Why we focus on SMB’s
Author: Sreenivas B. Asuri
Several years ago, I read the book, “Fortune at the bottom of the Pyramid” by CK Prahalad. I also had around the same time, the opportunity to read a Mckinsey report on “Cracking the SMB code”. Both essentially talked about the potential opportunity of working with the SMB sector. Unfortunately, all the large IT services companies I interacted with at that time, had strict guidelines to their sales teams to not engage with any company whose annual revenues were below $1B.
Now America is a country built on the back of small businesses, but as technology has started to impact every area of business, not just backend operations, but sales, accounting, compliance and even innovation, large companies have started to get even bigger and small businesses are getting edged out. This is true in practically all business sectors from banks, retailers, manufacturing, et cetera. This is essentially due to the fact that large corporations are able to invest substantially more dollars and resources in technology, while small companies cannot make the same level of investment in technology nor hire and retain top technology talent. Over time smaller companies are simply unable to compete.
Around 2016, Rminds started to focus on the SMB segment. And over the past several months, we have engaged with many local businesses. One family owned business wanted us to ‘clean up’ its IT and prepare the business for due diligence to exit the company. An insurance brokerage firm wanted us to build an application that would allow their agents to generate quotes from multiple insurance carriers from a single log-in. A community college hired us to develop an online platform for students and advisors to chart a 4 year degree plan and monitor progress.
A fast-growing logistics company engaged us to migrate their older web application to the cloud and enhance it to support their growth plans. I can list many more case studies, but what is important to know is that we continue to engage with all these customers; in some cases helping them innovate by leveraging technology and for others by simply helping ‘keep the lights on’. In essence, Rminds has become their IT department. This is a true win-win. Our customers get to leverage truly best in class technology resources and we get work with customers within our community that value us. This is exactly what we hoped for when we decided to focus on the SMB segment.