What I learned from Startup Weekend NYC business-to-business edition (B2B)
This post originally appeared on blog.up.co
Having volunteered at several previous SW events, I found Startup Weekend NYC B2B Edition to be really informative. The event was stacked with helpful mentors and speakers, including Roger Osario, Startup Weekend Facilitator, Eddie Cullen, Community Manager at Grand Central Tech, Tony Chang, Product Manager at Intuit, and Chi Nguyen, Product Strategist at Perka and Lead Organizer of Startup Weekend B2B.
Blaga Popova, Director of Engineering at Voyat and a former Startup Weekend NYC organizer, kicked off the weekend by highlighting some important differences between B2B (business-to-business) and B2C (business-to-customer) companies:
B2B companies typically have lesser known brands
B2B companies usually deliver platforms that work behind the scenes and may be white-labelled, whereas B2C companies rely on popularity and brand recognition.
B2B companies have a few large clients, while B2C companies have many customers
B2C companies often build products that create enjoyment or convenience for a wide audience. Their larger user bases can quickly swing from wild enthusiasm to complete disinterest in a matter of days, creating instability for the business. Conversely, B2B companies enjoy greater retention rates. Clients take longer to acquire and onboard, but they see the purchase or subscription more as an investment, so they often stay and help improve and steer the product.
B2B companies focus on solving existing problems and maximizing near-term revenue
Investors can be especially tough on B2Bs. Venture capitalists demand more developed business plans that account for revenue, product/market fit, and scalability. The flip side, however, is that B2B companies also tend to stabilize more quickly, so they can rely less on investor funding in the long run.
B2B companies need to consider how to seamlessly integrate with legacy software that already exists
B2C companies have more flexibility to build on trending frameworks and technology. Shane Brauner, Vice President of IT and Operations at Schrödinger and a mentor at SW B2B Weekend, commented, "Lack of integration with existing, legacy systems is a key blocker for startups who are trying to get businesses to invest in a new technology."
Overall, I learned a great deal from just the Friday evening kickoff of the Startup Weekend B2B Edition, and I'm curious to know what YOU think. What are some of the biggest similarities or differences between B2B and B2C companies? Which one do you prefer? Let me know in the comments section below!