How to Build a Modern Tech Stack for SMBs

TL;DR

Small businesses should adopt software that saves employees time, improves professionalism, and removes back-office work from their core responsibilities. Growing software providers can serve these companies through easy self-service products, then add sales assistance and stronger collaboration features as customers expand, invite more team members, and require support for distributed work.

Transcript

ryan mayer good to see you guys thanks for having us yeah thank you thank you for tuning in and uh i'm sorry i did not wear a black shirt today i should have this is actually green dark green this is coming off as black i guess because but um no you're not the only one okay awesome well thank you guys for being here as you know we l... Read More

Key Insights

• Modern SMB software is increasingly purchased because it saves time, improves professional presentation, and allows employees to concentrate on their core responsibilities instead of managing IT, telecommunications, human resources, or other back-office functions.
• Electric is an outsourced IT service delivered to small businesses through a subscription software model. Its founding premise is that traditional IT products primarily serve corporate departments, while smaller companies often lack both appropriate tools and dedicated internal IT staff.
• OpenPhone is an all-in-one business phone system created for small businesses and startups. It addresses the confusion caused when personal and work communications share one phone, while occupying the gap between consumer-oriented products and complex enterprise phone systems.
• SMB purchasing power is growing as businesses use more software applications and become increasingly comfortable buying technology online. Ryan says some small businesses were spending more on software than they had previously spent on office space, challenging the belief that software profits require enterprise customers.
• Distributed work increases the importance of software as the connective foundation of a company. When employees no longer gather in one office each day, missing tools and weak processes become apparent faster, especially in communication, collaboration, IT, and other operational functions.
• Employee experience influences software adoption because workers accustomed to modern tools may question outdated processes after joining another company. Software purchasing is therefore no longer limited to a centralized IT buyer, and individual employees can help introduce products into smaller organizations.
• Product-led growth works by making self-service adoption and team expansion part of the product experience. OpenPhone receives meaningful revenue expansion when customers invite additional people into their workspaces, so collaboration and team onboarding features directly support its growth model.
• Moving upmarket requires a second go-to-market motion alongside self-service acquisition. A growing software provider must incorporate feedback from both product-led users and sales-assisted prospects, because some organizations prefer to make purchasing decisions only after speaking with a representative.

Questions & Answers

Q: Why are small businesses adopting more software tools?

Small businesses are adopting more software because useful tools can save employees time, make the company appear more professional, and shift attention away from non-core responsibilities. Greater comfort with online purchasing also helps. Distributed work has made software especially important because it connects teams and exposes gaps in communication, IT, telecommunications, human resources, and other operational processes more quickly.

Q: What problem does Electric solve for small businesses?

Electric provides outsourced IT for small businesses as a subscription software offering. Ryan Denehy developed the idea after serving as the internal IT person at earlier startups and seeing that many available solutions were built for corporate IT departments. Electric instead targets companies that need technology support but do not have a dedicated internal IT organization to manage it.

Q: What problem does OpenPhone solve for small businesses?

OpenPhone gives small businesses and startups an all-in-one business phone system. Its founders observed contractors mixing personal and work communication on the same phone, creating a chaotic experience and leaving money on the table. The product aims to offer more business functionality than a consumer-oriented phone tool without the complexity associated with systems intended for larger enterprises.

Q: How did OpenPhone's target market change as it grew?

OpenPhone initially aimed to become the best phone system for very small businesses. After launch, the company received demand from larger companies and growing startups that also wanted a phone system employees could use easily every day. That response encouraged the team to improve the product for expanding organizations while continuing to support customers from incorporation through later stages of growth.

Q: How does remote work affect an SMB technology stack?

Remote and distributed work makes software the foundational glue connecting a company. When employees are scattered rather than reporting to one office, weaknesses in communication and operating processes become visible more quickly. OpenPhone responded by investing in collaboration features designed to keep team members aligned while using a phone system that is not tied to a physical desk or office location.

Q: How can employee expectations drive software adoption?

Employees can bring knowledge of modern software from one company to another and question why their new employer still follows older processes. This behavior broadens purchasing influence beyond a traditional head of IT. For software vendors, it supports a product-led approach in which accessible marketing, straightforward adoption, and a strong daily user experience can help products spread through an organization.

Q: Why can product-led growth work well for SMB software?

Product-led growth can work well because small businesses often have faster sales cycles and can adopt products without a vendor first approaching a senior IT leader. OpenPhone builds features that improve the experience when customers invite teammates into a workspace. Those invitations create account expansion, making collaboration, usability, and team growth important contributors to recurring revenue growth.

Q: When should an SMB software company add sales assistance?

A software company may need sales assistance when it starts serving larger or growing customers in addition to self-service small businesses. Some organizations feel more comfortable making a purchasing decision after speaking with a person. This creates two go-to-market motions, one driven by self-service product adoption and another supported by sales, with each channel providing different product and customer feedback.

Summary & Key Takeaways

• Ryan Denehy founded Electric to provide outsourced IT to small businesses through a subscription software offering. His earlier experience handling internal IT showed him that existing solutions were designed mainly for corporate IT departments, leaving companies without dedicated IT teams poorly served and creating an opportunity for a specialized service.

• Mahyar Raissi co-founded OpenPhone after observing that contractors depended heavily on phones for revenue and customer communication. Personal and business conversations were mixed together, creating disorder and missed opportunities. OpenPhone was positioned between consumer-oriented tools and complex enterprise systems as an accessible, collaborative business phone product for small and growing companies.

• The discussion connects growing SMB software adoption with younger digital-native buyers, distributed teams, employee expectations, and faster purchasing decisions. Product-led growth supports self-service adoption and team invitations, while expansion into larger customers introduces a sales-assisted motion. Product roadmaps must therefore accommodate both simple onboarding and increasingly sophisticated organizational needs.