SMB Consultants

Small to medium sized businesses (SMB) represent a large, relatively untapped revenue source for large enterprises. However, it is a difficult and challenging market to pursue and most large companies engage the services of SMB Consultants to navigate the target market. Fortune 1000 and large companies have their own individual definitions of what the SMB market really is and there’s quite a big gap when you compare the definitions. In broad terms, companies think of the SMB channel as prospective customers having less than 250 employees. Others categorize the SMB channel as companies having less than 10-15 million in revenue. In spite of the difference of definitions, every large company views the SMB prospect as a growth possibility.



SMB consultants are typically former owners, ceo’s, and entrepreneurs that can help large companies get a better understanding of the target market. The challenge is typically more difficult because most large companies have preconceived notions of what a typical SMB customer should look like and perhaps even respond to. Thus, the first challenge for the SMB consulant is to help large companies grasp the fact that the SMB channel is really not a market, but rather numerous fragmented sub-markets. Instead of clumping everyone under one title called SMB, it’s best to organize these prospects by vertical markets. Not just a broad vertical market term, but rather very defined and specific terms. For example, with the SMB market you cannot simply call every retail prospect a "retailer". Within the group are restaurants, jewelry stores, dry cleaning companies, shoe repair stores, clothing boutiques, and others to name a few. The needs of each of these sub-markets are considerably different and SMB consultants will typically explain that you can not market the same product or service to the entire group and expect decent returns. Rather, each sub-market needs a product or service that is specifically crafted to address the pains and needs of the group. For example, restaurants may need toothpicks and dry cleaners may need branded hangers and pizza shops need carry out boxes. It is very rare to find a common product that will crossover to all of these sub markets and be relevant. A potential crossover product may be neon signage, but in general it is more difficult to find relevant crossover products than it is to create products specific to the vertical. Many large companies will just not retrofit their products this way. They feel that their products should be good enough for the smb prospect and this attitude often leads to sub par results or failure.



SMB consultants will point out that quantity and packaging also matters when marketing to the smb customer. Large non-SMB customers may buy a twenty-five thousand dollar product in bulk without hesitation. Even if the same product is relevant and applicable to the SMB market, it is vital that the product be examined and the quantity and packaging be adjusted to reflect a lower SMB friendly price point. With proper guidance from their smb consultant, large companies will see through this terrain and have better results in the process.