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?