Which Biz Model is the best for career growth? B2B vs B2C?

I am contemplating how to utilize my background (IB / Consulting) to rank potential job opportunities based on their business model and the ability to grow my career. These roles are all variations of a "manager of strategic finance" position at mid-/late-stage startups handling FP&A, strategy, corporate development, and/or investor relations.

The way I see it, a B2B model, particularly in software, likely has the highest near-term equity comp potential and buzz but I feel as if they are entirely reliant on product and consequently, product- / engineering-related individuals to drive the business. My background is non-technical and by that nature, I think a B2C organization would be the most empowering platform to allow me to drive company-wide business decisions from within a "finance" org. For example, consider UiPath vs Peloton, finance at the former would be entirely relinquished to a support function whereas, for the latter, they could drive key supply chain considerations, pricing, and unit economics + expansion decisions.

Am I thinking about this correctly? What else am I not considering?

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)

Comments (5)

Aug 24, 2021 - 2:39pm

I would go for B2B. Answering this question is pretty subjective because the majority of the people are going to speak from experience. A B2C is more accessible, but the reward is not as big as going for B2B. On the other hand, a B2B can be more profitable and open up many doors, but the risks are way bigger. After all, each type of business involves a risk, but if you're willing to take it, I'm sure that something great can come out of it. I would take a look at B2B list building if you're interested in making a career. It's important to start from somewhere

  • Analyst 1 in IB - Gen
Aug 27, 2021 - 4:22pm

Join a consumer business and immediately feel the difference in impact and control over business strategy. 

Aug 31, 2021 - 8:11am

Your example isn't really illustrative of B2C v B2B so much as it's illustrative of software v hardware, or a less complex model v a more complex one. 

B2C businesses can grow much faster than B2B ones, but (example above nonwithstanding) can also be much simpler from a model / ops perspective… you often have just a couple price points, there's no sales org to think about, etc. B2B you'll have to be a bit more thoughtful around things like quota attainment, customer retention, etc. 

A marketplace may be the best of both worlds… it has the growth potential of a consumer business but much more complexity since your customer base is 2 or 3 sided and you'll need to be mindful of economics for all of them (and how they impact each other!)

at the end of the day, the most predictive indicator of how central your role will be isn't the above though… it's how mature the org is and whether they look at finance as a cost center v a strategic function

Aug 31, 2021 - 8:29am

Dolor repellendus quia similique. Neque minima qui vitae non. Ipsam id placeat iste ipsam. Ut cupiditate ex delectus vel ducimus ut ut ut.

Start Discussion

Total Avg Compensation

September 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (38) $367
  • Associates (217) $232
  • 2nd Year Analyst (130) $153
  • 3rd+ Year Analyst (30) $147
  • Intern/Summer Associate (102) $144
  • 1st Year Analyst (478) $135
  • Intern/Summer Analyst (375) $82