fact that there's no direct chain between companies and individual customers doesn't make B2B less of a business. It's just different from B2C in the sense that:

• There are larger orders.
• It handles a larger scale of audience; it deals with other companies.
• It's a bit more complicated as it involves a lot of sales cycles.

To further break it down, B2B can be seen as a form of transaction between the manufacturer of a particular product to the supplier.

Examples of Business-to-Business

Now that B2B has been delved into, let's explore the examples of Business-to-Business (B2B) in this section.

1. Manufacturer-Distributor:

This type of B2B as its name implies is the transaction between a manufacturer and a distributor in which products from the manufacturer are bought by the distributor who can then finally sell to the end user, the consumers.

2. Manufacturer-Retailer:

Here, the products that have been manufactured are directly sold to the retailer. It is then the retailer that will get the products to the final consumer(s).

3. Manufacturer-Wholesaler:

This type of B2B relationship occurs when a manufacturer sells its products directly to a wholesaler.

This time not to the distributor or retailer. It's this wholesaler that further supplies or resells to either the retailer or the end consumer.

4. Service Provider-Client:

This type of B2B relationship involves providing services such as marketing, consulting, logistics, and financial services to businesses.

It doesn't require transactions from manufacturer to distributor or manufacturer to retailer, it encompasses all the provision of services as listed above that other businesses need for the smooth running of their business.

There are exceptional cases, where a company will run on a B2B scale and also B2B.

Companies under B2B and the Services they Render

For the efficient operation and growth of other businesses, they must purchase products or consult services from other companies as well.

Industries where B2B operates are not limited to this list as it does not contain all.

There are the Financial Industries, Manufacturing, Real Estate, Food and Beverage, Telecommunication, Retail, Healthcare, etc.

Let's check through a few of the B2B companies and the services they render to other businesses.

1. Amazon:

亚马逊 services range from advertising, pharmacy, and music, to web services, etc.

2. Alibaba:

阿里巴巴集团 is a company that renders manufacturing, supplying, exporting, and importing services to other businesses or companies.

3. Quill:

It is a Chinese multinational tech company that was founded in 1956. It sells products such as tech, cleaning, and breakdown supplies to other businesses.

It has over 500 employees and 12 distribution centers.

4. AutoGlobalTrade:

It is also a multinational B2B automobile trading company that operates on a global scale with 51-200 employees.

Automobile-producing companies purchase their parts to make up a car.

Tires, batteries and, electronic hoses are parts that can be bought from other companies before a car can be manufactured.

5. BopDesign:

A marketing agency that helps other businesses build, and generate leads and sales is also a B2B company.

Founded by Kara Jensen, its transaction is always between other businesses.

Building of Business-to-Business from Scratch

Let's explore ways in which you can build B2B from scratch as a business owner.

Define your Target Audience:

Identify your niche first via market research to be able to identify the pain points of our target industries and how your services and products can be of great value to them.

Develop your Product or Service:

After you have been able to identify your audience and also their pain points, you can proceed to develop products or services that proffer solutions to these pain points based on the research.

Create a Business Plan:

Having a blueprint before the start of anything makes work easier.

This blueprint (proper planning) is what will serve as a map to knowing if you're moving forward or recording a loss.

This is where the strategies you'll infuse into your business come in, things you'll do to be above the grip of your competitors.

Build your Brand:

Building a brand identity is very important for a professional B2B industry.

To achieve this, create a strong brand identity that has your business name, logo, and brand message.

Also, it's very important that your brand can reflect your company’s values and resonate with your target market.

Sales and Marketing Strategy:

B2B helps businesses reach a wider audience. However, this can only be made possible if there's strategic marketing.

You can leverage good websites, and social media to be able to connect with these Industries you want to market your brand to.

Launch your Business:

After you have identified your niche, and your target audience, and built your brand, you can then proceed to launch your B2B business.

You can transact with small-sized companies or Industries to be able to get used to the large-scale Industries.

Conclusion

Building a B2B business from scratch can be a daunting task to accomplish.

However, going about it with the right mindset, proper planning, and resources, it's going to be worth every bit of hard work in the end.

Thank you for reading!

For more details, visit Precious Crafts Ltd or www.pcwritings.com