If you enjoy sales and building relationships, a business-to-business (B2B) franchise may provide the perfect opportunity for you to finally hand in your resignation and own and operate your own business.
As a B2B franchisee, you’ll help companies and business owners by providing them with time and overhead saving services or products they need.
B2B franchises offer many benefits including:
- Multiple Revenue Streams: B2B franchise owners typically work with both smaller and larger companies, which equates to more revenue opportunities. The average pre-tax income for the Business Services franchise sector is $96,100 and for Advertising & Sales franchise sector is $94,300.*
- Customizable Offerings: Many B2B services franchise offerings can be customized to accommodate various needs of customers. For example, an accounting service can handle payroll for one business and balance sheets for another or an IT consulting company can offer varying levels of support based on clients’ needs.
- Larger Transactions: The amount of revenue a single B2B transaction generates is typically larger than that of a single business-to-consumer (B2C) transaction.
- Loyal Customers: Businesses tend to be loyal customers, which equates to a recurring revenue stream. Businesses remain with vendors with whom they have established relationships rather than risk issues by switching to someone new.
- Provide Services That Are In-Demand: Companies seek to outsource work that is not their core competency. They know that bringing on staff is not as cost-effective as outsourcing and that they benefit from the specialized knowledge of the businesses to which they outsource work.
- Affordability: B2B franchise opportunities can be less expensive than B2C ones, particularly if the B2C franchises needs a spot in prime retail space to get foot traffic. Most B2B franchise offices can be located off the beaten path, some in your home office, since your client interactions will take place at their place of business, via phone, or e-mail. Over half a dozen of the franchises on Franchise Business Review’s 2017 Top B2B Franchises list can be started for under $50,000 and two for under $5,000.
“Our franchisees can operate from a home based office, which equates very low overhead,” says Sandee Devine, VP Franchise Development of Murphy Business & Financial Corporation, a business brokerage franchise. “They can also choose their clients and there’s unlimited income potential.”
- Better Work/Life Balance: Many B2B franchisees’ hours are that of typical businesses – Monday to Friday sometime between the hours of 8am and 5pm. You’ll have weekends off!
- Satisfaction of Helping Others: As a B2B franchisee, you’ll help companies and business owners by providing them with services or products to help save on time and overhead. You’ll help your customers succeed while making your own business successful.
- Not Subject to Trends: Businesses have specific needs for certain products and services, so are a less fickle audience than consumers who may be influenced by trends regarding what they’ll eat, clothing styles, etc.
“B2B models are great for the mere fact that you are working with companies that have very specific needs for particular services,” says Michael Plummer, CEO of Our Town America.
- Strong Support System: Perhaps the biggest reason entrepreneurs invest in a B2B franchise is the fact that it is a franchise. There are several benefits of investing in a franchise over starting a business from scratch. The speed to which you can be open, operating, and on your way to profitability and the ongoing support of both your franchisor and fellow franchisees, are the largest.
“We are a teamwork oriented system, which means our franchisees help one another for the benefit of all.” – Sandee Devine, VP Franchise Development of Murphy Business & Financial.
“We provide initial and ongoing. Each franchisee acquires our ‘Quick Start Marketing Program’, a proven lead generation program to help them generate business as quickly as possible,” says Devine of Murphy Business & Financial. “We are a teamwork oriented system, which means our franchisees help one another for the benefit of all. We provide an online franchise community where our franchisees can share questions, best practices, and experiences with one another as well as a library of forms, documents, pricing tools, training webinars and more. In addition, we provide national and local websites. Our National Team Center handles most of the back office support for our franchisees so they can spend their time meeting with clients and generating revenue. As a result, they don’t need to hire administrative staff unless they want to do so.”
We believe knowledge is power, so provide an intensive week-long Sales and Marketing and Operations training for each new franchisee. – Malvina Messler, Executive VP of Payroll Business Development at Payroll Vault.
“We believe knowledge is power, so provide an intensive week-long Sales and Marketing and Operations training for each new franchisee. They learn the ins-and-outs of growing their franchise including lead generation tactics, how to develop, maintain, and grow a referral partner network, how to conduct sales, and how to onboard new clients,” says Malvina Messler, Executive VP of Payroll Business Development at Payroll Vault, a payroll and workforce services franchise. “We are unique in that our franchisees get a chance to go into the field with us. We take them to networking events and client meetings. Our corporate office also hosts bi-weekly Sales and Marketing calls, a monthly Owner’s Call, two annual conferences, and provides an online forum for peer-to-peer support, engagement, and idea sharing.”
How to Choose the Right B2B Franchise Opportunity
Now that you know the benefits B2B franchises offer, you may be ready to start researching which one is right for you. It’s important to remember that not all franchise opportunities make for a good investment.
The best way to know if a franchise is worth investing in is to find out what current owners think of it.
The best way to know if a franchise is worth investing in is to find out what current owners think of it. The franchises on franchises on Franchise Business Review’s 2017 Top B2B Franchises list were selected based on franchisee satisfaction survey feedback from 4,934 franchisees who own and operate them. Only 33 B2B brands out of 53 made the list.
To increase your chances of investing in a franchise that will meet your financial and personal goals, it’s a good idea to explore FBR’s Franchise Buyer’s Toolkit. It takes you through investing in and running a franchise business, provides you with an in-depth breakdown of the Franchise Disclosure Document (FDD), which if you understand how to read it provides crucial insight into the franchise you are interested in, and features an online course that will enable you to make realistic, personalized financial projections in order to understand how much money you could make.
If you’re curious about what being a B2B franchisee is like, be sure to read the informative FBR Franchisee Insight Q&A’s with B2B franchise owners including our most recent ones, Chris Beer with Our Town America and Connie Chandler with Minuteman Press.