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Whether a B2B entrepreneur should focus on Product or a Service startup?

b2b-entrepreneurEntrepreneurship is neither easy nor difficult task. It is something beyond that! In the case of a B2B entrepreneur this can prove a close call. Starting a B2B startup involves a lot of things and the real test of an entrepreneur to decide the niche lies here!

The fire walk for a B2B startup owner does not end up in making a great business plan; it ends with a streamlined plan concluding whether it will be a product-based startup or a service-based startup.

Answering such sort of questions may seem tiring but once determined, running a B2B startup has its own set of advantages!

Product-based Startups:

B2B product-based startups are those accommodating business queries. For E.g. Selling laptops and other related accessories to other businesses or selling office accessories and equipment to other businesses who wish to upgrade their existing business setup.

In short, B2B product-based companies fulfill the needs of other businesses by offering products they have in stock.

Now, basically this type of market is a commodity market. So, unless and until the entrepreneur really knows he has potential buyers out there, he’s just creating liability for himself. Moreover, poor market analysis, low negotiation skills and running on low budget become constraints in running a B2B product-based startup. This can make your startup a slow paced company with less flexibility towards client’s needs.

The best way to deal in this scenario is to offer customized support for your products. One more thing to note here, your product-based startup can do well if it smartly offers multiple options at a reasonable price. By this way, you don’t have to lose out on competition to larger companies.

Service-based Startups:

A service-based startup works well in case of budding entrepreneurs as offered services are flexible in nature. Entrepreneurs have better sustainable options as flexibility is the most important feature of a service-based startup.

Typically, a B2B service-based startup offers service in form of a solution that adds value to other businesses.

For E.g. marketing consultants help other businesses to understand and determine the market ways and trends to predict a forecast.

Unlike the product-based startup, a service-based startup enjoys agility in terms of customer relationship too.

There’s only one disadvantage associated with a service-based startup and that is building a good reputation.

We live in the era where customer and clients can express free opinions and reviews about a service over internet and social media platforms. So, needless to say multiple positive reviews add to the essence of your service while negative reviews can damage your business KPIs.

Therefore, to not fall into bad books of customers, all you can do is do business with transparent and fair policies. With this practice you’ll retain the respective client for long and even attract potential prospects in future.


See, there’s no harm in pursuing any one of the business model stated above. As a B2B entrepreneur the only fact you need to understand are the associated opportunities and sustainability.

Product startup might be good for those who have multiple businesses but can be a risky start for newbies whereas service-based startups can be good for those who are well-versed with know-how on tools of industry. But becomes a costly affair for those who get into agreement upon starting a service and outsource the same from some other industry, coz quality then becomes the topmost concern!

Hence, the only suggestion to put up is, decide niche of the business and then build a sustainable business plan with all business aspects considered!

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