On Monday, The Wall Street Journal ran an interesting article on home-based businesses (http://online.wsj.com/article/SB126246733831713647.html?mod=dist_smartbrief). The piece was really a how-to get started, what you need to think about in terms of setting up your home and how to be successful (draw boundaries between your home life and business life).
A couple of figures caught my attention, including:
- 52% of small businesses are home based businesses
- 93% of home based businesses do not have an employee
I pull these out, because it shows the size of the market as well as the dynamics. If you are going to target the home-based business market as part of our SMB outreach, you will need to understand that there are some unique needs and issues. First, because the business is based within the home there is an intense blurring between the individual's business and personal life. Sometimes this person acts and shops much more like a consumer than a small business meaning your channel should reflect this audience. Home businesses are much more likely to buy goods and services at retail stores such as WalMart, Staples, Office Depot, Office Max, etc and direct from a manufacturers web site. If you are currently selling your products to the SMB audience through an indirect channel, this will be an inefficient and ineffective way to reach the home business.
It is also important to have the right expectations when targeting this audience. The attraction of selling to small businesses is that there are several employees that have needs for software, PCs, etc while a home business is unlikely to have any employees.
When targeting home businesses make sure you speak their language. If your marketing materials are talking about growth and expansion, you likely will miss the mark. Not all businesses want to grow and often a home-based business is much more likely to be a life-style choice. This means that the individual wanted to work for themselves and is happy making a salary of X, but does not have greater aspirations. Or the home business could be a spouse who is trying to earn just a little extra income for the family. In either case, please make sure that your marketing efforts reflect the audience needes.
I would like to share one other tip and that is audience segmentation. Especially with home-based businesses this can be a crucial first step. I would encourage you to research the audience to discover which segment of people are most likely to benefit from your product and who will likely purchase your solution. You may find that you have a good target in home-based businesses that are woman-owned, product-centric and have a need for inventory management. This information can help you market buy industry, audience and even into a special zip code.
What do you think?
Tuesday, January 5, 2010
Saturday, January 2, 2010
Is Confidentiality Dead?
I am taking a departure from my usual musing about marketing to small business and instead interested in this topic of confidentiality. We are all familiar with the non-disclosure agreement and if you are in my industry you routinuely sign these document protecting information for 6 months, a year or several years.
Twice this week, I have seen bloggers or "people familiar with a company" post information about new products. First, there was the video post of the upcoming and expected announcement of the Nexus One Google phone on January 5. I was stunned to see that a blogger had posted a video review of the phone. Stunned, because if there is an event slated for Jan 5, I can not imagine that Google wanted the first review of the device to be an amateur video from outside of the United States. http://www.youtube.com/watch?v=vHGpTucczSo
Then just today I was reading on CNet's News.com that Kai-fu Lee, former Apple exec and most recently former President of Google China has provided details of the upcoming Apple tablet on his blog. He outlines dimensions, pricing and manufacturing volume as well as some of the features and capabilities of the device. Apparently, Lee cites sources close to Apple.
It is one thing that these pre-report by bloggers can impact the official public announcement and put companies in a position to manage leaks, but more importantly what do these postings mean to the company and any potential stock movement? Lee's post that Apple is prepared to manufacture 10m units could be a false indicator to the Street of Apple's expectations for the device. Is this an annual unit number? Quarter? Expectation for 2 years? As you can see, this could be quite a challenge.
One note here is that we do not know for certain if these were not strategic leaks. Being in the PR industry, on the surface they do not look like planned leaks, but instead of information obtained and distributed without permission from these organizations.
Where does all this lead us? My take is:
1) Companies in 2010 are going to wrestle more and more with this as more individuals become bloggers and have followers on twitter.
2) Companies are going to be put in a very challenging situation. As the world moves more to transparency and it is an expectation of Gen Y workers, organizations are going to be forced to holding confidential information even tighter to avoid any potential leaks. This surely will irritate employees.
3) The "media" continues to shift and influence is changing. As you see from Lee's post on Apple, he is now part of the story and positioned as an expert. This can work to a company's advantage or disadvantage.
The one thing I would encourage all companies to do is go back to the basics. We used to spend a lot of time talking about strategies if information was leaked about a new product or service. I think we all need to go back to our roots in communications and make sure we have scenario planning built into our programs for all major initiatives.
What's your take? Is confidentiality dead?
Twice this week, I have seen bloggers or "people familiar with a company" post information about new products. First, there was the video post of the upcoming and expected announcement of the Nexus One Google phone on January 5. I was stunned to see that a blogger had posted a video review of the phone. Stunned, because if there is an event slated for Jan 5, I can not imagine that Google wanted the first review of the device to be an amateur video from outside of the United States. http://www.youtube.com/watch?v=vHGpTucczSo
Then just today I was reading on CNet's News.com that Kai-fu Lee, former Apple exec and most recently former President of Google China has provided details of the upcoming Apple tablet on his blog. He outlines dimensions, pricing and manufacturing volume as well as some of the features and capabilities of the device. Apparently, Lee cites sources close to Apple.
