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Should You Consider B2B Franchise Opportunities?

Should You Consider B2B Franchise Opportunities?

By FranchiseKing, Guest Blogger
Published: February 21, 2018

Have you ever thought about starting a B2B franchise?

B2B, short for business-to-business, is a sector of franchising that’s a bit under the radar. That’s because these franchises are not as visible as food or retail franchises.

But their lack of visibility shouldn’t be a deterrent.

In this post, I’m going to introduce you to the world of B2B franchising, and show you why, for the right person, these franchises may be worth a look.


Example of a B2B Franchise

Sales-driven at their core, B2B franchises are the ones that make things happen. Here’s an example of what I mean.

All of us get mail. We receive bills, invitations, and of course, advertisements. And for the most part, most of the advertisements we get go into the garbage or recycling bin.

But there’s one type of advertisement that tends to get our attention, because it’s different than the others. It’s the envelope.

This envelope is stuffed with ads from local businesses offering products or services at a discount.

For example, you may find an advertisement from a local heating and air conditioning company offering a furnace check-up at a discounted price.

Another example might be an advertisement from a new workout place that just opened, offering “Grand Opening” specials. You get the idea. But, do you know who owns the company that send those envelopes out? Your neighbor.

That’s right — the Direct Mail company sending the ad-stuffed envelopes out is most likely a franchise business, and it’s usually owned by someone in your community.

The Role of a B2B Franchisee

In essence, a B2B franchise business is a sales business. And the role of the franchisee is one of business development..

Let’s get this out in the open.

If you’re in business development, you’re in sales. That’s right — you’re a salesperson. Let me show you what I mean.

A while back, I wrote about franchise businesses that deal with the impact of natural disasters, like hurricanes and tornadoes. Do you know how franchise owners of these businesses get their customers?

Franchisees of disaster clean-up and restoration companies call on local insurance agents, fire departments etc., to create referral relationships. That’s because referrals are what drives their businesses. And those referrals turn into customers.

How Much Are B2B Franchises?

One of the more attractive things B2B franchise opportunities bring to the table has to do with cost. B2B franchises have some of the lowest upfront investment requirements of any franchise business sector.

For instance, if you felt that a business coaching or business consulting franchise suited you, your upfront investment would be under $100,000, in most cases. However, if you later found out that franchises like those just mentioned were not suitable, and you ended up having to close your business down, that “low” investment probably wouldn’t feel so low.

One more thing. There are several B2B franchises that cost well over $100,000. Sign businesses are one example, and some of the retail businesses that require aggressive business development activities can cost $200,000-$300,000 or more.

Are You a Fit for B2B Franchises?

While a low-investment franchise business opportunity can be attractive, in order for it to be a successful franchise business, you need to have the right skillsets.  In the case of a B2B franchise, you’ll need to be:

  • Highly organized
  • A proven sales leader
  • Aggressive
  • Persevering
  • Energetic
  • Positive

In other words, if you’ve never made cold calls, or face-to-face sales presentations and the like, a B2B franchise won’t be a good fit.

But if you are a strong salesperson, with a can-do attitude, and you like to win, a franchise in the B2B space could end up being a wonderful fit.


About the Author:

Joel Libava

Guest Blogger

The Franchise King®, Joel Libava, is the author of Become a Franchise Owner! and recently launched Franchise Business University.