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eBook: The Appification of Small Business

This document discusses the opportunity for developers in the small business cloud market. It notes that while currently 37% of US small businesses use cloud-based solutions, that number is expected to rise to 78% by 2020, representing a major opportunity. Small business owners spend significant time online managing their businesses, including tasks like communications, customer relationships, and accounting. The document highlights QuickBooks Online as the leading platform, and encourages developers to create apps that integrate with it to help small businesses run their operations more efficiently. It provides research findings on small business hardware/software use and willingness to spend on new solutions.

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OPEN
Why the Small Business Market is the Next Big Thing for Developers
The Appification
of Small Business
2
Small businesses are at the tipping
point of broad-based cloud adoption.
Currently, 37% of United States small
businesses are adapted to the cloud, but
an anticipated 78% will be fully cloud
operational by 2020.
For the 29 million U.S. small businesses and
the 600 million around the world hungry for
new solutions, this represents a massive
opportunity for developers to deliver new
cloud solutions that will make business more
efficient, successful, and prosperous.
This report is designed to provide developers
with core insights into the small business
cloud market opportunity.
29M
U.S. Small
Businesses
600M
Global Small
Businesses
37% Small
businesses currently
adapted to the cloud
A Massive Developer Opportunity
The Dawn of the Cloud-Powered
Small Business
78%
Small businesses
adapted to the
cloud in 2020
3
America’s small business owners are
already running significant portions of
their businesses online.
In fact, the average small business
owner is online for four hours a day.
What isn’t so obvious, however, is what
they’re doing when they’re online.
They aren’t checking out their friends’
Facebook feeds, watching YouTube
videos, or playing Candy Crush like
the rest of us.
Instead, small business owners spend
their online time running the nuts and
bolts of their businesses.
Top 5 Small Business Owners’ Online Tasks
The Center of the Small Business
Cloud is Financial Management
JUN
48% Communicating with
employees and business partners
58% Managing relationships
with existing customers
35% Advertising to build
company awareness
65% Conducting back-office
work, such as bookkeeping
and accounting
65% Generating invoices
and/or accepting payments
for their small businesses
4
QuickBooks Online is the
Small Business Apps Marketplace
Small business owners understand that the cloud
presents a profound opportunity to reimagine how they
run their businesses.
Much like consumers a decade ago making the switch
from flip-phones to smartphones, they understand that
the cloud offers more than the promise of an improved
product. The iPhone didn’t simply represent a better
version of a flip-phone; it completely changed what
a phone was used for.
The same holds true for the future of small business
software. This year, for the first tim ve ever, more small
businesses chose QuickBooks Online over the desktop.
They did so because they understand that it provides
much more than a better accounting application; it
represents a platform that will completely change the
way they run their operations.
By transforming QuickBooks from a product to a platform,
small businesses benefit from an ecosystem of products
and services that work seamlessly together. Developers
have a once-in-a-generation opportunity to solve this
massive, hungry market’s needs.
50%
growth rate*
QuickBooks Online Global Leadership
~1M Paid
Subscribers
*Per FY15 Quarterly Report
5
OPEN
The View from the
Small Business Cloud
To better help developers understand how to best
approach the small-business apps opportunity, we
commissioned Nielsen, a leading research firm, to
examine how small-business owners are currently
using software solutions and mobile apps.
The research also digs into the new types of solutions
small business owners most want to see developed,
gauging their willingness to pay for apps to help run
their businesses more efficiently.
6
What Hardware Do
Small Business Owners Use?
Nearly half (43%) of
small business owners
use a smartphone as
the primary device to
run their operations.
Virtually all small business owners (98%) use some sort of computer
to run their business, and most use multiple devices.
