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When analysing startups, there are couple of important issues one should consider. In order to start a thorough appraisal, you should know what kind of a business you are looking at. Is it selling to consumers, or is it selling to other companies? This issue is of great importance because all the marketing strategy should follow the route.
Suppose, for a moment, that you are a farmer with a large apple orchard. You may have to decide between two possible business models, and you are uncertain about which will benefit you most. You can take your produce to the local farmers’ market, where you will likely sell small batches of your apples to an ever-changing pool of customers, or you can partner with large outlets. While large outlets will buy large quantities of apples (thousands or tens of thousands) from you, the retail giant will require a consistent supply at a fixed cost, as well as delivery at specific times to specific locations.
In other words, you must choose between a B2B and B2C model. If you currently face some version of this question, you may be wondering what the differences are in selling B2B or B2C.
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