Spotlight on business to business services
Business-to-business is a fast growing sector that provides services such as business coaches and brokers, accounting services, courier services, printing & signage, business &, recruitment services, financial services and travel services. Established in the main from the 1980’s to the 2000’s in response to a growing need to outsource specialized business services, this sector continues to see growth in recessionary times as businesses downsize and outsource and the nature of business changes as a result of the pandemic and the future in 4IR.
Franchises in B2B filled the gap
Business-to-Business franchises emerged in the 1980’s in response to a growing need to outsource specialised business services with the most prolific being, at the time, in the printing, office supplies and courier services. Brands that made an impact then included international brands such as Minit Print, Minuteman Print and local brands Jetline and Prontaprint. PostNet came into the country in 1994 as an alternative to the sluggish non-performing government postal services and soon provided, together with others like 3@1 Business Centre, a one-stop business hub for businesses, households and consumers offering services including postal, courier, copy, digital print, stationery, mailboxes etc. Today there are a number of brands in this space that have progressed to embrace digital services and future 4IR services.
B2B ready for take-off
As the world’s economy readjusts to a new way of doing business, on the back of both the pandemic and 4IR, the “business-to-business” franchise sector is set for exponential growth as businesses trim and tailor their needs by outsourcing key operational areas to specialist franchises. Outsourcing services is often more cost effective for businesses than hiring staff to handle them. The key to the success of business-to-business franchises – whether they are selling products or services – is that, in line with the franchise philosophy of a tried and tested business format based on giving the highest level of service and reliability, these franchises often end up becoming the ‘trusted experts’ to their clients.
- B2B service franchises fall into two categories: those that provide ongoing services and those that provide niche services that are used from time-to-time. Business has changed so dramatically over the past two years, what with companies cutting staff or moving to working from home, necessitating outsourcing many business services they would normally have done in-house. This could include business and accounting services, marketing and social media services as well as more basic services like digital and delivery services. The latter have seen a strong uptake since lockdown which, if the trend continues and becomes permanent, may well herald in new franchise opportunities in this sector in line with the changing shopping habits of consumers.
- B2B Product Franchises. Businesses need a variety of products on an ongoing basis and globally there is a franchise to fulfil their every need. Using a tried and tested supplier in the business-to-business environment has become the norm and franchised brands are often the first choice. Signage franchises serve all industries by providing a full range of custom sign and graphics products while print shops, computer and IT stores combine product and services to offer a full-house service. Globally there are literally hundreds of other B2B product franchises servicing a wide range of businesses which afford franchisees the opportunity to own a profitable business.
To protect, lobby, promote and develop ethical franchising across all sectors in South Africa with specific focus on transformation.