The Most Commonly Used Devices
Desktop
Computer
Laptop
Computer
Tablet
80%
60%
40%
20%
0%
67%
56%
19%

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eBook: The Appification of Small Business

  • 1. OPEN Why the Small Business Market is the Next Big Thing for Developers The Appification of Small Business
  • 2. 2 Small businesses are at the tipping point of broad-based cloud adoption. Currently, 37% of United States small businesses are adapted to the cloud, but an anticipated 78% will be fully cloud operational by 2020. For the 29 million U.S. small businesses and the 600 million around the world hungry for new solutions, this represents a massive opportunity for developers to deliver new cloud solutions that will make business more efficient, successful, and prosperous. This report is designed to provide developers with core insights into the small business cloud market opportunity. 29M U.S. Small Businesses 600M Global Small Businesses 37% Small businesses currently adapted to the cloud A Massive Developer Opportunity The Dawn of the Cloud-Powered Small Business 78% Small businesses adapted to the cloud in 2020
  • 3. 3 America’s small business owners are already running significant portions of their businesses online. In fact, the average small business owner is online for four hours a day. What isn’t so obvious, however, is what they’re doing when they’re online. They aren’t checking out their friends’ Facebook feeds, watching YouTube videos, or playing Candy Crush like the rest of us. Instead, small business owners spend their online time running the nuts and bolts of their businesses. Top 5 Small Business Owners’ Online Tasks The Center of the Small Business Cloud is Financial Management JUN 48% Communicating with employees and business partners 58% Managing relationships with existing customers 35% Advertising to build company awareness 65% Conducting back-office work, such as bookkeeping and accounting 65% Generating invoices and/or accepting payments for their small businesses
  • 4. 4 QuickBooks Online is the Small Business Apps Marketplace Small business owners understand that the cloud presents a profound opportunity to reimagine how they run their businesses. Much like consumers a decade ago making the switch from flip-phones to smartphones, they understand that the cloud offers more than the promise of an improved product. The iPhone didn’t simply represent a better version of a flip-phone; it completely changed what a phone was used for. The same holds true for the future of small business software. This year, for the first tim ve ever, more small businesses chose QuickBooks Online over the desktop. They did so because they understand that it provides much more than a better accounting application; it represents a platform that will completely change the way they run their operations. By transforming QuickBooks from a product to a platform, small businesses benefit from an ecosystem of products and services that work seamlessly together. Developers have a once-in-a-generation opportunity to solve this massive, hungry market’s needs. 50% growth rate* QuickBooks Online Global Leadership ~1M Paid Subscribers *Per FY15 Quarterly Report
  • 5. 5 OPEN The View from the Small Business Cloud To better help developers understand how to best approach the small-business apps opportunity, we commissioned Nielsen, a leading research firm, to examine how small-business owners are currently using software solutions and mobile apps. The research also digs into the new types of solutions small business owners most want to see developed, gauging their willingness to pay for apps to help run their businesses more efficiently.
  • 6. 6 What Hardware Do Small Business Owners Use? Nearly half (43%) of small business owners use a smartphone as the primary device to run their operations. Virtually all small business owners (98%) use some sort of computer to run their business, and most use multiple devices. The Most Commonly Used Devices Desktop Computer Laptop Computer Tablet 80% 60% 40% 20% 0% 67% 56% 19%
  • 7. 7 What Software Programs Do Small Business Owners Use? More than 9 in 10 (92%) small business owners say they use at least one software solution to run their business. Top Software Choices 48% 25% 19% 17% 15% 6% 5% Payments Marketing Customer Relationship Management Payroll Legal Human Resources Accounting Software Solution Accounting programs are the most widely used type of small business software, used by nearly half (48%) of small-businesses owners.
