There’s been a great deal of exposure and excitement about Web 2.0 companies, many of which are business-to-consumer (B2C) ventures. In fact, the majority of applicants to Shotput Ventures are B2C web companies. As for me, I’m focused on business-to-business (B2B) web companies. Here’s why I prefer B2B companies over B2C companies:
- B2B companies typically sell a higher priced product or service, requiring fewer transactions to build a nice business
- Business products and services are purchased to help make more money or to help save money, making it easy to highlight the requisite features and benefits
- Business sales and marketing processes are well established making it easier to control your own destiny by building things companies need and finding buyers
Now, you can’t argue with B2C fads like Beanie Babies, where Ty Warner, the owner of Ty Inc, personally made almost $1 billion in one year off the stuffed animals, but I’d rather focus on things I can control, and consumers aren’t one of them. B2B startups are for me.
What else? Do you like B2B or B2C businesses more?