Whether you are a new business looking for ways to expand, or an older business looking to revamp your business and prolong its life cycle, increasing your company’s revenue should be a priority. A trip down the Road to Revenue Less Traveled is exactly what you need.
On the Road to Revenue, the most important aspect is the business model(s) your company chooses, as there are multiple business models. Three of the most popular business models are:
- B2C – the business to consumer model
- B2B – the business to business model
- B2G – the business to government model (often forgotten but incredibly lucrative)
What makes these business models different from one another are the buyers. Each model represents a different customer segment for your business.
Business to Consumer
In B2C, the most common model, consumers (aka you, me, and every other individual) are identified as the end-users of the products. The transaction is directly between the business and the consumer. According to Investopedia, the traditional references to the B2C model refer to shopping at the mall, eating out in restaurants, and other forms of consumers making purchases directly from businesses.
Once the internet took the world by storm there were a few additions to the concept, however, the customer as end-user is still the factor that identifies a business to consumer model.
Business to Business
The B2B model is exactly what the name suggests: a business model where businesses are directly conducting revenue transactions with other businesses. A great example of this would be the transactions between product manufacturers and their wholesalers or distributors.
Maintaining a business within the scope of those two business models is perfectly fine, but wouldn’t you like to pocket the revenue that is being left on the table? If the answer is no, thank you for your time, but if your answer is YES! (Keep Reading)
|“Taking advantage of every opportunity is what makes a successful business. “|
Business to Government
If you want to access the road to revenue less traveled, you have to seize the opportunity to do business with the government. A common misconception is the government does not buy the products or services your business provides. Chances are, this is not true! Get it out of your mind!
The B2G business model is a great way to grow the revenue of your business because it can be implemented as a secondary revenue stream that will not require you to change the way you do business. Working in conjunction with the business model that you are already implementing, imagine how much revenue you could generate with multiple streams. If you are confused about how it works let’s put it into perspective.
Think of the government as the business that it is, and consider the government employees the end-users or consumers. If you own a print shop or a paper distribution company, selling directly to businesses or consumers, your business model does not change. When you sell paper to the government’s employees, or the government as a business, your business is still operating its original B2C or B2B business model, but because the government conducts business through contracts, your business is now also B2G.
Doing business with the government could be a game-changer for your business, no matter the age or size.
Do you have any experiences doing business with any governments? Let us know in the comments! Don’t forget to check back here for more information on doing business with governments, including how to get priority on contracts, what types of things governments purchase, and more!
Doing business with the government is how to access the ‘Road to Revenue Less Traveled’!www.govlia.com