SMBTech Summit 2020 - The Rise and Importance of SMBTech

TL;DR

SMBTech matters because internet commerce and disruptive technology give small businesses simpler, cheaper ways to reach customers and compete with established companies. Brent Bellm explains how eBay, PayPal, Salesforce, and BigCommerce lowered barriers to selling, payments, and business software, while showing how platforms can begin with SMBs and expand into larger markets. Read on for his definition of disruption and BigCommerce’s growth strategy.

Transcript

all right brent i think we're live do you do you feel like you're walking out onto the set of jay leno uh yeah exactly where's the audience cheering for us well thanks for uh thanks for taking the time to spend a half hour with us we really appreciate it um you know as you know smb tech is a big focus for us as a firm and a big trend in the tech in... Read More

Key Insights

• 👨‍💼 The internet has leveled the playing field for small businesses, providing them with opportunities for global reach and distribution.
• 👨‍💼 Disruptive technology has enabled small companies to compete with larger, established businesses by offering advanced capabilities at an affordable price.
• 🪡 The COVID-19 pandemic has accelerated the adoption of e-commerce among SMBs, emphasizing the need for companies to have a robust online presence.
• 🤪 Going public has provided BigCommerce with increased credibility, visibility, and opportunities for growth.
• 🌍 The future of SMB tech and e-commerce lies in expanding globally, particularly in untapped markets like continental Europe, Eastern Europe, the Middle East, Africa, Latin America, and Asia.
• 😀 Being anti-fragile, rather than just resilient, is crucial for businesses to thrive in the face of challenges, as it allows them to become stronger under stress.
• 🤪 Going public as a CEO can offer significant advantages, such as increased credibility for customers and partners and heightened awareness of the company's actions and initiatives.
• 😤 The IPO has boosted the cultural morale of the team at BigCommerce, as they see the company's potential for growth and success.

Questions & Answers

Q: Why is SMBTech important for small businesses?

SMBTech gives small businesses access to capabilities that were previously difficult or expensive to obtain. Internet storefronts, online advertising, payment services, and SaaS products make it easier for them to reach customers and compete with established companies.

Q: How has the internet changed product-based sales for small businesses?

Before the internet, producers had to persuade retailers to stock, position, and display their products. Online, a small business can open its own store, sell throughout its home country, and potentially sell across borders without relying on traditional retail distribution.

Q: Why did the internet lead to more digital-native startups?

The internet lowered the barriers to launching a business, explaining a product, advertising it, and reaching buyers. This created opportunities both for existing small businesses and for new companies built from the beginning around a different product or story.

Q: How did eBay and PayPal make online selling easier?

eBay offered an easy, inexpensive way for people to begin selling, even without creating their own website. PayPal let merchants sign up quickly, accept credit cards immediately, and avoid the difficult process of obtaining a traditional bank merchant account.

Q: What does disruptive technology mean in the SMB market?

Bellm describes disruptive technology as technology that begins by serving the low end of the market, particularly SMBs that need less than incumbent products provide. It succeeds by being simpler, faster, cheaper, and easier, then adds functionality and moves into the mid-market or higher.

Q: Why is Salesforce an example of disruptive SMB technology?

Salesforce began as an SMB product and was used by Bellm’s earlier SaaS company when its quota-bearing sales force had about six people. It later served very large companies while retaining the low cost and ease of use that allow small businesses to start on it and grow.

Q: How has BigCommerce expanded beyond its SMB origins?

BigCommerce began by serving only SMBs and startups, then moved into the mid-market and enterprise segments. It now serves small companies as well as major businesses such as Procter & Gamble and many of its brands.

Q: How does BigCommerce position itself against Magento?

BigCommerce viewed Magento as the dominant mid-market platform but considered its open-source, on-premise software complex to manage. Bellm says Magento can require a dedicated group of software engineers and IT specialists, creating an opportunity for a less expensive approach.

Summary & Key Takeaways

• The internet has provided small businesses with the opportunity to sell products directly to consumers without the need for traditional distribution channels.

• The rise of digital native startups has been fueled by the accessibility and affordability of platforms like eBay and PayPal.

• Disruptive technology, such as Salesforce, has brought advanced capabilities to small companies and enabled their growth in the market.