Office Hours: What’s Next for Peloton, The Hidden Value of B2B, and Diversifying your Investments

B2B Stability

Investing in B2B sectors, particularly in infrastructure, offers more stable returns compared to B2C. Scott Galloway argues that B2B ventures, such as healthcare software and maintenance platforms, often receive less human and financial capital, making them less competitive and more profitable 1. He highlights his own success with B2B companies like Profit and L2, which thrived by selling insights to B2C firms.

I think B2B is a better place to invest your human or your financial capital. You want to be investing in the picks and shovels.

--- Scott Galloway

Scott suggests that investing in the infrastructure supporting consumer apps, akin to "selling the picks and shovels," can yield significant opportunities 1.

   

Pandemic Impact

The pandemic has significantly altered the B2B landscape, prompting a surge in enterprise software investments. Scott Galloway notes that global IT spending on enterprise software is projected to reach $600 billion, marking a 14% increase from the previous year 2. Despite his B2C background, he acknowledges the potential in B2B, suggesting that the underinvestment in this sector compared to B2C makes it a fertile ground for growth.

There's an overinvestment in B2C, and an underinvestment in B2B. Why? Because B2C is cooler.

--- Scott Galloway

Scott advises considering B2B companies for career opportunities, as they often offer more stability and growth potential in the evolving enterprise environment 2.