Explaining B2B, B2C & B2G business models

Many times, entrepreneurs wish to start businesses and attract thousands of customers. But most of them lack the concept of who they should target. Working with essential knowledge can offer entrepreneurs an edge over their competitors.

To begin, business models refer to more than just goods and services; they also include information and rewards that do not require a purchase.

B2B Business Model:

Business to Business (B2B), is defined as the exchange of information between businesses. This concept tries to strengthen partnerships between businesses to further their mutual interests.

Example: A company that gives software training to other businesses, for example, is designated B2B.

B2C Business Model:

B2C (Business to Consumer) is a business model that involves the direct exchange of goods, services, or information with end users.

For example, customers buy coffee from star bucks.

B2G Business Model:

Business to Government (B2G)on other hand, specialized in companies that provide services, sell goods, or exchange information with government entities. It is a great opportunity for companies that understand the standardized processes of each region. This model allows them to offer their services through tenders or other forms of state contracting.

For example: concentrating solely on government agencies.

C2C Business Model:

Although you already know that the “B” is for business and the “C” stands for consumer, it will be extremely easy for you to guess what the C2C model is.

Consumer to Consumer refers to the fact that some platforms can assist in the connection of two consumers so that each receives a benefit.

Platforms like AIRBNB, which allows guests to stay in empty rooms of locals, manage the C2C business model.

Conclusion:

Although these are the four primary business models, there are many variations, such as B2E (Business to Employee), B2A (Business to Administration), C2C (Consumer To Consumer), C2B (Consumer to Business), G2C (Government to Consumer), B2D (Business to Developer), and so on.

If you’re just starting, you’ll want to figure out which of these online business models your company belongs to so you can design more effective methods for attracting new clients.

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