Start small business and discover potential customers
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September 12, 2025
CRM allows us to build an increasingly detailed customer database. For key clients, even small details like birthdays, interests, and the color of their socks are recorded. These customers are carefully categorized, labeled, and segmented. But what's the outcome? Before you finish setting up your system, those VIPs either change their socks or move to competitors. Why? Because your competitors are using the same tools, and those customers are also being targeted.
The foundation of CRM is the 80/20 rule, which suggests that 20% of customers generate 80% of value. However, when everyone focuses on that same 20%, its value diminishes. If there’s truth in this principle, then targeting new clients and large orders might be seen as “not worth the effort.â€
Building trust is often the biggest obstacle in sales. When a salesperson first approaches a new client, it’s not about product quality or price—it’s about establishing mutual confidence. Large clients tend to be risk-averse and resistant to new technologies, while smaller clients are more open to innovation. This was evident when Bill Gates initially tried to sell BASIC to IBM, but it wasn’t until the software succeeded elsewhere that IBM took notice.
Small clients can sometimes lead to big opportunities. The power of probability means that even if you only reach a few people, one of them might become a long-term partner. Companies like Bird, Kejian, and TCL have all found success by focusing on niche markets.
When dealing with new clients, it's wise to start small. A director may approve a $100,000 order, while a million-dollar deal could require multiple levels of approval. The more decision-makers involved, the more the trust weakens. Retail giants like Walmart and Target have strict trial-order policies, especially for small-scale purchases, because even a small order could grow into a massive contract.
Sometimes, small clients can bring unexpected profits. The 80/20 rule isn’t always accurate—many small clients can actually contribute significantly to overall revenue. Large clients may offer prestige and scale, but they don’t always guarantee high profits. Superstores selling Coca-Cola or Rejoice often struggle with margins due to the costs of managing big accounts.
This balance between sales and profit is like a seesaw. In China, companies with fewer than 100 employees make up 95% of the market and provide over half of all jobs. While big corporations dominate the headlines, it's often the SMEs that thrive. Mergers like HP and Compaq can create advantages, but they also increase pressure on smaller players.
Some may argue that small clients are unpredictable and costly to serve. It's true—40% of small businesses fail within the first year. But 20% of them are truly valuable. Experts like Bob Davis from McKinsey suggest asking three key questions before engaging with small clients: What type of customer brings real value? How can you attract them without spending too much? And how can you set pricing and distribution to ensure profitability?
Even small clients need to be selected based on profit, not just sales volume. Pizza Hut’s delivery fee policy is a good example—while it seems unfair, it's designed to manage costs. Similarly, many companies use sales targets to measure customer value, but this approach can miss out on high-profit clients.
Differentiating customers based on their profitability is essential for long-term growth. However, it requires a customer-centric accounting system and the ability to forecast future value. Technology can help here—using automated systems to handle pricing and communication makes it easier to serve diverse clients.
Mass marketing can also be effective. DuPont’s Leica campaign showed that consumers can influence manufacturers by seeking out certain products. If you don’t have a strong brand, focus on creating awareness and letting customers come to you.
Using technology to reduce sales costs is another smart move. Cisco and Dell both saw significant improvements by leveraging online platforms. But it's not just about building a website—understanding your customer’s preferences and choosing the right communication channels is key.
Ultimately, marketing is a game of smart choices. While many chase big deals, focusing on small businesses can uncover hidden opportunities. It's all about finding the right balance between strategy and execution.