The B2C vs B2B MRR dilemma - who should you choose?

Who should you built your products for? It's a real dilemma.

Creator's are great at spotting solutions for problems that creators are experience - because we experience them ourselves.

Unfortunately solo creators, or individuals have limited disposable cash to spend on subscriptions. While we might be able to convert them quickly, churn levels tend to be high and there will always be a limit to what they can afford to spend per month.

In contrast, businesses have larger budgets. They can afford to spend $100 - $1000s of dollars a month on software that solves their problems. Once they have chosen a solution, churn remains low. It is also a lot easier to upsell and cross sell into an organisation whose annual revenue increases each year.

I am asking this question to myself, as I am currently working on the project ScopeDone.com

We started with out B2C offering - where we build the technical requirements documents for non- technical founders, and match them with no-code/low-code agencies who can build their MVP within budget.

After evaluating the feasibility of this business model, we realised it was relatively high risk. Pre-MVP founders didn't value paying for the technical requirements alone. That meant that we would only generate money at the point we successfully matched them with a product agency.

As a result, we have pivoted to developing the solution into a B2B product for produce agencies. Now agencies are able to embed our automated technical requirement generating tools on their website as a lead magnet. It helps them qualify leads and generate scopes of work to make their quoting easy.

We have done the maths. We will only need 200 B2B customers to become a $1,000,000 pa business. We would need thousands of solo founders to achieve the same thing.

For this reason I am moving towards the mindset that building B2B tools is the smart decision for tools.

But what do you think?

Is B2B the smart way to go, or is there still potential for B2C products?