medium.com – The small & medium business (SMB) segment is a very attractive one for many SaaS founders. In the US alone there were 5.6 million SMBs in 2011 (= businesses with less than 500 employees) with 90% of them having less than 20 employees (= 5 million). In France, out of a total of 3.1M businesses in 2011, 128k had between 10 and 250 employees and 3M had less than 10 employees. Same for Germany with more than 2M SMBs.
A very common strategy, when starting on the SMB segment, is to first focus on a niche, to dominate it and to expand. If the first phase of this strategy is relatively feasible for many SaaS products, it’s a whole different story when it comes to scale it.
Read more about the hardships of scaling a SaaS and how to overcome them at medium.com