Start small business and discover potential customers
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September 12, 2025
CRM enables us to build a more advanced and detailed customer information database. For key clients, even their birthdays, preferences, and even the color of their socks are recorded. They are carefully categorized, labeled, and managed—yet, before you finish setting up your system, those VIPs either change their socks or switch to competitors. Why? Because your rivals are using the same tools, and those customers are also being targeted.
The foundation of CRM lies in the 80/20 rule. The goal is to identify the 20% of customers who generate 80% of the value through analysis. However, when everyone focuses on that same 20%, its value gets diluted. If the 80/20 principle holds true for existing clients, then pursuing new customers and large orders might just be “not worth the effort.â€
Salespeople who focus on new clients know that the biggest challenge isn’t product quality or price—it’s trust. Large clients tend to be conservative and resistant to new technologies, while smaller ones are more open to trying something new. For example, if Bill Gates had tried to sell BASIC to IBM from the start, it might not have worked. But once BASIC succeeded on other platforms, it opened the door to IBM’s future development of DOS. Sometimes, throwing out a small opportunity can lead to big results.
When starting a relationship with a new client, you may need to lower your expectations. A director might approve a $100,000 order, while a million-dollar deal requires approval from multiple levels. The more decision-makers involved, the weaker the trust becomes. Companies like Walmart, Home Depot, and Target have strict trial order policies, often even stricter for small orders. A single order of 100 shirts could eventually turn into millions.
During the APEC meeting in Shanghai, the Tangzhuang costumes left a strong impression. However, a major silk factory refused a small, complex order, while two small companies in Zhejiang seized the chance. Now, they’ve doubled their business and mainly produce APEC fabrics.
Some may argue, “Even if I take small orders, I still get them.†But the point is to create opportunities. A local 4A agency once lost a million-dollar bid but asked if there were any Spring Festival posters they could design. It turned out to be a strategic move. Small gestures—like a pop-up ad, a coffee machine, or a fax paper—can build lasting relationships.
Small customers don’t always mean small profits. The 80/20 rule isn’t wrong, but 80% of profits aren’t necessarily from 20% of big clients. Large clients bring fame and scale, but often at the cost of profit. Ask Coca-Cola or Rejoice sellers in supermarkets—do they really make money? The costs of dealing with big retailers can eat into profits.
This is the seesaw of sales and profits. In China, 95% of companies have fewer than 100 employees, yet they provide over half of all jobs and contribute more than a third of the GNP. While big companies dominate the stage, it's the SMEs that truly thrive. Mergers like HP and Compaq may reduce costs, but they also give bigger players more power over suppliers.
Some people complain about small customers being scattered, unstable, and hard to manage. Yes, they are numerous. Many startups fail in the first year, and serving them can cost 4–5 times more than serving large clients. Not all small clients are valuable. Only 20% are truly meaningful. McKinsey’s Bob Davis suggests asking three questions: Which small customers are profitable? How can you attract them without high costs? And how to set pricing and sales strategies that benefit both sides?
Segmenting by profit, not just sales, is key. For example, Pizza Hut charges extra for delivery, but only because it’s not profitable otherwise. A 30-minute delivery for a 30-yuan meal would lose money. By adjusting pricing based on distance and order size, Pizza Hut can serve both nearby and faraway customers. This is the law of revenue reduction—dividing profit smartly.
You might think this is too complicated, but technology can help. Design a logic and let the system handle it. Customers may not fully understand, but they’ll likely accept it. Some people pay more for convenience, and that’s okay. The point is to differentiate between customers based on profit, not just sales volume.
Mass communication can help find small and medium customers, but it’s like finding a needle in a haystack. DuPont’s success with Lycra shows that instead of sending samples, you can market the product as representing comfort and style. When consumers look for Lycra, garment makers have no choice but to follow.
If you don’t have a leading brand, and everyone is fighting for the same space, that’s your chance. If you’re selling dry cleaning machines, tell consumers that “dry cleaning uses XX brand machines,†and wait for them to come to you.
Technology can reduce sales costs. Cisco’s early website was simple, but after seeing traffic, they transformed it into a transactional platform. Today, 15% of their business comes online. Dell’s website allowed small businesses to order directly, leading to 20% growth and half the sales cost.
But building a website isn’t enough. You need to tailor solutions for different customers. Face-to-face meetings work best for high-profit clients. Phone calls and 800 numbers suit traditional industries. SMS and internet are better for younger audiences. Technology should be customer-centric and effective.
Marketing is ultimately a game of differentiated choices. While many chase big deals, focusing on small businesses can reveal hidden opportunities.