When I work with people who are considering buying a franchise, I sometimes ask them to list the first five franchises that come to mind. Generally 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 offer services to businesses, instead of to individual consumers, are one of the fastest growing 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 perfect fit. Many people who leave the corporate world to purchase their own franchise have spent years promoting their products and services to other companies or to other departments inside their own company. They are at ease 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 expensive to get into than other types of franchises and may need lower operating cost. In a lot of 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 low is the amount a B2B franchise pays for rent. While retail space may be expensive, most B2B franchises are located in office buildings, where space is less expensive. Some B2B franchises are even home based. For example, an IT firm might actually be an association of high-level IT subcontractors, who travel from their own homes directly 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 see, there are tangible advantages to owning a B2B franchise. But there can also be disadvantages. If you do not have a strong business background you may have trouble working effectively with business people, who tend to be busy and to-the-point. B2B franchises tend to work with a smaller number of large customers, rather than many individual customers. The loss of one client could cause a large dent in your top line. And because competition in the B2B arena tends to be proficient, 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 offer services to businesses, instead of to individual consumers, are one of the fastest growing 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 perfect fit. Many people who leave the corporate world to purchase their own franchise have spent years promoting their products and services to other companies or to other departments inside their own company. They are at ease 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 expensive to get into than other types of franchises and may need lower operating cost. In a lot of 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 low is the amount a B2B franchise pays for rent. While retail space may be expensive, most B2B franchises are located in office buildings, where space is less expensive. Some B2B franchises are even home based. For example, an IT firm might actually be an association of high-level IT subcontractors, who travel from their own homes directly 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 see, there are tangible advantages to owning a B2B franchise. But there can also be disadvantages. If you do not have a strong business background you may have trouble working effectively with business people, who tend to be busy and to-the-point. B2B franchises tend to work with a smaller number of large customers, rather than many individual customers. The loss of one client could cause a large dent in your top line. And because competition in the B2B arena tends to be proficient, 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 written by Rick Bisio, author of The Educated Franchisee. Rick is known as as one of the premier franchise consultants in the country who has trained thousands of individuals on making the right decisions about franchise ownership. Visit the Educated Franchiseefor a free newsletter and more information.
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