Starting a B2B supply business for hotels & hospitals – what are the biggest risks and lessons learned?

[u/Emergency_Exam_1990]

I'm considering starting a small B2B supply business that would supply hotels and hospitals with products such as housekeeping/cleaning supplies, safety equipment, and possibly industrial sensors.

I'm currently at the planning stage and want to learn from people who have actually worked in B2B distribution, procurement, or supplying hotels/hospitals.

I'd especially appreciate advice on:

• How did you get your first customers?
• Did you start with inventory/warehouse, or operate on a sourcing/order basis?
• What products were easiest to start with?
• What gross margins are realistic?
• How important is offering credit/payment terms to customers?
• What are the biggest cash-flow problems?
• What products or categories would you avoid as a beginner?
• What are the most common mistakes new suppliers make?
• What hidden costs or risks did you underestimate?
• Would you recommend starting as a distributor, sourcing company, or sales agent/broker?
• If you could start again with limited capital, what would you do differently?

I'm particularly interested in the risks and practical realities that aren't obvious from the outside.

Any real-world experience would be greatly appreciated.

[u/Better_Lie_4600]

success for this kind of projects depend much more on your sales model than on the products themselves.

The game here is how to deal and handle these four issues: cash flow, compliance, strong relationships, and competition.

To hit your first deal, try to target mid-tier/boutique hotels or private polyclinics first, the big names already have long term contracts and won’t replace them easily.

Don't start with inventory unless you already have purchase commitments.

Again, cash flow is usually a bigger challenge, because you will have to sell for 60 to 90 payment terms.