  • 8. 8 Are Small Businesses Ready to Adopt Mobile Apps? Half (50%) of small business owners already use at least one app to run their businesses. And we’re not talking about Gmail, Twitter, and Facebook. This refers specifically to mobile small business software applications, such as payments, accounting, and CRM solutions. Top Attributes That Small Business Owners Look for in Mobile Apps 43% Saves time and money by automating work they otherwise would have to do manually $ 40% Helps stay organized by better managing the back office (e.g., bookkeeping) 31% Tailor-made for their type of business 33% Helps maintain good relationships with existing customers 24% Helps generate sales leads and win new business 31% Works seamlessly with other software solutions they’re using 14% Provides deep insights into their business performance so they can make important decisions
  • 9. 9 What Makes for Good Small Business Software? 67% Help stay organized by better managing the back office (e.g., bookkeeping) 63% Save time and money by automating work they would otherwise have to do manually 48% Help maintain good relationships with existing customers App Solutions That Small Business Owners Want to See Created 34% Work seamlessly with other software solutions they are using 21% Help generate sales leads and win new business 21% Provide deep insights into their business performance 4 in 5 (81%) small business owners say it is important that the different software solutions they use work seamlessly together.
  • 10. 10 What Makes for Bad Small Business Software? 40% of small business owners cite at least one challenge with the software solutions they currently use. 19% Different solutions don’t work well together/data doesn’t sync 17% Not designed specifically for their type of business 14% Difficult to use and time-consuming Most Commonly Cited Pain Points Associated with Existing Small Business Software 8% Doesn’t work well (e.g., full of bugs) 6% Doesn’t help them advance the goals they have set out STOP
  • 11. 11 How Much Are Small Business Owners Willing to Spend? Small business owners already spend on average about $630 a year on software solutions. 85% of small-business executives are willing to invest more in small business software solutions over the next 5 years. Top Reasons Small Business Owners Would Spend Even More to Buy a New App 27% Help simplify their day-to-day operations 20% Solve a problem not currently solved by existing software 22% An immediate return on their investment 11% A solution that works with existing software they already have
  • 12. 12 Small Business Verbatim What New Types of Software Solutions Would Make it Easier for You to Run Your Business? A way to automate doing the “grunt” work Solutions that integrate and merge Combined accounting with sales leads and customer service Better invoice and reporting cost accounting Covers all aspects of the business Cloud-based software with no updating required More integration between my smartphone and computer More mobile apps Easier recording of client purchase historySeamlessly integrated productivity software Integrated, not having to keep switching and syncing Accounting software that syncs with other programs
  • 13. 13 Developers at the Core of the QuickBooks Online Ecosystem At Intuit, we believe the QuickBooks Online platform is only as powerful as the third-party apps that connect to it. That’s why the new developer.intuit.com was designed to enable developers to quickly and efficiently create game- changing applications for small businesses. Our goal is to create a partnership with developers to increase app adoption, so we can expand the QuickBooks Online platform and grow together. We want a partner ecosystem and developer community that are open to free discussion, willing to share best practices, and interested in where the future of the Intuit platform should go. The good news is that we’re already off to great start. Many developers are catching on to this rare opportunity to get in on the cutting edge of a brand new market opportunity. In fact, in the past year, developer activity on the QuickBooks Online platform has increased 10x. A year ago, we had about 1,000 active developers working on our platform. Today, we have more than 10,000. A year ago, there were 80 apps that worked with QuickBooks. Today, we have 796. 2 $
  • 14. 14 The QuickBooks Online Developer Experience Intuit Developer Vision: Every Small Business App on the QuickBooks Platform The Ultimate Small Business App Store From Idea to App: 4 Key Ingredients QuickBooks Online is a single, open platform for Intuit and third-party developers. • Global reach • One app store • “Right for me” apps • Developer experience • Rich and durable APIs • Developer productivity tools • Discovery and adoption
  • 15. 15 OPEN A Tipping Point in the Small Business Apps Marketplace Developers hold the key to unlocking the true potential of the small business cloud. And the QuickBooks Online platform provides the best route to get there. We have a developer experience and small business app store that provides best-in-class developer tools and access to the world’s largest market of cloud-based small businesses. More importantly, we are committed to working alongside developers to fulfill our mission of making QuickBooks Online the operating system behind small business success around the world. Come join us, reach further, and do amazing work.