Leverage the reach. “When you look at b-to-b, because you are only looking at one component that will fit into a larger piece (part of a supply chain), you can specialize more,†says Bussey. “When you’re with a consumer you tend to want to be everything to that particular consumer, that one-stop shop. B-to-b allows you to go deeper instead of wider.â€
Pace yourself. To build and reap business from b-to-b relationships it takes much longer than in business-to-consumer relationships. “They have to be aware of
you and know that you’re out there,†says Rugless. “After they build a relationship with you, then there’s an exploration of capabilities, both on your side and theirs. And then you have to wait for the opportunity to work together. So if someone is thinking about such a venture, they need to be realistic regarding how much lead time is necessary to build a b-to-b business.â€Find money to make money. Entrepreneurs should remain aware of laws and regulations, particularly on the federal side. “There are federal mandates for certain agencies to meet certain percentages and to do business with certain companies such as small businesses or women- or veteran-owned businesses,†says Bussey. “A good b-to-b strategy is to target those agencies or large prime companies doing business with those agencies.â€
Bank on banks before you need them. Solid banking relationships are imperative to access capital. “Banks are lending to existing clients, whose businesses they really know,†says Rugless. He poses these questions to minority business owners: “Who are you banking with now? Do they know your business? Do they know you’re thinking about investing in b-to-b?†If so, Rugless advises sharing your business plan with your banker so he or she can figure out how the bank might be able to support its financial products. “Waiting until the end when you need to make the investment to keep the contract is a big mistake.â€
Making bank relationships count is key.