Small Business IT Spending Taking a Hit

Today, Charlene O'Hanlon authored an article for Channel Insider (visit: http://www.channelinsider.com/c/a/News/Small-Business-Taking-the-Biggest-Economic-Hit/?kc=CITCIEMNL02242009STR1) that focused on IT spending among small and mid-sized companies. According to Channel Insider's 2009 Market Pulse survey, IT spending among SMBs is down 28.3 percent. Essentially, companies are extending the life of their current technology solutions or redeploying older technologies to get through this economy.

So, what should value-added resellers and systems integrators targeting the SMB market be doing during this time of penny pinching? Here are some thoughts:

1) Look at growth segments? Really. Yes, there are still some growth segments. If you do not currently sell solutions to the government sector, you may wish to evaluate this audience.

2) Follow the stimulus package. I would encourage you all to find out where the stimulus money is going? What will be funded in the coming months/years? Green/alternative energy. Public works. Biotech. Research. Etc. If you do not target these sectors, look into it.

Remember, during these times it is as important to play offense as it is to "wait it out" and cut your costs.

What do you think?

Wearing New/Many Hats

Small business owners have always been required to wear many hats -- owner, cfo, hr, etc. Drew De Silver, business reporter for the Seattle Times, had an interesting story about how small business owners take on new responsibilities as they need to reduce staff overhead costs. Check out the article at: http://seattletimes.nwsource.com/html/businesstechnology/2008771277_bizfinance22.html

As these small business owners have even more on their plates, what things can you be doing to market to this group? Here are some tips to consider:

1) Increase productivity message. Small business owners (SBOs) will be willing to listen to how they can get more done in less time.

2) Has to be easy. Now is not the time to be selling products or services that require an investment in time, resources or energy. SBOs want a solution that is seamless and not complicated. If you have a solution that requires a lot of commitment, you'll have to strongly communicate that the end benefit will be worth the pain.

3) Little cost. Right now, SBOs are having a challenging time getting an increase in their line of credit or even a small business loan. Therefore, future returns on their investment will be a harder sell than a solution that is less costly up front.

What are you seeing that is working today? Give us your views.

What have you been doing?

How have companies been marketing to small business owners during this recession? Well, companies have seemed to fall into a few categories, including:

1) Some marketers have disappeared. Even though times are tough, it is not wise to stop all marketing efforts. Small business owners may have slowed their purchasing of goods, services, technologies, etc, but they will come back.

2) Nothing different. In this category we are seeing some financial institutions are treating this economy as business as usual, but just reducing their external marketing efforts. This is an interesting tactic and one that may be a bit foolish. As a marketer, it is important to demonstate that you know what your audience is going through.

3) We'll help you through it. This approach has strong merit as long as you can deliver your marketing campaign/strategies through genuine concern and interest. Some companies have changed messaging, others reduced prices and some have come up with specific programs to navigate these trying times.

The smart companies will balance the need for short term profits with building long term market share.

Implementing a Local Market Campaign -- Start in NC

Some many marketers targeting small business owners are taking a local or hyper-local approach to their campaigns. Just a few years ago, marketers were taking a less sophisticated approach by dividing small businesses by employee size. The thought was that the size of the business would dictate purchasing habits for products and solutions from technology to insurance.

Since that time, marketers have become more intensely focused on understanding small business owners and what motivates them. They want to know what organizations they below to, where they network, where they shop, the type of entertainment they seek and so much more. This has driven a lot of marketers to spend more time in the small business owner's backyard.

Based on a recent survey from bizjournals (http://www.bizjournals.com/), marketers may find gold in North Carolina. Two cities, Raleigh and Charlotte, ranked #1 and #2 in the bizjournals survey of best place for small business. These cities have seen significant growth in population, small business ownership and general employment.

During a challenging economy, knowing where to market is critical to drive best ROI in the shortest period of time possible. Many marketers tend to pick the top populated cities like NY, Chicago and LA when crafting local campaigns. Certainly, these cities deserve considerable evaluation, but also look beyond the large locations and you may just find some gems like those in the South.

What local campaigns have you implemented recently? What are your best practices?

Keep Marketing During Tough Times

There was a great article in the NYTs yesterday that talked a bit about keeping your visibility consistent even during tough times. The premise of the piece by Paul Brown (http://www.nytimes.com/2009/02/03/business/smallbusiness/03toolkit.html?_r=1&ref=smallbusiness) is that the economic downturn will not last forever. When we come out of this period of time, there will be pent up demand for goods and services. He discusses the importance of making sure that your brand and products are top of mind when consumer start spending again to take full advantage of the recovery period.

What do you think?

Did Marketers Forget Small Business Owners during the Big Game?

I love watching the big game. I am crazy about professional football and love that the NFL doesn't leave naming a champion to some convoluted system like is done in the college game. And, of course, I look forward to all of the advertising breaks inbetween all of the on-field action.

Did you know that 46% of small business owners describe themselves as a fan of the National Football League? That is nearly 1 out of every 2 business owners. Now, that 46% also tracks to the general population at large, so there may not be a huge insight just yet.

But with all of this interest in football, I counted just a couple of commercials targeted specifically to business. Yes, there were those ads by the job search companies (Monster.com and Careerbuilder) but that was targeting you the worker not the small business owner. There was the advertisement just before kick-off by Avon encouraging people to take control of their life and own their business.

I didn't see a lot of advertisements specifically targeted to the small business owner. What this a missed opportunity? I would have thought we would have seen something from marketers of computers, shipping services, banking services, loans.

So, what do you think???

This week starts off great wtih the Small Business Summit 2009 on Tues, Feb 3 in New York. There is an all-star cast of presenters and speakers with content aligned with how small business owners can navigate through these tough economic times. From managing customers to sales tactics this conference covers a lot of ground. For more information, please visit:
http://www.smallbiztechsummit.com/2009/agenda.html