This is a topic we’ve discussed before. If you’re a managed services provider looking for a greater opportunity to sell, look no further than the small and midsized business (SMB) market — and concentrate on the “small.” The definition of a small business varies by industry, but our MSPs typically focus on companies with fewer than 20 employees — that’s a market of 5.2 million businesses. While it’s easy to be blinded by the potential profits that come along with signing a big organization, you can’t afford to lose sight of the mom-and-pop shops. Small businesses, similar to their larger counterparts, are also in need of technology services and support — only in different ways. That’s not something to be forgotten.
Reasons MSPs Should Target the “S” in SMB
Given attention, the market opportunity that small businesses offer can be lucrative. MSPs need to remember that they don’t need to catch a whale to get a profitable deal — they can make big money selling along Main Street. The fact is, SMBs with fewer than 100 staff members account for 98% of all U.S. companies — that’s 5.7 million businesses according to the U.S. Small Business Association. Equally as interesting (and mind-boggling) is the fact that 90% of those businesses have fewer than 20 employees. Now that’s something to think about, isn’t it?A
Source: SBA Firm Size Data 2014
If this revelation in itself doesn’t tempt MSPs to dive into the market opportunity, then maybe the information from the 2018 small business profile report may pique some interest: small and medium businesses together employed 58.9 million people in the private workforce. A staggering 41 million of them can be found working for companies with fewer than 100 employees. What’s more, the net jobs created by this group equaled 1.9 million — the most of any segment.
Now, think about what it takes to close a deal. It’s exponentially more difficult to get a signed contract from a company that falls in the 20+ employee category. When you’re in contact with the owner or another decision-maker, the sales cycle is typically much shorter. Can you now see the competitive and financial advantages of targeting the “S” in SMB?
Ready to Grow Your Business by Targeting Small SMBs?
If you’re ready to grow your business, it’s time to start targeting the small SMBs. Doing so will help you reach a market opportunity that is overlooked, has little competition, and is very profitable. If your MSP needs help getting started, trust D3UC to help you reach the “S” in SMBs. We offer a cloud phone solution for MSPs to brand as their own and that’s designed to meet the specific needs of small businesses.
At D3UC, we’re dedicated to helping MSPs target small businesses and offer support services, making it easy for you to service SMBs. Contact us to learn more.