It is one thing that these pre-report by bloggers can impact the official public announcement and put companies in a position to manage leaks, but more importantly what do these postings mean to the company and any potential stock movement? Lee's post that Apple is prepared to manufacture 10m units could be a false indicator to the Street of Apple's expectations for the device. Is this an annual unit number? Quarter? Expectation for 2 years? As you can see, this could be quite a challenge.
One note here is that we do not know for certain if these were not strategic leaks. Being in the PR industry, on the surface they do not look like planned leaks, but instead of information obtained and distributed without permission from these organizations.
Where does all this lead us? My take is:
1) Companies in 2010 are going to wrestle more and more with this as more individuals become bloggers and have followers on twitter.
2) Companies are going to be put in a very challenging situation. As the world moves more to transparency and it is an expectation of Gen Y workers, organizations are going to be forced to holding confidential information even tighter to avoid any potential leaks. This surely will irritate employees.
3) The "media" continues to shift and influence is changing. As you see from Lee's post on Apple, he is now part of the story and positioned as an expert. This can work to a company's advantage or disadvantage.
The one thing I would encourage all companies to do is go back to the basics. We used to spend a lot of time talking about strategies if information was leaked about a new product or service. I think we all need to go back to our roots in communications and make sure we have scenario planning built into our programs for all major initiatives.
What's your take? Is confidentiality dead?
Thursday, December 31, 2009
What is Your Marketing Resolution?
Marketing to small businesses can be tricky. We have been talking about that all year long. So, I ask you, what one thing will you do differently to reach this audience in a meaningful way?
Here's my resolution: Push harder to discover relevant and better methods to reach small business owners through social media tools/techniques on a hyper local level. It's possible, doable and will drive big results for companies in 2010.
What will you do?
Here's my resolution: Push harder to discover relevant and better methods to reach small business owners through social media tools/techniques on a hyper local level. It's possible, doable and will drive big results for companies in 2010.
What will you do?
Wednesday, December 30, 2009
Trying to Read SMBs
A story on Reuters today (http://www.reuters.com/article/idUSTRE5BS11P20091229?type=smallBusinessNews) stating that 20% of small businesses plan on hiring at least one full-time employee in 2010, a number that is up from 16% in 2009, reminded me how hard it is to get a read on the small business market. Some days we read about a survey that shows that SMBs confidence in the economy is up while other weeks it is down. We see that the amount of SMBs planning to hire is up, then we'll read another report showing that SMBs plan on laying of more individuals.
So, how do you read this as a marketer to the small business market? I would suggest that we first acknowledge that small business owners are also individuals. They go home at night and have the same concerns, fears and aspirations as other Americans. They are watching CNN or Fox Business, they are reading news reports in their local papers and online and they see their neighborhood friends lose their jobs or having challenges finding a new one. So it is common that the small business owner's point of view on the economy shifts as does consumer confidence.
As a market, I stress empathy. It is important to understand what these individuals are going through. If there is a lot of talk about additional government regulations that may impact the cost structure of their business, don't be surprised if their confidence is lower. Basically, as marketers, it is important to be aware of the entire environment.
So, back to the original story, will SMBs hire FTEs in 2010? My take: Yes, but look for this in the second half of the year. What does this mean for marketers? More opportunities for sales. Remember a new employee will need health insurance, a computer and software programs, training, a cell phone, perhaps a uniform, etc. There are all sorts of requirements for making the FTE a successful employee and that leads to sales opportunities for companies targeting this audience.
What do you think?
So, how do you read this as a marketer to the small business market? I would suggest that we first acknowledge that small business owners are also individuals. They go home at night and have the same concerns, fears and aspirations as other Americans. They are watching CNN or Fox Business, they are reading news reports in their local papers and online and they see their neighborhood friends lose their jobs or having challenges finding a new one. So it is common that the small business owner's point of view on the economy shifts as does consumer confidence.
As a market, I stress empathy. It is important to understand what these individuals are going through. If there is a lot of talk about additional government regulations that may impact the cost structure of their business, don't be surprised if their confidence is lower. Basically, as marketers, it is important to be aware of the entire environment.
So, back to the original story, will SMBs hire FTEs in 2010? My take: Yes, but look for this in the second half of the year. What does this mean for marketers? More opportunities for sales. Remember a new employee will need health insurance, a computer and software programs, training, a cell phone, perhaps a uniform, etc. There are all sorts of requirements for making the FTE a successful employee and that leads to sales opportunities for companies targeting this audience.
What do you think?
Tuesday, December 29, 2009
What Will Impact Marketing to SMBs in 2010?
Much like 2009, 2010 will have several things weighing heavily on small business owners that will make marketing to this audience challenging. Here is just three issues that will have small businesses distracted:
1) Finding customers. Each year, small businesses are concerned about finding customers and making sales. In 2010, this will continue to be a chief concern and with less customers, spending less, small businesses have fewer resources for purchasing goods, services and new technologies.
2) Navigating Washington. The health care bill is one issue while the minimum wage increase is another concern for small business owners. 2010 will continue to have small business owners trying to figure out new regulations and the impact/cost to their business. Basically, when small business owners believe there will be cost associated with regulation, it can have a paralyzing effect on their actions.
