Current research has indicated that the B2B e-commerce market size has been steadily on the rise in recent years, with the global revenue generated from this industry anticipated to reach as high as $25.65 trillion by 2028. With so much optimism about this rapidly-growing industry, it’s all too understandable that more and more enterprising entrepreneurs are boldly venturing into the Business-to-Business sector. Indeed, with the many demonstrable financial advantages of exploring this industry, it can seem almost too good to be true.
Nevertheless, while creating a B2B sales app can be an incredibly smart idea, it still comes with its own share of both risks. While there are so many avenues to success, there are also a significant number of ways that you can also falter. One important point that many people tend to overlook is the amount of investment capital required to start their own B2B enterprise. Despite being potentially more affordable to enter when compared to other industries, there are still a few financial considerations to keep in mind when planning to launch your own B2B application.
Establishing a Home Base
One of the first things you’ll need when you start creating a B2B app is an actual brick-and-mortar office to call your home while you work on it. While many people might consider this optional, especially with remote work on the rise in this current socially distanced landscape, collaboration does require ease of communication. What better way is there to achieve this than having a shared office space? Costs of having this locale can vary, but you will want to factor in not only your rent into your budget, but also the utility and wi-fi expenses, too.
Procuring Supplies and Equipment
Another essential cost that you will encounter will be the price of the technology you’ll need to keep your B2B business running smoothly. It’s always a good idea to overestimate rather than underestimate exactly how much you’ll need to spend when investing in supplies and equipment for your business’s location. Some of the more commonly used equipment that you may need can include computers, multi-function printers, and telephone systems (such as VoIP). These can all be fairly costly, though, especially if you spring for more state-of-the-art technology for your office.
Actually Building the App
If you happen to have extensive experience in developing apps, then there’s a good chance that you can save a few dollars in this avenue. However, more likely than not, you’ll need to outsource this task to someone who is extensively trained in app development. While you can certainly oversee them, especially if you already have a modicum of experience in development, this is highly skilled labor and comes with an appropriate sticker price. You can reasonably expect to fork over anywhere between $150 to greater than $850 per hour for this talent.
Marketing and Advertising
Once you successfully complete the building of your app, then you can finally turn your sights on the next stage of the process: actually getting your name out there. Not only should you budget for direct advertising, but you’ll also need to consider more organic marketing, too. For instance, collaborating with social media influencers can be a great way to draw more attention to your app. Trade shows are also fairly viable, but travel expenses and the costs of setting up a booth can be expensive. However, they’ll more than pay for themselves once you start to generate revenue.
Keeping an Online Presence
Regardless of the industry that you’re in, having an online presence is non-negotiable. Not only will a website help ensure that your customers can learn more about your app, but it also can give them a means to contact you, should any questions or concerns arise. It’s also a great way to update interested buyers and build your brand’s reputation, too, further crystalizing your app’s credibility. Be prepared to set aside capital for domain registration and security for your website, as well as business email hosting services. And of course, if you don’t know how to build a website, it’s also prudent to hire a web developer, as well.
Payment Processing Fees
With your app finally launched and interested buyers secured, then your final expense will be making sure you get paid for your hard work. This is where payment processing fees come into the picture. Fortunately, they’re relatively small compared to the other expenses you’ll have accumulated during the entire process. Nevertheless, navigating online payment can be tricky, and mistakes can quickly lead to unwanted fees if you’re not careful. Taking the time to have the PCI non compliance fee explained properly can help minimize these penalties, allowing you to successfully maximize your revenue.
Capitalize On Your Success
Ultimately, creating a B2B app can be a fantastic way to successfully garner profit in a highly lucrative industry. By preparing yourself for these expenses and planning ahead for them, you can help ensure you have enough capital set aside to properly fund your enterprise. Failure to do so can quickly lead to you investing a significant sum of money into your business, only to find the well has run dry when you’re tantalizingly close to success. But if you calculate these expenses into your budget, and earmark enough capital to see it through, it’s possible your very own B2B app can be the next big thing in e-commerce.