The B2B Business Model, Explained: How Businesses Profit from Each Other

May 2, 2022

Building relationships and providing cutting-edge support to business owners with a B2B business model gives Creative Colors International the franchise advantage.

The franchise industry offers the choice of a wide variety of business models. From brick-and-mortar retail stores to low-inventory options operated from a home office, the choices are numerous. The number of franchises in the United States is on target to reach 792,014, up 2.2% from the prior year, the International Franchise Association reported. Franchises contribute 3% to the gross domestic product in the United States and employ 8.4 million people.

The business-to-business, or B2B, franchise model provides goods or services to area businesses. On the other hand, business-to-consumer, or B2C franchises, provide a service to the end-user. As a B2B business owner, customer service is key to your success. Building relationships helps ensure your business generates recurring revenue. B2B customers have carefully defined budgets and goals, which can limit some of the guesswork business owners face when dealing with the general public.

CCI is an industry leader in leather and vinyl repair. Our technicians restore products to like-new condition by eliminating rips, tears, burns, scratching, and fading. As a B2B franchise, we specialize in providing service to a wide variety of industries, including automotive, commercial, marine, and aviation. CCI operates or franchises 132 mobile repair shops across the country.

Pros of B2B Business Model

Low Upfront Cost. Many B2C franchise models require eye-catching signage and prime real estate to generate profits. A B2B franchise can provide a low barrier to entry that is attainable. It costs between $86,980 to $102,410 to become a CCI business owner versus the $1 million price tag of certain B2C businesses. Franchise owners have the option of purchasing a single territory or upgrading to multiple territories. CCI is a mobile business model. Our vans have all the tools you need to get the job done. Most of our franchise owners take care of back-office details from a home office.

Customer Loyalty. B2B franchisees can form long-lasting relationships with their customer base. Having the security of consistent customers helps limit the risk of your business venture and may allow you to reach profitability quickly. CCI has national accounts with recognized brands, which gives its franchisees a safety net as they get their business up and running.

Accurate Financial Projections. One of the advantages of operating a B2B franchise is the ability to make accurate financial projections. Having a loyal customer base and service contracts with area businesses creates stability and helps rule out some of the uncertainty of business ownership.

Flexibility. Many potential entrepreneurs are searching for a way to escape the 9 to 5 grind and have more time to spend on the home front. Owning a B2B business provides unlimited earnings potential and allows you to make your own schedule. Having a home office also helps cut costs and can improve work-life balance.

Cons of B2B Model.
While the pros outweigh the cons when it comes to the B2B model, there are some pitfalls to consider. There may be a limited market, and it may take longer to secure sales. Businesses often require a long paper trail, and your customer may have to get approval from a variety of stakeholders before you can close the deal.

In addition to a robust B2B business, CCI franchise owners can implement a direct-to-consumer business model by providing residential services. Having multiple revenue streams helps franchise owners generate profits if one business experiences a downturn. Our technicians frequently fix leather furniture, saving customers up to 90% in replacement costs.

How to Pick the Right B2B Opportunity.
Finding a B2B franchise that ticks all the boxes can be a challenge. To help make the right choice, it's vital for franchise prospects to take time to chat with other business owners in the system to learn about their experience with the brand you are considering.

To help streamline the decision-making process, CCI offers in-person discovery days to answer questions and address concerns as you pursue entrepreneurship.

Connect With CCI
If you are ready to learn more about B2B opportunities in the franchise industry, click here to request franchise information and connect with one of CCI’s franchise business consultants.