The business services industry continues to grow and maintain high demand. Creative Colors International explores the 2023 outlook for companies providing B2B services.
What is B2B?
Business-to-business, or B2B, companies provide goods and services to other businesses. They offer a solid investment featuring a large customer base with high earnings potential for entrepreneurs. Most B2B companies establish long-term relationships with their customers and have contracts in place to help drive repeat business. B2B franchises typically generate specific leads, which promotes higher conversion rates. Many B2B franchises do not rely on foot traffic to drive sales, reducing the need for prime real estate, and they often cut operating costs further by providing mobile service or operating out of a home office.
The outlook for the business services industry is positive. There are 420,000 business services locations in the U.S., and they earn approximately $950 billion, according to Dun & Bradstreet. Business services franchises were forecast to earn $99.8 billion in 2022 and employ 604,362 people at nearly 101,000 locations, reports the International Franchise Association.
Reverberations from the pandemic outbreak are still having an impact on the business services market. Remote working changed the playing field for business services franchises. Franchises offering information technology services thrive by helping foster a seamless transition between the home and office for hybrid workers.
Co-working franchisees reap the rewards of remote working trends as customers seek locations to conduct business outside of a traditional office. In 2015 there were only 331,000 people working in co-working spaces in the U.S. The number of people commuting to co-working spaces climbed to 1.1 million in 2022, according to Statista.
Businesses that provide office supply services and cleaning struggled initially when offices were closed and companies cut costs. The rollout of the vaccine and lifting of mask mandates helped these business services franchises rebuild as office buildings reopened across the country. The popularity of online shopping and delivery enables entrepreneurs focused on mailing, packing, and shipping services to continue to perform well.
A generational shift created high demand for some business services franchises. Millennials overtook baby boomers as the largest generation in 2020, and many people from the aging boomer demographic are exiting the workforce. Approximately 41% of small businesses are still owned by baby boomers, and business services account for one of the largest shares of these businesses, at 13%, reports Guidant Financial. As they reach retirement age and need to divest their businesses, demand for brokerage service franchises continues to grow.
During the Great Resignation in 2021, nearly 47.8 million Americans quit their jobs, and companies struggled to find workers to fill empty roles. The ongoing shockwaves from the labor crunch raised the demand for personnel franchises, according to the International Franchise Association.
Top Business Services Trends
Successful business services franchises leverage technology to improve customer service. Here are some trends we expect to see grow over the next year.
Real-time customer service. Business service franchises need to offer a combination of in-person sales and digital tools to provide real-time customer service solutions. Many companies implement click-to-chat support programs to help bridge the gap. B2B providers need to use a variety of tools to connect with businesses, including phone, email, mobile apps, and e-procurement portals.
Subscription services. Customers rely on subscription services for everything from milk delivery to monthly pet food shipments to save time and make running errands easier. B2B companies can capitalize on the subscription trend by rolling out subscription packages to commercial clients.
Sustainable solutions. To reduce their carbon footprint and appeal to younger consumers who focus on sustainability when making purchasing decisions, B2B companies need to adopt environmentally friendly and sustainable practices.
Feedback. Consumers depend on online reviews to make purchasing decisions. At least 54% of people read online reviews before making a purchase, according to a poll of 1,250 adults by Digital. Soliciting feedback from clients can help improve customer service and guide business decisions.
CCI: A B2B Franchise Leader
Economic uncertainty is prompting many businesses to search for ways to cut costs in the new year. Repair and restoration franchises are in demand as companies trim budgets. Creative Colors International, a leading leather and vinyl repair franchise, is poised for expansion in 2023. CCI helps save its commercial customers up to 90% of replacement costs by repairing and restoring damage and has more than 150 vans across the U.S. The company recently opened its first location off the mainland, in Hawaii.
Our service technicians fix rips, tears, burns, scratches, and fading in leather and vinyl. CCI service technicians repair car interiors, airplane seats, and boats. We eliminate wear and tear for a wide variety of small businesses, including restaurants, medical offices, dental practices, and beauty salons. In addition to a robust B2B business, we offer multiple revenue streams by providing B2C services to residential customers.
For a low initial investment of $86,980 to $102,410, including a $49,500 franchise fee, our franchise owners receive the keys to a mobile van with the tools they need to serve customers. They can set their own schedules and work at their own pace while conducting back-office operations from a home office. We provide training and ongoing support to help ensure our franchise owners provide unparalleled service to their customers. To help support our franchise owners as they continue growing their customer base, CCI has marketing materials, and our business development managers help owners implement growth-building marketing strategies.
CCI uses environmentally friendly cleaning products and dyes to cater to customers who want sustainable options. By implementing a quality-controlled manufacturing process, we ensure all our products are non-toxic and biodegradable.
Explore Partnering with CCI
If you’re looking for a company with a strong reputation in the business services industry, contact CCI to request franchise info and learn how partnering with a restoration franchise offering both commercial and residential services can help you pursue entrepreneurship.