Did you know the global VoIP market is expected to see double-digit growth by 2025? According to Global Market Insights, the market is estimated to hit a record $55 billion – jumping from $20 billion in 2018. This surge is propelled forward by new technologies and services in the business world that help companies communicate in more efficient ways. And it’s growing in popularity with companies that are considered the smallest of the small: the very small business – or VSB, if you will – that we define as having fewer than 20 employees.
Typically, we only see statistics about three types of businesses in the U.S. – small, medium, and large. Since the VSB (1-19 employees) is lumped together with the small business (20-99 employees), it’s not a segment that gets much attention. But it’s a market that should not be ignored. Here’s why.
Taking a Closer Look at the VSB Market
VSBs added 1.1 million net jobs in 2015 while businesses with 20-99 employees saw gains of only about 400,000 net jobs. There is enormous opportunity to be had in the VoIP market with the VSB, and we’re here to help MSPs realize and capture the explosive opportunity in such a space.
MSPs should reconsider their strategy of targeting companies with more than 20 employees simply because they have a greater headcount. We know it seems to make sense, after all, the more employees there are, the more phones you’ll sell. But, at the end of the day, you’re selling to companies, not employees. And the opportunity that lies with the sheer volume of VSBs out there topples the opportunity available with the “small” companies by a ratio of 10:1.
The proof is in the numbers – 5.2 million VSBs versus 500,000 small companies. With both markets each employing approximately 20 million people, MSPs looking at the small market for the lion’s share will come up short. Additionally, there’s more competition for the small customer, especially ones with 50-99 employees. You’ll come up against more MSPs like you selling to those businesses because most MSPs aren’t looking at the VSB market – they’re looking at the “larger” small business.
How MSPs Can Benefit by Targeting the VSB
Small businesses and the very small businesses are two entirely different markets with different messaging, buyer personas, and buyer journeys. Think about the differences between businesses with fewer than 20 employees versus ones with more than 20 employees. For example, fewer than 20 are more likely to not have an IT department whereas more than 20 will. The same can be said about decision-making. Where businesses with more than 20 employees usually have a team of decision-makers, a VSB’s decision-making process is typically driven by the business owner.
Further differences also fall in the MSP’s favor: VSBs won’t care much about your lack of CISCO certifications, for example. They are looking for someone to take on the burden of managing their technology, and they likely have very little understanding of how it all works. They’re in need of a sticky, long-term partner who will be there for their growth. And – as we’ve seen in the VoIP market stats – they’ll be a large part of the surge in VoIP usage. Will you be there with them?
Want Help Reaching the VSB?
Do you want to take advantage of new opportunities found in VSB market? Be ready for the new growth in the VoIP industry, trusting that D3UC has got your back. We’ll help you deliver white-label cloud phone solutions to your customers while helping to increase your profits. Interested? Reach out to us today to get started.