As CEO and co-founder of Rumbleship, Alex Lugosch became a banker in order to make life easier for B2B e-commerce sellers and their buyers. Recently, I spoke with Alex about how Rumbleship can help B2B sellers solve their accounts receivable management challenges.
The business-to-business (B2B) sector is the sleeping giant of e-commerce. Cloud-based e-commerce operations platforms such as Jazva are helping to awaken the massive potential of modern B2B selling. I recently had the opportunity to speak with Ryan Elich about how Jazva is helping make life better for B2B sellers.
Business buyers want payment terms from their vendors, and B2B sellers want to offer them. After all, extending a line of credit to a customer can lift sales and promote loyalty. Michael Noble, the founder and CEO of Apruve, says, “We see about 2.2 times more order frequency and about 3.3 times more line items per order for customers that are given a line of credit versus asking them to pay with a credit card.” It’s no surprise that upwards of 80% of B2B transactions involve customer credit. That said, offering payment terms has a downside, which Apruve seeks to mitigate by offering credit management as a service (CMaaS) to B2B sellers.
Many human scale businesses would like to augment their direct (business-to-consumer or B2C) marketing channels with complementary, indirect (business-to-business or B2B) channels—commonly known as wholesale distribution. The problem with wholesale is that it can devolve into an order-processing hairball. Absent better alternatives, wholesale customers submit orders by phone, email, and even fax. Every relationship is unique. The resulting overhead can be prohibitively expensive. Roger Kirkness at Convictional wants to help automate B2B e-commerce to allow sellers to grow their wholesale channels profitably.
Dave Bayless spoke with Justin Cooke, a founder of Empire Flippers, a business broker, about buying and selling online businesses, the evolution of e-commerce, and building a business that serves his goals.
P2Binvestor is an online lender that specializes in making asset-based loans to growing business-to-business sellers who can’t access bank credit. I first spoke with Krista Morgan, P2Bi’s co-founder and CEO, in May. Since then, Krista and her colleagues have launched a new partnership with community banks that may be indicative of a new era of choice for human scale businesses.
With the introduction of Shopify Flow and the Wholesale Channel, Shopify Plus will help accelerate and transform business. By reducing the barriers to commercialization and learning faced by niche producers and specialty retailers, Shopify Plus will increase the incentive and opportunity for merchants to continue to sharpen their market focus.
“The Mom Test” by veteran entrepreneur Rob Fitzpatrick is one of our favorite business books. Concise, clear writing describes actionable concepts that will instantly help you have better, more productive conversations with prospective customers about your business idea. Listen to our podcast conversation about why we love the book, and download our selection of key excerpts along with our annotations.
P2Binvestor (“P2Bi”) is an online marketplace lender that provides asset-based lines of credit of $1 million or more. Typically, its borrowers are rapidly growing consumer products and professional services companies that can’t yet access bank credit. Through the application of technology, P2Bi has democratized access to this kind of debt financing by making it available to companies having annual revenues as low as $1 million. I spoke with Krista Morgan, co-founder and CEO, about what makes P2Bi different.
Free cash flow is an important measure of profitability for human scale businesses. As a metric, free cash flow takes into account the need to make ongoing investments in inventory and accounts receivable. It also acknowledges the need to make maintenance expenditures in any equipment or other fixed assets you might have. It represents the cash available to expand production, develop new products, pay dividends, and service debt.