B2B – Business-to-Business – it’s a transaction or business conducted between one company and another versus a company and an individual consumer.
It can be one business investing in the services provided by another, or a business purchasing supplies to help run aid their day-to-day operations. Envision the supply chain. A beneficial B2B relationship can also be the result of a good networking relationship. Who knows where you could meet your next business partner.
Even if you are a small business, you’ll likely need to work with a B2B company at some point in your journey. There are B2B companies in every industry – manufacturing, retail, you name it. If your business accepts a particular credit card, you’re working with a B2B business.
Just how can a positive B2B relationship help you? Here are a few things to keep in mind:
- Support local. Every business needs to purchase products and services from other businesses to launch, operate and grow. Think of an auto dealer needing to purchase parts for assembly – the raw materials. Why not do it with another business person you know, trust and respect, or in an area that is near and dear to your heart?
- Deal size. A B2B company is able to grow sales with a small number of high-value deals by selling in bulk. Businesses can also save by purchasing in larger quantities, less often. Buyers are also able to enjoy wholesale prices.
- Ease of online. Many services and product orders can be completed online (via e-commerce), making doing business quick and convenient. There is often no need to make phone calls or visit physical locations. This also means that as a B2B business, having a thorough, yet easy-to-navigate website, is essential.
- Boosting the local economy. Because B2B business usually happens on a larger scale – a business purchasing parts from a large company’s warehouse, for example – is helping to support the area’s tax base and the employees at the facility, as well as their families.
- Purchase protection. Contracts are often a part of the B2B buying process, so there is some security in place for both buyer and seller.
Evaluate your business and where you’re conducting B2B work, or where it may benefit you to do so. It can be a huge convenience and an immense benefit.
Learn more about Pagoda Business Network online at pagodabusinessassociation.com and more about Smith Enterprises Consulting LLC at smithenterprisescorp.com. We’d love to welcome you to a meeting or to help with your business.
Nikki Murry is editor of Berks County Living magazine and a freelance writer, editor, proofreader and blogger. In her free time she is an active dog rescue volunteer and enjoys spending time with her 17-year-old son, Riley, and her three dogs: Figgy and Shelly, French Bulldogs, and Bruno, a Boston Terrier.