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The Appification of Small Business


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A closer look at Intuit's report on the appification of small business.

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The Appification of Small Business

  1. 1. OPEN Why the Small Business Market is the Next Big Thing for Developers The Appification of Small Business
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 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. 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. 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.