Business-to-business (B2B) franchising relies on building relationships with companies to generate recurring revenue, rather than serving individual customers. It can be a lucrative franchise model for entrepreneurs with strong business acumen. To understand whether a B2B franchise is a good choice for you, explore examples and advantages of this model.

B2B Franchise 101

A business services franchise offers products or services directly to other businesses. Unlike business-to-consumer (B2C) models, B2Bs focus on the needs of organizations, such as offices, small businesses, other franchises, or large corporations. B2B service franchises provide services a business needs, such as marketing or payroll, and B2B product franchises offer products businesses need, like signage or branded material. B2Bs require relationship-building skills and have longer sales cycles but often have higher-value sales.

Some examples of B2B franchises include:

• Commercial cleaning
• Printing services
• Accounting and tax services
• Business coaching
• Inventory management solutions
• Staffing and recruitment

In 2023, there were 102,540 business services franchises in the U.S., according to the International Franchise Association. The number of business services franchises is expected to climb 1.8% and generate $107.6 billion this year, up from $95.3 billion in 2021. Shifts in “workforce dynamics, purchasing behaviors, and lifestyles” are helping drive the B2B industry forward.

Advantages of B2B Franchises

Like any franchise model, there are disadvantages and advantages of B2B.

Pros:

• Recurring revenue: Once a B2B business proves its value, clients will likely continue the partnership, ensuring consistent earnings and long-term relationships.
• Higher transaction values: B2B transactions typically involve larger quantities or premium services, leading to higher average order values than B2C transactions.
• Networking opportunities: B2B businesses provide extensive networking opportunities, allowing franchisees to build a web of professional contacts to fuel business growth.
• Low overhead: Many B2B businesses require less startup costs than a consumer-focused franchise. Some can even be operated from a home office.
• Work-life balance: Achieving work-life balance as a business owner is not a pipe dream. B2B businesses typically operate during regular business hours, leaving evenings and weekends free.

Cons:

• Limited target market: Depending on the B2B business you choose, you may have a limited target market, potentially hampering your ability to grow. Choosing a high-demand industry can increase your market size.
• Long selling cycle: B2B businesses traditionally have a longer selling cycle than consumer-focused operations, requiring diligence to develop solid customer relationships. Having the support of a proven brand and making dedicated sales efforts can make all the difference.

AtWork: Built for B2B Success

If the pros of launching a B2B business sound appealing, leverage your interpersonal and networking skills to build a prosperous business with AtWork, a franchise leader in the staffing industry.

AtWork helps put people to work by providing contingent and permanent workforce solutions, mainly in the light industrial, manufacturing, and office clerical sectors. AtWork franchise owners help people in their communities build their careers and businesses of all sizes find success through workforce solutions. At least 5.6 million unemployed Americans want to find a job, generating a high demand for AtWork’s services.

Are you wondering if you have the skills to open a franchise and how to start a staffing agency? AtWork has the answers. AtWork offers training, marketing support, and ongoing guidance. The staffing expert’s support services ensure you have the tools you need to be successful, including ongoing accounting and field operation support. The accounting team handles your payroll funding, client payment processing, garnishment management, tax filing, payments, and more to allow you to concentrate on relationship-building and growth.

Join the AtWork Franchise Team

With more than 100 locations across the U.S., AtWork has ample territories available for development. Franchise candidates need an estimated net worth of $250,000. AtWork startup costs range from $153,500 to $210,500, which includes a franchisee fee of $40,000.

Get started today to connect with someone from AtWork’s franchise team and learn more about B2B franchising.