10 Things you Didn’t know about To B
Since the first day of the Chinese New Year, I have shared with you some of the most read articles on our official account.I wish you all the best, all the best and all the best in the New Year.The hard Business Logic of To C: 10 Things You Didn’t know about To BThe following text.As a business consultant, I am often asked this question recently: HOW do I transition from a To C business To a To B business if I want To increase my business?I am a key account sales, how to deal with enterprises?What is the business logic of To B?I often say that the best thing about a To B business is its process and complexity.But what exactly is the process?How complicated is it?The logic of To B is completely different.Today, I’m going To share with you 10 things you might not know about the To B business.If you want to make money from a company, you need to know how the company spends its money.Every year, businesses have a budget.This budget can be used for project development, procurement of supplies, product promotion, brand promotion…And so on.When will the budget given to each department be spent?When you encounter trigger.We often call it a “trigger event.”There needs to be a good reason to pull the trigger and spend that budget.Such as new product launches, such as exhibitions, such as advertising.Understand this and you will not do things blindly.Many people in the business of To B will often go To Party A and say I have a good idea and want To help you do this, which is also of great benefit To you. Let’s cooperate together.Sometimes it’s not that people don’t want to work with you.It’s about not having a proper trigger.It’s not in his budget this year.Anything not in the budget is an exception.Exceptions require special approval.Special approval is very difficult.Either you have a good enough reason to ask your boss for money, or you need to divert your budget from other areas to meet this need, which is very difficult.The stakes are high for the person applying.So, in the business of To B, you need To know where the money is going To be spent and where the budget is going To be, so that you can pull the trigger at the right time.The essential difference between To B and To C lies in the decision-making process.The decision process To B is too long.Long enough to almost wipe out any impulse, so that all impulse purchases eventually calm down.To C’s consumption decision, measured in seconds.To B’s consumption decisions, measured in “months” or even “years”.If you buy a huawei mobile phone, again expensive again expensive, more than ten thousand dollars also about the same.If you really like it, bite the bullet, a month’s salary, and buy it.But you want to buy huawei a set of switch equipment, that is not a matter of ten thousand dollars, a base station is millions, a list may be hundreds of millions.No matter how fond you are and how impulsive you are, you can’t make a quick decision on millions of dollars, even if you grind your teeth, chew them into powder and swallow them all down.How to do?To examination and approval.Follow a process.Project approval, tendering and bidding, demonstration and publicity, scoring and scoring, delivery of services…Every step was a marathon negotiation and mediation.So To B’s business does not rely on products and impulse purchases To win customers.You have to have BD, you have to have sales, go in.Keep talking, keep talking, keep talking.Impact, impact, impact.To B’s business depends not only on products, but also on sales and service, grinding, consumption and persuasion.To B’s business was protracted warfare, attrition warfare, trench warfare.There are many departments in an enterprise and the communication is complex. It is necessary for A To B business To know how the decision-making chain is transmitted.Have you ever thought about a question: how did the cooperation between the enterprise and you happen?Is it as simple as most people think, party A asks for what party B satisfies?Companies are called different things, but they usually have three departments: operations center, content center, and business center.The operation center puts forward the needs of enterprise development, the content center makes the conditions to meet the needs, and the business center looks for external partners.Operation center → Content Center → Business Center.Therefore, when you face the business personnel of Party A, you are not facing a person, but a whole system behind it.Many people cannot do business with B because they cannot reach a consensus with Party A.I can’t do that.This one is not consistent with my principles.These are not our values.All right, then we can’t work together.So a case, so hastily ended.Perhaps a better way is to ask what I can actually do. In order to promote our cooperation, could you please pass this new plan to your colleagues in the content center, which can also meet your needs?Business center → Content Center → Operation Center.Manage step by step.Affect Party A.The person you’re dealing with is just a link in the system.But no one link can represent the whole system.To B’s business is not about managing one person, it’s about managing the whole system.The above words, you can slowly experience, maybe can realize something.Understand the existence of the system, To B business.Managing up step by step is managing from the bottom up.Because no one person can make a decision, there is a layer of reporting up.The process has been long and arduous.You may even find yourself going back on something you agreed to.You’re upset, but at the same time you have to understand.Because there’s a good chance that, at the last stage, the boss stepped in.The boss is not satisfied, the following people to negotiate, the following people have to listen, involuntarily.So, if possible, know who is the one with the words and who is the one who actually calls the shots.Talk to him.Top-down management is much more efficient and simple.To C business, as long as the consumer and this one head To deal with.But To B’s business involves dealing with hundreds or even thousands of heads in the system.Every brain has its own