When we think of an entrepreneur starting a business we often think of a company that sells a product or service to consumers. Well, as you probably know, selling to consumers isn’t the only market. Business to Business (B2B) is another way to approach starting an internet business that has equal possibilities of success as Business to Consumer (B2C) does. However, which one is easier? And is either one superior to the other? Well, let’s discuss the disadvantages and advantages to each method, and then you can decide for yourself!

• Business – Consumer: Perhaps the most common idea of an internet business, B2C focuses on generating profit by reaching consumers with a product/service they desire.
  • Advantages –
    • Potentially more prospects
    • Consumer loyalty = life long customers
    • More fulfilling (See your product/service change people’s lives)
    • Can be more personal with your customer (Kind of goes hand and hind with fulfillment)
  • Disadvantages –
    • Sometimes difficult to reach your consumers
    • Consumer preferences often change
    • Competing with brand perceptions in consumer’s minds that you cannot identify
    • Cost of educating consumers on your product/service

• Business – Business: Less commonly associated with internet businesses. Focuses on selling products/services to other businesses that desire them.
  • Advantages –
    • Already know your target
    • Less difficult to get in front of your customer’s “eyes”
    • Make decisions less on personal preference and more on efficiency.
    • Less resistant to change than consumers.
  • Disadvantages –
    • Possibly less fulfilling
    • Smaller market (could be an advantage as a startup)
    • Sales are a longer process

As you can see, there are disadvantages and advantages to both, and the list goes beyond what I’ve provided here. The important thing to realize is that both of these routs are viable options to apply to an internet business model. The internet has made it easier than ever to start a business, and either of these fields can be entered in a very cost effective way. No matter which you choose, B2B or B2C, focus on knowing your customer, and driving value. If you can do that, you will be a successful internet entrepreneur.