B2B companies are in a unique position compared to B2C businesses. When you market your services at other businesses, you instantly decrease the potential clients you can find. Instead of attacking a market with thousands of consumers, you may have one hundred businesses to aim at. Therefore, you have to choose a business idea that's proven to succeed. With that in mind, it might be worth considering an aggregates business.
What is this business and why is it profitable? All of your burning questions will be answered in this short guide:
What is an aggregates business?
Aggregate is a term for loads of different materials used in construction. They typically consist of ground down materials that construction companies use when building different things. You can find many different types of aggregates, and an aggregate business will focus on selling these products to builders. You either source them yourself or find a company that sells them to you. From here, you move them on to any building companies that need them.
Why is this a profitable idea?
This business is profitable because you target an industry that's always competitive. The construction sector is full of potential clients itching to purchase quality building materials. Therefore, you have loads of different companies inquiring about your service. Compare this to other industries, and you definitely have a better chance of securing lots of regular clients. That's another positive; most construction companies find an aggregates supplier and stay with them. So, customer retention isn't that much of a challenge. Plus, the construction industry will always be essential - how else will things get built?! Thus, there's no worry of your target market going bust and leaving you with no clients.
What are the main concerns when starting an aggregates business?
Your main concerns are twofold. To start, you have to worry about how you will acquire your products. How are you going to get your hands on the aggregates? Most companies will choose to find the source materials, then turn them into mixed aggregates using machinery. Companies like Thompson Rock Mixers sell different equipment that helps you mix and break down rocks. From here, you have lots of fine aggregates to package and sell to your clients.
The second concern is the competition within this industry. You will find plenty of builder's merchants selling aggregates, along with other specialised aggregate companies. So, you have to work on setting your business apart from the rest. To do this, you might consider offering better prices or a more diverse product. If you have a wider variety of aggregates to choose from, it makes you seem like a more attractive business. The builders will have more choice, so your sales will soar!
If you're thinking about B2B business ideas, this needs to be one you consider. It's ideal for anyone to start, particularly those of you with some construction experience. When you look at it, an aggregates business ticks all of the right boxes: it's in a competitive industry, it's easy to set up, and your products are in demand.