Very small businesses (VSBs) with fewer than 20 employees represent a massive and largely untapped revenue opportunity for managed service providers (MSPs) in the rapidly growing cloud phone market. While often overshadowed by their larger SMB counterparts in industry reports, VSBs quietly drive significant economic growth. MSPs who overlook this segment are leaving money on the table.
The global VoIP market is on a meteoric rise, projected to soar from $20 billion in 2018 to $55 billion by 2025. This explosive growth is fueled by innovative technologies and services revolutionizing business communications. One segment is poised to be a significant driver of this surge: the very small business (VSB) market, defined as companies with fewer than 20 employees.
VSBs: An Overlooked But Lucrative Opportunity
Typically lumped together with larger small businesses (20-99 employees) in market statistics, VSBs often fly under the radar. However, ignoring this segment would be costly for managed service providers (MSPs) looking to capitalize on the VoIP boom. Consider this: In 2015, VSBs added 1.1 million net new jobs, nearly triple the 400,000 generated by businesses with 20-99 employees. As these VSBs grow, so will their need for sophisticated yet affordable communication solutions like VoIP. The opportunity is immense.
Why Bigger Isn’t Always Better
Many MSPs make the mistake of targeting businesses with higher headcounts, assuming more employees equals more VoIP users. But this “bigger is better” approach overlooks a simple truth: You’re selling to companies, not employees. The real opportunity lies in the sheer volume of VSBs. There are 5.2 million VSBs in the U.S. compared to just 500,000 small businesses with 20-99 employees – a ratio of more than 10 to 16. Chasing after the larger small businesses means fiercer competition from other MSPs. Meanwhile, the VSB market remains largely
untapped.
Tailoring Your Approach for VSB Success
Selling to VSBs requires a different playbook than larger small businesses. Understanding the unique characteristics, needs, and decision-making processes of VSBs is key to crafting a winning strategy. For example, VSBs are less likely to have dedicated IT departments. Unlike larger companies with buying committees, the business owner is often the sole decision-maker. VSBs also care less about certifications and more about finding a trusted, long-term technology partner to support their growth. By tailoring their messaging, offerings, and sales tactics to the VSB persona, MSPs can differentiate themselves and build lasting, profitable customer relationships. The “set it and forget it” nature of VoIP services lends itself to becoming that sticky, essential partner VSBs crave.
Riding the VoIP Wave
The data doesn’t lie. VSBs are poised to be a significant force in the projected explosion of VoIP adoption over the coming years. MSPs who get in early and establish themselves as the go-to provider for this segment will ride that wave to incredible heights.
Partnering with D3UC to Tap into the VSB Market
Aligning with a partner like D3UC can give MSPs the tools, resources, and expertise to seize this VSB opportunity. From white-label VoIP solutions to sales enablement and support, D3UC
empowers MSPs to plant their flag in this fertile ground and reap the rewards for years. The VSB market isn’t just a promising opportunity for MSPs – it’s a veritable goldmine. And with the clock ticking on the VoIP boom, now is the time to stake your claim. Will you be there to answer the call?
