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When I speak with people who are considering buying a franchise, I sometimes ask them to list the first five franchises that come to mind. Typically all five are business-to-consumer (B2C) franchises such as restaurant or mailbox type franchises.
The aim of this article is to let you know that theres another whole world out there! Business-to-business (B2B) franchises, which supply services to businesses, instead of to individual consumers, are one of the fastest flourishing sectors in franchising. Products and services range from temporary personnel placement to commercial window cleaning. They include sign companies, computer support, business coaching, printing, marketing services, logo apparel and on and on.
For a lot of potential franchise owners a B2B franchise may be the ideal fit. Many people who leave behind the corporate world to buy their own franchise have spent years advertising their products and services to other companies or to other departments within their own company. They are comfortable and skilled in this type of environment. They enjoy professional business relationships. They are good at structuring solutions.
B2B franchises often need less physical infrastructure than B2C franchises. They are generally scalable and many B2B owners appreciate that the business is generally open Monday through Friday, during traditional business hours.
A B2B franchise might be less pricy to get into than other types of franchises and may have lower operating expenses. In many instances, overhead is lower and marketing is more targeted, which is typically less expensive than marketing to the masses.
One item that can keep overhead down is the amount a B2B franchise pays for rent. While retail space can be pricey, most B2B franchises are located in office buildings, where space is less expensive. Some B2B franchises are even home based. For example, an IT company may actually be an association of high-level IT subcontractors, who travel from their own homes straight to the customers site.
Some B2B franchises do require retail space. For example, a staffing firm that needs to be accessible to numerous potential employees might be located in a retail location; an auto parts store that supplies principally to auto repair businesses could also be open to the public.
As you can realize, there are evident advantages to owning a B2B franchise. But there can also be disadvantages. If you do not have a solid business background you may have some issues working effectively with business people, who tend to be busy and to-the-point. B2B franchises tend to work with a smaller number of big customers, instead of many individual customers. The loss of one customer can make a large dent in your top line. And since competition in the B2B arena tends to be sophisticated, you have to be at the top of your game.
But if you own a strong business experience and are one the scores of people desiring to take the next step in franchise ownership, dont overlook B2B! It could bring you enjoyment, monetary rewards, and some weekends off!
The aim of this article is to let you know that theres another whole world out there! Business-to-business (B2B) franchises, which supply services to businesses, instead of to individual consumers, are one of the fastest flourishing sectors in franchising. Products and services range from temporary personnel placement to commercial window cleaning. They include sign companies, computer support, business coaching, printing, marketing services, logo apparel and on and on.
For a lot of potential franchise owners a B2B franchise may be the ideal fit. Many people who leave behind the corporate world to buy their own franchise have spent years advertising their products and services to other companies or to other departments within their own company. They are comfortable and skilled in this type of environment. They enjoy professional business relationships. They are good at structuring solutions.
B2B franchises often need less physical infrastructure than B2C franchises. They are generally scalable and many B2B owners appreciate that the business is generally open Monday through Friday, during traditional business hours.
A B2B franchise might be less pricy to get into than other types of franchises and may have lower operating expenses. In many instances, overhead is lower and marketing is more targeted, which is typically less expensive than marketing to the masses.
One item that can keep overhead down is the amount a B2B franchise pays for rent. While retail space can be pricey, most B2B franchises are located in office buildings, where space is less expensive. Some B2B franchises are even home based. For example, an IT company may actually be an association of high-level IT subcontractors, who travel from their own homes straight to the customers site.
Some B2B franchises do require retail space. For example, a staffing firm that needs to be accessible to numerous potential employees might be located in a retail location; an auto parts store that supplies principally to auto repair businesses could also be open to the public.
As you can realize, there are evident advantages to owning a B2B franchise. But there can also be disadvantages. If you do not have a solid business background you may have some issues working effectively with business people, who tend to be busy and to-the-point. B2B franchises tend to work with a smaller number of big customers, instead of many individual customers. The loss of one customer can make a large dent in your top line. And since competition in the B2B arena tends to be sophisticated, you have to be at the top of your game.
But if you own a strong business experience and are one the scores of people desiring to take the next step in franchise ownership, dont overlook B2B! It could bring you enjoyment, monetary rewards, and some weekends off!
About the Author:
This article was provided by Rick Bisio, who wrote the book, The Educated Franchisee. Rick has been recognized as one of the most respected franchise consultants in the country and has mentored thousands of entrepreneurs on making the right decisions about franchise ownership. Visit the Educated Franchiseefor a free newsletter and more information.
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