desires and interests.Every brain is playing a game with each other.Therefore, in order To achieve a To B business, it is often necessary To have a “battle map”, strategize and plan carefully.1. Background information of the enterprise: scale, business scope, operation status, organizational structure, division of labor among departments…2. Personnel information related to the project: everyone’s work, schedule, birthday, hobbies, and even what pets are kept in the family…3. The complex relationship between each department and personnel: who is the purchaser?Who paid the bill?Who is the executor?Is it trust or alliance between them?Is it competition or struggle?Are they for me or against me?Hesitant or neutral?This “battle map” can be colorful and dense.Filled with research findings and negotiation plans.In the To B business, you probably hate these three types of people: finance, legal, and hr.Because they always find fault.We’ve spent all this time, all these meetings, all these dinners, we’re about to sign the deal, and now you’re telling me this clause is no good?Is that number wrong?I need to change again?What the hell!Do you know how hard it is for me?!Don’t complain, understand.They are not easy because they are the bottom line of the business.Let me give you an example.When I was working at Microsoft, my colleagues and I went to see a mayor.We got a little gift, a keyboard, a regular keyboard that you can buy at any store.Microsoft has a rule that you can’t give anything to a fixed customer that adds up to more than $50 a year.Otherwise, it’s a bribe.But that keyboard, in some stores, costs more than $50, in others less.Just got stuck on that threshold.To send?Or not?On the way to see the mayor, we kept calling, asking if the justice department could deliver it, if they could deliver it, if you could just say yes.If we can’t deliver it, we won’t take it out.We had a last-minute discussion, and legal gave us the green light to deliver the keyboard.Sometimes we hate the legal, financial, and hr aspects of a company.But they are the ones who hold the bottom line and keep the company safe.It’s not that the world is getting worse and worse, but that To B’s business is changing too fast and too big.For example, it is often the case that you work with an enterprise, and you have a good conversation with the person in charge, and both sides quickly agree to the commitment to each other.But after a while, the person in charge got promoted, transferred, and a new leader came in.The new leader, with fresh ideas, does not recognise previous commitments.You visit the leader: We agreed before, he promised me, promised me more resources, give me more concessions.The leader might squint and say: That’s not in the contract.Where is it?Would you please point it out to me?Oh?No?I’m sorry.Changes in personnel, shifts in development priorities, and even shifts in leadership are all unpredictable risks in cooperation.Therefore, in the process of cooperating with To B enterprise, anything promised by anyone may not count.What is in a contract is only what is in black and white.In order to prevent corruption, companies often hold tenders for projects that exceed a certain amount of money.There must be at least three enterprises participating in the bidding.There are usually two kinds of “Quotation” for corporate recruitment. One is called RFQ (Request for Quotation).Request for quotation.I have a plan. Make me an offer.One is called an RFP (Request for Proposal).Scheme request.I have an idea, but I don’t know how to do it. Please suggest a plan.In an RFP, there are usually two more bids: one is called a “design bid.”What logic are you going to use to implement this system?What function does it have?What does the interface look like?When the decision is made, a fee is paid to the winning company.Then, recruit a “implementation bid”.Which one of you can get this design off the ground?Who has strong technical strength?Who has better service?Also, in order to prevent corruption, the design and implementation of the bidding cannot be done by the same company.If you pay attention, you will find a lot of companies downstairs, there is a very prosperous industry – copy shop.In order to bid, companies need to print boxes of bidding documents.A bid, hundreds, even thousands of pages.Almost everyone carried the boxes upstairs and stacked them where the bids were stored.So how to score the companies bidding?Generally, there are three scoring dimensions: technology, price and service.And then specify different weights.Participants from all departments, as well as outside experts, scored the final winner.Therefore, there are often many unorthodox or even evil ways.How to bid fairly and openly is a problem that needs to be considered often.Bidding is a common practice in B business. Only with a deep understanding of its logic can we do a good job in B business.Some companies also use a Vendor List to prevent corruption.Companies that want to purchase a project or service can only work with companies on the list.Companies take control of the list and vet the company: is it operating legally?What about your ability?Terms of quotation?Who have you served?…You are allowed to enter its Vendor List after a series of rigorous research.This means: you have to be on my list to be qualified to work with me.Vendor List is also unknown to many people.Therefore, if you want to cooperate with some enterprises, it is best to know first, what is the threshold of cooperation?How do I get on the supplier list?So we can work together better.Seeing this, perhaps you have a deeper feeling that To B business is characterized by process and complexity.To B’s business, there are countless participants, decision makers.Everyone has their own reasons, their own interests.Therefore, there are processes, norms and systems.Under these constraints, the ability to influence decision makers and facilitate cooperation is a skill that must be recognized.Wearing “shackles”, but also “dance”, from cooperation is not far away.I hope this article can give you a deeper understanding of To B’s business and give you some inspiration.I hope you make it.