When looking to buy a franchise, first, take a short test. Name the first five franchises that come to mind....
Your answers are all likely to be business-to-consumer (B2C) franchises. However, there is a whole other world of franchising out there.
Business-to-business (B2B) is one of the fastest growing sectors in franchising, offering services to businesses rather than individual consumers. These services could range from personnel placement to commercial window cleaning.
A business franchise could even include computer support, business coaching, printing, marketing services and branded apparel.
Many potential franchise owners have spent years advertising products and services to other companies or departments before leaving the corporate world.
And they are comfortable and skilled in this type of environment, enjoying professional business relationships and structuring solutions.
B2B franchises may be perfect for this type of franchise buyer as they require less physical infrastructure than B2C franchises.
They are also scalable, normally operating within the traditional 9-5 business hours. B2B franchises also use targeted marketing, a much cheaper alternative to mass marketing.
This type of franchise often has lower operating expenses and overheads than other types of
And a way to keep B2B franchise overheads particularly low relates to property rental fees. Most B2B franchises are located in office buildings, where retail space is less expensive, and for some, could even be home-based.
For example, an IT firm might actually be in association with a home-based, individual, high-level IT subcontractor who travels from their own home directly to the customer site.
However, the majority of B2B franchises do require retail space. For example, a staffing company must be easily accessible to potential employees and businesses like auto parts stores, who cater primarily to the vehicle repair industry could still be open to the public.
As well as numerous advantages, like any business opportunity, there are also disadvantages to owning a B2B franchise. Those without a solid business background may find it difficult to work effectively with busy and brisk business people.
B2B franchises tend to work with a smaller number of large customers, rather than lots of individual customers, meaning that the loss of one customer has a greater effect on your top line.
You will also need to be at the top of your game, as competition in the B2B arena can be tough.
So if you want to take the next step in franchise ownership and possess strong business experience, don’t overlook B2B. It could bring you happiness, financial gain and you may get your weekends off!