The Fortune 5,000,000

August 5, 2005

Jason from Signal vs. Noise had a really stellar post a couple of weeks ago on what he calls "Side-Business Software"... defined as products that accomodate the growing market of:

the millions of side-businesses out there. Independent freelancers, people who work for their employer during the day and then run their own side business at night, passionate hobbyists that generate some income (and even those that don’t)."

Web-based, small teams (or solopreneurs) - the 1-10 person business market.

(Yes I'm slow on the uptake...I've been busy. And if you don't know these guys...you should. They designed BaseCamp, a web-based project management tool, and they also wrote Defensive Design for the Web, which sits here on my very own book shelf.

He offers a very compelling argument for this, and as a solopreneur who has absolutely no use for enterprise-level applications out there, I agree completely.

At least once a week, I'll run across something so perfect for my business, or for one of my clients, only to discover that it's at least $1000 and/or with a "feature set" that is hardly useful for someone not in a huge company.

The market is there...he sums it up with "build for the smallest of small companies and you’ll find a thirsty, neglected market waiting for you."

And I'm glad I waited to post on this because the comments are almost as valuable...really showing, at least to me, who gets it and who doesn't. Some people really took offense to what Jason wrote, and I just can't follow their logic. Perhaps they are jealous of the fact that 37signals has already made great inroads into that demographic?

Negativity aside, my favorite response was a very positive one from Dawn Rivers Baker of Microenterprise Journal:

For the record, the microbusiness market isn’t 2,000,000 businesses strong. According to the latest figures out of the SBA Office of Advocacy, it’s more than 20,000,000 businesses strong. It’s 95% of the firms in the country. Personally, I think it’s completely retarded that more companies are not chasing this market as hard as they can, just because it’s so gigantic.

Certainly something to think about, not only as a member of that group but as one who focuses my business on it as well.

Currently playing in iTunes: Teen Angst by Cracker