Why B2B Companies Fail and How to Prevent it

b2b companies

Are you afraid of setting up your B2B startup due to fear of failing? To be honest, with the number of startups operating at the bottom line, your concern is justified. However, that doesn’t mean that you’ll also end up with the same fate. Starting up a business isn’t a walk in the park, but with proper planning and a little bit of patience, you can achieve survival.

To make sure that you don’t turn your business into a disaster, take a look at some of the main reasons B2B companies fail, and how you can prevent it.

1. Startups Make Buyer’s Decision Riskier

It pretty obvious that if you are an international buyer, it’ll be difficult for you to trust a newcomer. And new businesses simply have to live with that until they approach either past employers or someone who know the owner personally. Since trust is a crucial aspect in making a purchase decision, many businesses tend to fall short of reaching their breakeven point. Eventually, this leads to the company shutting down.

However, new B2B businesses can stop that from happening. They could either convince their potential audience by making offers that are less risky. For example, you can add terms like money back guarantee, or you can even supply your products on credit. Also, to boost your credibility you can also get listed on a leading online B2B marketplace.

2. Investing in the Wrong Thing and Time

Do you really need a fancy office filled with luxury furniture and designer curtains to run your B2B company? No one is stopping you from getting all these things. However, are they really required from the first day you become operational? Definitely not!

Instead of showcasing your fancy equipment, you can invest more in marketing your brand and generating leads. Failure to generate enough leads is a significant cause of your business getting dissolved. On the other hand, timing of your investment is also a very crucial aspect. There are many products that are seasonal based. For example, sugarcane bagasse manufacturers are more active during the season when sugarcanes are harvested.

3. Too Long Sales Cycle

How long does it take for you to close a deal? A day? A week? Or even a month? Regardless of how much time it takes, you need to start reducing the cycle you need to convince an international buyer to make a purchase decision in your favour. Though one single sale in a B2B module is sufficient enough to fulfil your monthly targets, your business may start facing difficulties in having enough cash to maintain daily expenses. Instead of targeting the big dogs, start with the small companies and start taking orders. Once you’ve got a good clientele that can at least take care of your expenditure, you can either appoint a specialized sales person to target all the big global buyer or, if you are a sales expert, you can also divert your attention towards this task.


What we’d like to highlight here is that with dedication and patience you won’t have to face the consequences of grounding your new B2B business. Startups come and go every day, but you can help your B2B company survive by following our useful steps.


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