SB Informer
Friday, December 15, 2006; 05:23 AM
They may be small, but what they lack in size they make up for in
number. According to the American Small Business Administration, small
businesses and entrepreneurs account for 99.9 percent of the over 25.8
million businesses in the United States. Similarly, over the past ten
years, small businesses have created between 60 and 80 percent of new
jobs in the country. That is why an increasing number of corporate
giants, such as Microsoft and IBM are beginning to recognize the value
in marketing to their smaller counterparts.
In 2003, AMI-Partners reported that U.S. small business owners spent
just over $10 billion on off-the-shelf software. It also estimated that
by 2008, that figure would reach roughly $16.4 billion. As a result,
Microsoft and its competitors started a campaign to saturate the
market. And, this increasing interest in the small business market is
not limited to the software industry. Indeed, from technology to
insurance, larger companies are looking to the little guys to turn
their next profit.
While small businesses may represent a wealth of opportunities, they
also pose a number of unique challenges, the first of which is finding
them. According to a recent study by Small Business Trends, 83 percent
of vendors attract their small business customers through referrals –
twice the number that uses other methods such as direct mail and cold
calling. In the online world, 73 percent of vendors attract their small
business customers through search engine results.
Small business owners are considered by many to be the world’s toughest
market. “Entrepreneurs are a busy breed,” says Carmichael. “With a
company’s entire operation often resting on the shoulders of one or two
people, entrepreneurs have very limited time and resources. What they
want are real solutions to their problems.”
To this end, Carmichael suggests the importance of knowing your small
business customers. “A big mistake large firms often make is in
thinking that they understand their customers when they really don’t,”
he says. “You cannot assume that all businesses function in the same
way, with the same goals or processes. Put the textbooks away, because
small business habits are quite unique.”
In addition to understanding the client, Carmichael stresses the
necessity of both maintaining a consistent message in marketing to a
small business, as well as resisting the temptation to ‘sell’.
“Entrepreneurs are not your typical customer since they live and
breathe business,” he says. “They need to be approached in a respectful
way, with marketing that helps educate them instead of talk down to or
try to trick them. Keep it simple but keep it smart.”
According to GW Equity, 35 percent of entrepreneurs who have been
approached to sell their business in the past year declined because
they anticipated continued growth. Similarly, MasterCard International
found that 60 percent of small business owners think the outlook of
their business in the coming year is optimistic.
“Entrepreneurs are passionate people who are devoted to their company
and willing to do whatever it takes to make it succeed,” says
Carmichael. “As a marketer, if you can show entrepreneurs how you will
help make their dreams come true, you could be on your way to reaping
the shared benefits.”
Evan Carmichael is available for an interview. Please contact him at [email protected].
Evan Carmichael & Associates
www.evancarmichael.com
Evan is an entrepreneur and international speaker. At the age of 19, he
became an owner and Chief Operating Officer in Redasoft, a
biotechnology software company. The company quickly grew to over 300
organizations as clients, including NASA and Johnson & Johnson, in
30 countries. He started Evan Carmichael & Associates with the goal
to give entrepreneurs the inspiration to follow their passion and the
strategies they need to succeed. Evan has delivered over 100 keynote
presentations to entrepreneurs in North America, Europe, and Asia. He
has been interviewed by newspapers, radio stations, and television
stations including The Globe and Mail, CHUM FM, CityTV, Global TV, OMNI
TV, Enterprise, and the Toronto Sun. Evan's website, www.evancarmichael.com/, is the world's #1 website for small business motivation and strategies.
Other News by This Company Going Global: How Entrepreneurs are Taking their Business to New Borders - March 29, 2007 What's Hot, What's Not:: Top Three Trends for Small Business in 2007 - January 24, 2007 |