If it’s starting to look like the odds of selling hosted PBX (private branch exchange) service are approaching zero — because everyone who was going to get it already has it — then there’s hope for you today. There’s one sector of the market that’s been chronically overlooked by the hosted PBX market, and that’s the small business field. If you haven’t been selling to businesses with fewer than 10 employees, you’ve missed out on a major opportunity.
Why Isn’t Anyone Selling Hosted PBX to Small Business?
The reasons to avoid selling hosted PBX to small businesses are valid on the surface.
Too diffuse. Large, 500-plus seat, businesses mean large user counts and large fees because most providers charge per user per month. Pursuing small businesses, on the other hand, means selling to a large number of clients with very little payoff per person.
Too likely to shut down. A commonly known statistic is that nine out of 10 small businesses fail in their first three years. Why sell to a business that has a good chance of closing soon?
What You Should Know About Selling Hosted PBX to Small Businesses
Yet beyond the surface reasons, there are plenty of reasons to target the small business.
Fast sales. The average sale for a fewer-than-10-employee business takes about two weeks. Most large businesses take several months.
Less competition. This is a large and underserved market; the field is wide open as most vendors are actively targeting the enterprise-level customer.
Volume sales. The 2010 Census says there were 27.9 million small businesses registered in the United States, as compared to 18,500 companies of 500 employees or more. You may not make as much selling to the small businesses, but you can make it up in volume.
A killer test market. The large numbers of small businesses make it great for market research and dealer training. It also helps with analytics, which requires a large amount of data to fully function.
Simpler sales. Small businesses aren’t looking for the every-option package. The simplest package is most likely to sell here, and that means less administration cost and after-sales service.
How to Get Help Selling Hosted PBX to Small Business
There’s a big market out there in small business, and selling hosted PBX to these entities is relatively untrammeled ground. When you’re ready to make a play for this undiscovered country, drop us a line at Innovative Business Solutions. Our network of telecom agents, managed service providers (MSPs), and value-added resellers (VARs) will help make sure you have the material to offer this massive market of tiny players. Just get in touch with us to get the ball rolling.