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B2B vs B2C: Which is Harder?

B2B vs B2C: Which is Harder?

If you’re an aspiring entrepreneur, then one of the things you’ve probably given some thought to is whether you want to deal with other businesses (B2B), or the end consumer of a product or service (B2C). In truth, neither is clearly better than the other, and things change on a case by case basis. We can however look at a few points which will give you an idea of the different working styles, and which might be better for you.


Being a B2B company is all about delivery. The key thing to remember is that when you’re providing another business with something, they’re relying on it as part of their strategy. The other business will have deadlines and expectations to meet, and your own delivery will impact upon that. This does naturally mean that there can be added expectations and pressures on you. If you’re simply delivering something to a single end customer, mistakes aren’t likely to cost you much. In the world of business however, depending on contracts and more, errors and delays can land you in court or even worse. Every transaction you make is likely to count, and this becomes even more critical the fewer you’re making, and the higher their value. As an example, when it comes to deliver something, you’re going to want to choose a provider that offers guaranteed delivery like TNT, rather than a budget and less reliable courier.


On the flip side of course, dealing with other businesses means dealing with fewer customers. Even if you’re a supplier, and you deal with many different companies, you won’t have as many customers as you would if you were a B2C company. Whether online or bricks and mortar, you’ll have to be giving good service constantly to members of the general public. This is good for those who like a constant stream of orders coming in, where deadlines and delivery expectations aren’t quite as high.

In short, it all comes down to the fact that B2C means a higher volume of transactions with a lower average transaction value, where B2B means the reverse. As to which style of business you prefer, only you can decide. It’s worth knowing what you’re getting into in advance first though, because there are differences from the outset. Marketing for instance, which is essential in the setting up of your company, is quite different.

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