Almost 90% of the nearly 6 million businesses in the US employ 20 or fewer employees, and that number rises to almost 98% when you raise the worker threshold to 100 according to the latest Census statistics. They employ nearly 50% of all private-sector workers and create almost 2/3rds (63%) of the net new private-sector jobs in the country. It’s certainly no secret that small businesses are driving much of our economy today ̶ and based on the trends in self-employment, that situation is likely to continue for quite some time.
That’s something every solution provider should consider during National Small Business Week, which officially kicks off May 1st. It’s a great time to recognize your clients for all their contributions. That could mean dropping off treats or other gifts, sending a personal thank you card for their continued support, or offering a special promotion or something else that they would truly appreciate. Be creative and have some fun with it. Just remember this week is all about them.
After all, small business is where those in the channel really thrive. It’s where the most productive relationships exist for the majority of solution providers, those crucial connections that drive the solutions and IT services that make a difference for their respective organizations. Together you thrive.
Connections are Crucial
Why do small businesses rely so much on the channel? Consider the shift that’s been happening over the past few years, with more and more of the IT procurement decisions (or at least influencing) being pushed down to the user group or individual level. Marketing and sales may have their own line-of-business needs. The vehicle maintenance manager may have her own budget for technical solutions and support today. While IT may vet the vendors or providers and provide some level of advice and support, many businesses are realizing it’s better that those closest to the issues and opportunities make the ultimate decisions.
Most vendors simply can’t develop the same close relationships that a solution provider can, especially with so many end users involved today. Businesses need that proverbial “trusted advisor” more than ever. That company that can, if really needed, be available at 3 a.m. to bring a crucial server back online. Or someone to sit down face-to-face and discuss the owner’s current struggles and long-term goals. As any solution provider knows, you can’t serve your clients well without a clear understanding of their true needs. The SMB relies on the channel today more than ever.
In fact, 46% of small businesses look to outside IT firms when they need greater expertise and new options. That information, from the CompTIA Enabling SMBs with Technology study, also points out the financial limitations that strengthen the channel’s position in this space. With 2/3rds of small businesses spending less than $100,000 annually on technology (and 29%) of those companies investing $10,000 or less.
While solution providers may not get rich supporting the bottom part of that group, they can fare quite well if they have the right tools and systems in place. With the right mix of managed and cloud services, along with efficient implementation and support processes, most can still turn a fair profit with minimal effort. For extremely resourceful providers, even the bottom part of the SMB IT spend offers at least some promise (especially when those customers have solid scaling potential).
The true value proposition channel companies offer is that personalized level of support. It’s the “special sauce” a solution provider creates to meet the specific needs of his or her particular customers. Whether it be a one-off disaster recover solution for a retailer located in a frequent hurricane zone, or a social media management service for a community theater consortium in Silicon Valley, direct organizations rarely deliver that level of custom support.
Innovative ideas are what the SMB needs to compete, and channel professionals are uniquely qualified and positioned to deliver the solutions they need. While technology is accessible to more organizations today than ever before, small businesses often don’t have resources required to take full advantage of the opportunities it presents. Leveling the playing field between the SMB and its larger, deeper pocket competition is a perfect job for the solution provider community.
CompTIA Enables the SMB-focused Channel
Membership in an industry trade association can give your company an inside track on small business opportunities. For example, CompTIA offers a multitude of sales and marketing educational programs, as well as a number other resources specifically designed to help solution providers engage and secure more revenue from the SMB segment.
CompTIA Premier Members have access to the association’s entire catalog of training materials, business-enhancement tools and a number of security and IT-focused legal resources. One of the latest resources is CompTIA CyberSecure, a self-paced, online course your customers’ employees can use to increase IT security awareness and knowledge. CompTIA Premier members are eligible to receive 50 free training seats to use with clients or in their own businesses.
As anyone who has worked in the SMB community knows, building trust with entrepreneurs isn’t always easy. Financial investment decisions often take a substantial amount of time, and many take a cautious approach when considering bringing on new contractors. That’s where industry best practices come in. Solution providers who adopt the peer-developed CompTIA Channel Standards (the first is out with more specializations to follow) will surely build greater credibility with their SMB audience. That, in turn, could help close more substantial small business deals…in much less time.
While reflecting on your opportunities in the SMB space this week, be sure to check out all the ways a CompTIA Premier Membership can help you better serve those customers. You won’t regret the investment.
Brian Sherman is founder of Tech Success Communications, specializing in editorial content and consulting for the IT channel. His previous roles include chief editor at Business Solutions magazine and senior director of industry alliances with Autotask. Contact Brian at[email protected].
