Page 239 - merged.pdf

CHAPTER 8 MASTERING YOUR MONEY

Your company could also be structured to sell to individual
end users (Business to Consumer businesses (B to C)) or to
other companies (Business to Business businesses (B to B)).
‘B to C’ companies like restaurants, hair salons, boutiques or
learning centres tend to require more money for advertising
& promotion to the mass market and to acquire a retail space
(after all, you cannot expect your customer to visit your house).

On the other hand, ‘B to B’ businesses don’t usually require
money for advertising and promotions. Business is usually
secured through personal direct selling, direct mailing or
telemarketing. And since it is usually common for the vendor
to service the client in the office, a retail space is not always
necessary. One disadvantage of ‘B to B’ businesses is that
payment is usually received only 30-60 days after the
product/service is delivered. In the case of ‘B to C’ businesses,
payment is usually immediate in cash. In this way, less money
is required as cash flow to sustain the business operations.

In general, business can be divided into four main categories.
1)‘Product B to B’ businesses, 2) ‘Product B to C’ Businesses,
3) ‘Service B to B’ businesses and 4) ‘Service B to C’ Businesses.
Below is a table summarizing the characteristics of each
category. As you can see, ‘Service B to B’ businesses can be
usually started with much less capital. All you need is to start
by working from home with a laptop, mobile phone and
your brainpower!

230 SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES