Determine Your Market: Who Are You Selling To?

When starting or growing a business, one of the most important questions to ask yourself is: Who are you selling to? You may often hear terms like B2C or B2B in conversations about business types. But what do these terms mean, and how do they apply to your business?

B2B = Business-to-Business

If your business sells products or services to other businesses, you are considered a B2B (Business-to-Business) company. Examples include software providers for enterprises, manufacturers supplying parts to other companies, or consultants offering specialized services to organizations.

B2C = Business-to-Consumer

If your business sells directly to individual consumers, then you fall into the B2C (Business-to-Consumer) category. Retail stores, restaurants, and e-commerce platforms that cater to individuals are typical examples of B2C businesses.

Can You Be Both?

Most businesses primarily identify as either B2B or B2C. However, it is possible to serve both types of customers. For example, a restaurant is typically a B2C business, serving individual patrons. But if that same restaurant offers event hosting for corporate gatherings or provides catering services for office lunches, they also operate in the B2B space.

Narrowing Down Your Customer Base

Once you determine whether your business is B2B, B2C, or both, the next step is to define your specific customer base. Ask yourself:

• Who are your customers? Are they individuals or businesses?
• What is their economic profile? Will your customers be affluent, middle-class, or budget-conscious?
• What is the size of your target businesses? Will you cater to small businesses, large enterprises, or both?
• Where are they located? Will your customers be concentrated in a specific geographic region, or will your business serve nationwide or even international markets?

Why This Matters

Understanding who you are selling to is the foundation of your marketing and sales strategies. Your audience determines how you design your products or services, how you price them, and how you communicate your value proposition.

By identifying whether you are B2B, B2C, or a mix of both, and by defining your target audience in detail, you set the stage for building a successful and focused business strategy. Take the time to analyze your customers and refine your approach to meet their needs effectively.