Here’s Why There is a Huge Untapped Market for ‘Really Small Business’ Needs

 
 
 

Mark Goins, Partner at Morgenthaler Ventures, tells TechCrunch that there is a major opportunity available for marketing broad solutions to “RSBs,” or “really small businesses” of less than five people. He notes that RSBs are forming very quickly in the present startup climate, but the enterprise tools are either too complicated for RSBs. 

“As a marketer, [RSBs] are pretty easy to find,” Goins says. “You can identify RSB owners by their search terms…they are increasingly available as targets for new products.”

He gives the example of eBay and Etsy-based small businesses, which marketers can reach through partnerships with those sites.

One of his personal favorite investments, Practice Fusion, markets electronic medical record systems to doctor’s offices — typically small, privately owned businesses.

“You want to build tools that anybody can use….as broadly as possible, with little need to customize because [RSB’s] needs are very simple,” Goins says.

Goins also notes that there is currently an ‘oversupply of early-stage capital,’ meaning less opportunities for angel investors, and a tendency for value inflation by incubators and accelerators.

“Because of all this supply of capital, a large number of entrepreneurs are getting higher valuation. As an angel investor, those returns are really less available. It’s better for the entrepreneurs if they can get started, unless they hit a plateau,” Goins says.