111. B2C vs B2B start-ups

The biggest difference between business to business and consumer facing ventures is how they grow. The growth curve and costs of B2B vs B2C growth is what surprises (and sinks) many start-ups.

Learning notes from this episode:

  • Business to consumer start-ups growth through paid marketing. If you launch a consumer app on the Apple App Store, expect to pay around 40% of the money you raise on Facebook advertising.
  • Business to business start-ups grow through sales. Sales is much more dependent on relationships and human interaction, than digital marketing. 
  • In the early stages of a B2B start-up's life, the founder is usually the one doing sales outreach.
  • Both approaches have serious costs. Do not make the mistakes that because marketing requires money and sales requires elbow grease, that sales is free. Always remember opportunity cost: if you are doing something, you are not doing something else.

 

 

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