I had a fascinating conversation with a founder this morning, who revealed that around 70% of their sales were to consumers, with the remaining 30% to businesses. In the context of a pitch, they were unsure of how to present the story of their B2B sales.
Key Takeaway
Whether you’re a B2B or a B2C startup, the focus should not be on who’s buying your product, but on how you are selling it.
The Misconception of B2B and B2C
Commonly, founders base their business model solely on their target customers, categorizing themselves as B2B if they sell to businesses and B2C if they cater to consumers. However, this oversimplification overlooks a crucial aspect.
Understanding the True Difference
B2B and B2C are not just categories of audiences; they represent distinct sales and marketing strategies that govern a startup’s approach towards audience engagement, relationship management, and revenue generation.
The conversation around B2B (business-to-business) and B2C (business-to-consumer) sales often revolves around the target customer. However, the crucial difference lies in the sales strategies employed, rather than the identity of the buyer. Understanding this distinction is vital for shaping the operational structure, marketing approach, and revenue channels of a startup.
