Selling to SMBs? Part One
While there is no one perfect way to define SMBs - and then size this group, we believe a good starting point is to use number of employees as the primary definition variable. Using this variable, we roughly define SMBs in the U.S. as businesses with from 1-999 employees. Anything larger would be considered 'enterprise' or 'corporate' accounts.
For part one of this post, let's focus on the Small Business segment- defined as from 1 - 99 employees. CEVOH has done extensive segmentation work to include other key variables as well including business type, product or service focus and of course spending levels. Would like to get your comments on how you define various segments within the SMB category.
As the chart above illustrates, the Small business segment is comprised of approx 5.8 million firms spending almost $7 Trillion a year. Lot's of dough. But the details are what are so important here. If your business is targeting Small business, its critical to do further segmentation and focus your resources on the prime targets.
We took a slightly deeper dive for this slide above and outlined the key spending areas for small business. We have trend data too, and much greater depth of knowledge than outlined in one slide. But if you study the slide above, you will see some interesting large buckets of spending.
Call us on 214-557-2727 if you would like more information on where and how Small business spending occurs.