Home Library Translate
A A A
Share »
Follow us on Facebook Follow us on Twitter Follow us on LinkedIn
Connect »

Blog: Business Planning

Menu

  • This Blog's Home
  • Guest Writer Submissions
  • Policies
  • To Subscribe to a Blog
  • About
  • Feedback

Plans for Business-to-Business Ventures

By Rolfe Larson on February 23, 2011

While many entrepreneurs tend to think first of selling products or services to consumers, far larger markets exist in selling to other companies.  Those sales, known as business to business, or B2B, roughly account for ten times the sales directly to consumers.  So if you are undecided about what kind of business to launch, and are looking for larger, more consistent markets for selling your products, consider business to business.

What’s different about business planning for B2B ventures?  First, since your customers are companies (specifically, purchasing agents at companies), quality and price are typically the driving features, rather than things like perception or brand recognition. So your business plan needs to specific precisely what the product or manufacturing standards are that your customers will demand.  For that, they are not flexible.  Secondly, while the typical business to consumer venture has (or seeks) many customers, the B2B venture often secures larger orders from a smaller number of customers.  The result is a very different sales effort.

Finally, B2B ventures often face very different purchasing strategies, which can have a huge impact on cash flow management. Vendors are often required to in effect provide financing to their customers, through payment terms that can stretch the vendor’s ability to meet its cash flow requirements.  Generally speaking, in B2B, the terms (and sometimes pricing) are dictated by the customer or the market place, and so the vendor has to take what’s available.

That’s all the more reason to do thorough market research during your business planning process so you won’t get surprised when you enter the marketplace.  Good luck!

– – – – – –

For more resources, see our Library topic Business Planning.

  • Copyright © 2011 Rolfe Larson Associates – 15th Anniversary!
  • Author Venture Forth! Endorsed by Paul Newman of Newman’s Own
  • Read my weekly blogs on Social Enterprise and Business Planning
« Previous Next »

Search Our Site

Meet the Blog’s Host

Rolfe Larson provides consulting and training in areas such as strategic planning, market research, feasibility analysis, business planning, marketing, and implementation strategies.
[Read more ...]

Recent Blog Posts

  • Avoid the Silicon Valley Syndrome!
  • Execution Trumps Strategy
  • Is Balance Possible?
  • B Corp As A Competitive Edge?
  • Women Entrepreneurs Bring Unique Strengths
  • Business Plans vs. Strategic Plans
  • Mindfulness as a Competitive Strategy
  • Caves and Campfires…
  • Crowd Financing Debuted Last Week (sort of)
  • Intrapreneurial Business Plans

Categories of Posts

  • Basics and Overviews
  • Competitive Advantage
  • Entrepreneur
  • Feasibility Analysis
  • Financing
  • Finding Funders, Investors
  • General Resources
  • intrapreneur
  • Market Research
  • Pricing strategies
  • Uncategorized
  • Video Business Plan
  • Writing the plan

Related Library Topics

  • Advertising
  • Business Planning
  • Business Research
  • Creativity and Innovation
  • Decision Making
  • Finances (For-Profit)
  • Finances (Nonprofit)
  • Fundraising (For-Profit)
  • Fundraising (Nonprofit)
  • Loans (Getting)
  • Management
  • Marketing
  • Planning (General)
  • Product Management
  • Program Planning
  • Project Management
  • Quality Management
  • Social Enterprise
  • Starting For-Profit
  • Starting Nonprofit
  • Strategic Planning

Library's Blogs

  • Boards of Directors
  • Building a Business
  • Business Communications
  • Business Ethics, Culture and Performance
  • Business Planning
  • Career Management
  • Coaching and Action Learning
  • Consulting and Organizational Development
  • Crisis Management
  • Customer Service
  • Facilitation
  • Free Management Library Blogs
  • Fundraising for Nonprofits
  • Human Resources
  • Leadership
  • Marketing and Social Media
  • Nonprofit Capacity Building
  • Project Management
  • Quality Management
  • Social Enterprise
  • Spirituality
  • Strategic Planning
  • Supervision
  • Team Building and Performance
  • Training and Development
About Feedback Legal Privacy Policy Contact Us
Free Management Library, © Copyright Authenticity Consulting, LLC ®; All rights reserved.
  • Graphics by Wylde Hare LLC
  • Website maintained by Caitlin Cahill

By continuing to use this site, you agree to our Privacy Policy.X