My first instinct is to ask, what are the keys to capturing this market? But, you already pointed out that it is lazy to consider SMB “a market.” SMB is a descriptor, comprising many different businesses with a wide range of scale.

Perhaps the scariest part is the possibility that the acquisition cost of an SMB customer can be comparable to that of an enterprise customer — so a higher volume of smaller deals wouldn't be very efficient.

What are some unique attributes of these types of businesses that an entrepreneur can leverage?

–> They may not be as numbers-oriented. A problem that causes almost physical pain — to which you can offer a solution — is far more persuasive than a spreadsheet.

–> Due to smaller size and flatter organization, don't be shy to ask to deal with someone higher in the company than you would expect to get at an enterprise.

–> A corollary to that: relationships matter even more. But everyone already knows relationships are important, right?

What other points of leverage can we think of?

The last point is the key one. SMB is not a market. Web designers are. Architects are. Its all about segmentation. I work with many startups that have had great success targeting segments within SMB. I think they are great markets. And I do believe that when well served businesses as small as one person provide word of mouth leverage. Freshbooks is a perfect example of that

One benefit of targeting SMBs is that it allows you to have a greater effect more quickly. Big businesses tend to move more slowly. We work with small businesses at our company, and it allows us to really make an impact because there are fewer levels of bureaucracy.

Great points! There is definitely a premise that Targeting SMB=More Opportunity, but as you point out, closing a project is often just as intense as with a large business and the work load is pretty similar; the only thing smaller is often times the pay…

I think another distinction to make is how you capture whatever SMB segment you're going after. I'm thinking here it terms of Push vs Pull marketing.

As Ben mentions, SMBs tend to be overwhelmed. They don't appreciate sales reps calling, emailing, or dropping by. (Who does?!) But when they prioritize solving a specific problem, and then jump onto the web to find a solution to that problem, they are ready to hear your value proposition. So put yourself there.

ya right i have my example , i am a freelanc web designer and i am also targeting small and medium size business owners .. because in thsi my and the opposite person both are happy … if i run after big business owners they will not appriciate our efforts as what the small and medium business owners will do . I am happy with what i earn ..

Thanks to great content.

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