What Is B2B And Why Choose This Business Model For Your Startup? Part 2

What Is "B2B"?

"B2B" - means that you are selling a product or service to other businesses.

A few examples of "B2B" product based companies would be:

    Ex 1: Selling CRM Software "Customer relationship management" to organizations so they can keep track of their sales leads, manage their sales cycles and determine a cold-calling schedule.
    Ex 2: Selling office equipment to companies who wish to upgrade their existing furniture.
    Ex 3: Selling security and access control hardware and systems to building management companies, universities and municipalities.

Looking Further Into "B2B" Product-Based Companies

Why do I recommend that the first time entrepreneur shy away from "B2B" product based companies?

Product based companies are typically not as fast moving as service-based companies meaning that the entrepreneur cannot change their offering in accordance with the clients' needs as quickly as they could with a "B2B" service-based company. Also, upon meeting a prospective client, the entrepreneur may see profitability in selling another solution into the company, but being able to offer a new product that quickly can prove to be quite taxing and quite expensive, especially when money is tied up elsewhere.

The Easy Way to Open Source

There has been a revolution in home electronics in recent years, not least because of the increasing sophistication of open source technology. Open source is a production and development environment that aims to give access to the technology underlying internet and electronic devices.

Along with the increasingly high quality of electronic components that are readily available on the open market, the open source development model has made it much easier for hobbyists and enthusiasts to develop their own software and hardware. The number of people developing their own devices at home is growing rapidly, whether they are keen amateurs wanting to learn more about electronics, or trained engineers working to develop their own prototypes for products that might one day have commercial applications.

For these enthusiasts, the availability of open source technology has been a huge catalyst to invention and creativity, and they have made the process of learning about or developing new equipment far easier.

A look at some of the electronics components available from the growing number of online suppliers quickly reveals the sophistication and simplicity of the boards that you can buy. Take, for example, the Fez Panda. Behind the cute name lies a.NET micro framework that allows users to program and debug using Microsoft's free Visual C# Express. It allows applications to be loaded via a USB cable with full featured debugging capabilities, such as stepping in code or inspecting variables.