Small Business is Big Business: How Selling to the Little Guy is Netting Large Profits

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.”

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Evan Carmichael is available for an interview. Please contact him at evan@evancarmichael.com.

Evan Carmichael & Associates
http://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, http://www.evancarmichael.com/, is the world's #1 website for small business motivation and strategies.

This release was published on openPR.