Small Business Blog from Atlantic Canada

I am "CA" Atreya (PMP, MBA), the author of this blog. I help businesses in Atlantic Canada achieve their BHAG successfully. You may subscribe to this blog using a feed reader (RSS).

An entrepreneur posed a question to me, “Do you have any tips on targeting the small business market?” Indeed, how do you sell to small businesses? There is precious little public information on small businesses. Who are they? What are their needs? How do you identify them? Assuming you yourself are a small business or entrepreneur, here are some tips on how to market to small businesses.

1. What are you offering?
Have you defined in succinct clear terms your product/service offering? You must provide a very niche service to get the small business interested. Whatever you sell, you must believe (and in turn convince the small business leader) that you want their business to succeed. If you cannot muster that conviction in yourself, your service or product is not going to sell. Will they have the money to buy?

2. Have you segmented your target market?
Define your ideal customer. What are the characteristics of this customer? Identify parameters that will form the basis of comparison. This is crucial in helping you identify your target segment. Remember your service is niche. So are the services that they provide. Identify their common characteristics. If you have existing customers, it is great. You have a base to start from. If not, you just need to work a bit smarter. Segmenting your customers is crucial. It enables you to focus your marketing collateral for each. You cannot have a one-size-fits-all approach.

3. Where to go looking?
There are a number of ways to get to your prospects. Clearly word of mouth is the most effective means of getting qualified referrals. (See my experience here.) If your service offering is for local businesses there are a number of resources. Chamber of commerce should be your first stop. If possible, join and network even before you set up your business. There are a number of small business non-profit agencies - at least in North America. Call on them. Such agencies provide funding and technical advice to entrepreneurs. For example, there are the SBA funded agencies in the US and community futures organizations in Canada. They may help in referring you to your target segment. Look up the internet. A lot of small businesses at least have a website or some sort of online presence. Then there are local business directories online too.

4. What is your message?
Typically the decision maker in a small business is the owner. This individual is trying to be superman and trying to juggle and keep innumerable balls in the air. Why should you get his or her time? Follow the concept of KIS ” Keep it simple ” while designing your marketing collateral. Write in a language they will understand. Do not beat around the bush. Come straight to the point. They do not have the time. Your message must be one of the three: increase sales, save money and/or save time. Quantify and make sure your numbers stand if placed under a microscope.

5. What is your competition doing?
Have a look at your competitors’ website. (I am assuming you have identified your competition by now) Identify some of their clients. Talk to these clients - not for a sale but to gather competitive information. Done right, you should get a wealth of information. See how they are marketing themselves. Try to differentiate. Bottom line is to gain their trust and respect. You need to convince them you can deliver. Their business depends on it.

[Edit]: Check out Developing Sales Prospects in Social Settings by Anita Campbell. As the name suggests, social settings may be your best bet in developing quality sales leads.

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