Paul from Philadelphia Table Company explains the two main business avenues: direct-to-consumer (D2C) and business-to-business (B2B). He shares his experience with both, highlighting the challenges and benefits of each, and advocates for diversification to create a resilient business model.
A short editorial from the VEONIB team on why this content matters.
SEONIB sees this video as a practical guide for makers to understand and balance D2C and B2B channels, emphasizing that diversification is key to sustainable growth.
Unlike generic business advice, this video offers a real-world example from a furniture maker, showing how to apply these concepts in a niche industry, which aligns with SEONIB's data-driven approach to content that answers specific business questions.
Handmade business owners should audit their current sales mix and explore adding one new B2B or D2C channel this quarter to build resilience.
Selling products directly to the end user, bypassing intermediaries.
Selling products or services to other businesses that may resell or use them.
Different sources of income for a business, such as D2C and B2B sales.
Spreading business across multiple channels or markets to reduce risk.
Prospecting potential B2B clients via emails, calls, or visits without prior contact.
The process of creating a strong, recognizable brand identity to attract customers.
A situation where competition forces prices down, reducing profit margins.
What is the difference between B2B and D2C?
B2B sells products or services to other businesses, while D2C sells directly to the end consumer.
Which is easier to start: B2B or D2C?
D2C is generally easier to start because you can sell directly to customers at markets or online, while B2B requires more upfront outreach and relationship building.
Why does D2C growth become harder after a certain point?
Once you hit around $250k-$300k in revenue, you start competing with larger brands that have bigger marketing budgets, making it harder to grow without investing in branding and advertising.
What are the advantages of B2B sales?
B2B allows for brute-force prospecting like cold emails and calls, which can bring in cash quickly, and can provide steady, repeat revenue from loyal clients.
What are the risks of relying solely on B2B?
You may be seen as a commodity, leading to price competition, and if a major client leaves or faces downturns, your business could suffer significantly.
How can I diversify my revenue streams?
Aim to balance your sales between D2C and B2B, like splitting your business into thirds across different customer types, to reduce dependency on any single channel.
Why is diversification important for a handmade business?
It protects you from market changes, like the COVID-19 pandemic that shut down hospitality clients, by ensuring you have other income sources to fall back on.
What are some D2C channels for handmade businesses?
Farmers markets, craft shows, Facebook Marketplace, Etsy, galleries, and your own website.
What are some B2B channels for handmade businesses?
Interior designers, contractors, showrooms, hospitality businesses like hotels and restaurants, and trade shows.
How should I approach B2B sales if I need cash quickly?
Focus on cold outreach—send emails, make phone calls, and knock on doors to connect with potential business clients who have immediate needs.