3) Access to capital. Even with the administration's appeal to large and community banks, lending still has been problematic and SBA loans still hard to come by. With tighter financial resources, it becomes harder to market services to small business owners.
This doesn't mean that small businesses with halt all purchases, but it does mean that the savvy marketer will understand and empathize with this audience. You will need to speak to this audience with full recognition of the challenging confronting this group.
What do you think?
1) Finding customers. Each year, small businesses are concerned about finding customers and making sales. In 2010, this will continue to be a chief concern and with less customers, spending less, small businesses have fewer resources for purchasing goods, services and new technologies.
2) Navigating Washington. The health care bill is one issue while the minimum wage increase is another concern for small business owners. 2010 will continue to have small business owners trying to figure out new regulations and the impact/cost to their business. Basically, when small business owners believe there will be cost associated with regulation, it can have a paralyzing effect on their actions.
3) Access to capital. Even with the administration's appeal to large and community banks, lending still has been problematic and SBA loans still hard to come by. With tighter financial resources, it becomes harder to market services to small business owners.
This doesn't mean that small businesses with halt all purchases, but it does mean that the savvy marketer will understand and empathize with this audience. You will need to speak to this audience with full recognition of the challenging confronting this group.
What do you think?
Monday, December 28, 2009
09 Predictions for Small Business
Just read a great article reviewing Jim Blasingame's (http://www.smallbusinessadvocate.com/) 09 predictions for small business. Jim was spot on in 13 of his 16 predictions covering everything from government policy to economic recovery. Read the piece for yourself at http://www.commercialappeal.com/news/2009/dec/28/small-business-advocate-most-predictions-for/.
I certainly am no Jim Blasingame, but will do my best to outline 5 predictions of my own for small business in 2010.
1) Small businesses will continue to struggle to get credit and financing in the first quarter of the year, even with the Adminstrations push with both big and community banks help small businesses.
2) Starting in Q2, small business spending on technologies will rebound. A lot of technology purchases were delayed last year and small businesses are looking for all ways to get every advantage for productivity, etc.
3) Small business owners will disporporationally oppose the democratic party in the mid-term elections citing that not enough was done to help main street businesses during this recession.
4) There will be an increase in M&A activities in 2010 which could benefit small companies looking to cash out. Companies with unique IP and large customer bases will be in the best position.
5) Small businesses will look more and more toward social media to marke their businesses on a local level. Directory services and newspaper advertising will become a much lower priority.
Agree? What are your predictions?
I certainly am no Jim Blasingame, but will do my best to outline 5 predictions of my own for small business in 2010.
1) Small businesses will continue to struggle to get credit and financing in the first quarter of the year, even with the Adminstrations push with both big and community banks help small businesses.
2) Starting in Q2, small business spending on technologies will rebound. A lot of technology purchases were delayed last year and small businesses are looking for all ways to get every advantage for productivity, etc.
3) Small business owners will disporporationally oppose the democratic party in the mid-term elections citing that not enough was done to help main street businesses during this recession.
4) There will be an increase in M&A activities in 2010 which could benefit small companies looking to cash out. Companies with unique IP and large customer bases will be in the best position.
5) Small businesses will look more and more toward social media to marke their businesses on a local level. Directory services and newspaper advertising will become a much lower priority.
Agree? What are your predictions?
Thursday, October 22, 2009
Obama & Small Biz
The Obama administration unveiled a series of efforts yesterday to help small businesses. The issue at hand is that small business owners are still having considerable challenges accessing credit and capital. The move from the Administration focuses on:
a) Increasing the maximum loan amounts from the SBA
b) Making it more advantageous for smaller and community banks to provide loans to small businesses
As unemployment rates in the country are nearing 10 percent, President Obama is realizing that limited access to credit for small businesses means fewer jobs to be created. Small businesses still drive job growth and right now these organizations are still not at a point to hire.
My take: There are those out there saying that the President is trying to sway Senator Olympia Snowe's vote on health care reform by outlining a small business plan that is nearly identical to one suggested by the Maine Senator. My take is that this is good for small business. Small business owners have been hit hard in this recession and it has taken its toll with job loss. This access to capital should spur new spending for talent as well as investments that are overdue. AMI Partners is predicting a slingshot effect in 2010 with small businesses spending on IT and other purchases.
a) Increasing the maximum loan amounts from the SBA
b) Making it more advantageous for smaller and community banks to provide loans to small businesses
As unemployment rates in the country are nearing 10 percent, President Obama is realizing that limited access to credit for small businesses means fewer jobs to be created. Small businesses still drive job growth and right now these organizations are still not at a point to hire.
My take: There are those out there saying that the President is trying to sway Senator Olympia Snowe's vote on health care reform by outlining a small business plan that is nearly identical to one suggested by the Maine Senator. My take is that this is good for small business. Small business owners have been hit hard in this recession and it has taken its toll with job loss. This access to capital should spur new spending for talent as well as investments that are overdue. AMI Partners is predicting a slingshot effect in 2010 with small businesses spending on IT and other purchases.
Subscribe to:
Posts (Atom)
Posts
