B2B Entrepreneurship 101

Business-to-business transactions involve companies purchasing goods and services from one another – this could include office supplies, clothing, car parts, food or even software.

Construction companies often need to purchase materials from lumber yards, window companies and concrete manufacturers – this type of commerce is known as business-to-business (B2B).

In this form of entrepreneurship, logic plays an essential part. An entrepreneur may focus on cost savings and revenue potential when making business decisions.


Buyers are the individuals responsible for procuring products and services for use within their organization. Buyers must understand their company’s needs in order to identify appropriate solutions; additionally they should evaluate different vendors to select the optimal option.

Dependent upon their field of endeavor, buyers may require certain educational backgrounds for success in buying roles. For instance, those working in manufacturing might require a bachelor’s degree in supply chain management, although many buyers develop experience through entry-level roles and advance their careers without necessarily needing four year degrees.

Selling to potential buyers involves showing how your product or solution will impact their company’s bottom line. Provide datasheets, ROI calculators, and case studies as proof of how your solution will help them meet their business goals.


Suppliers are businesses that supply raw materials and essential business supplies for use by other businesses; these suppliers then resell these goods or services directly to consumers through retailers and wholesalers. Some examples of suppliers are manufacturers, wholesalers and dropshippers.

Finding a supplier with whom you can work effectively is vital for new businesses, yet finding one may be challenging. Many suppliers impose minimum order quantities (MOQs) which may be challenging for small startups to fulfill.

When selecting a supplier, it’s essential that they offer competitive prices, reliable service and great communication skills. A checklist can help evaluate potential candidates. A top supplier should abide by local laws and provide equal transactions across retailers – additionally they should offer you with a valid tax identification number.


Distributors act as intermediaries in the supply chain by purchasing products from manufacturers and selling them directly to retailers or end consumers. A distributor may carry multiple brands of an item under its own name as well as using that of its manufacturer for labelling purposes.

B2B businesses specialize in purchasing and selling goods and services used by other businesses for business-related activities, such as office supplies, food service and productivity software. Examples of such businesses are Dropbox Business (cloud document sharing), Xerox (printers and related hardware) and Salesforce (customer relationship management).

Manufacturers that work with distributors can take advantage of the distribution network’s ability to manage sales and marketing. Manufacturers should view distributors as extensions of their own sales organization and build open relationships. Distributors may even provide benefits directly to users such as bundling products together.


B2B businesses specialize in products or services designed for other companies and use complex B2B technology. This type of company can be found across various industries, from producing materials or clothes, to car parts. Nonprofit organizations and educational institutions often utilize them. Some examples of B2B firms include Picky Bars – made by professional athletes to supply nutrition bars; as well as FBI who purchase office supplies from various vendors.

Retailers purchase goods from wholesalers or distributors and sell them at higher prices to consumers at retail. Retailers employ various marketing strategies such as advertising, sales promotions and both online and offline marketing strategies in order to reach out to potential consumers, including advertising, sales promotions and direct mailing campaigns. Retailers specialize in inventory management, market research and customer service as well as offering delivery/shipping options for products they offer their consumers.