Low cost, easy to use Web apps have created a sea change in how small businesses operate. In case there is any lingering doubt, consider the following: Freshbooks.com, an online invoicing, time tracking and expense service has signed up over 1,000,000 users since launch in 2004. 37signals, a provider of online collaboration tools has signed up 3,000,000 users since 2004. They have 14 staff.
The beauty of the Web is that it opens up a distribution channel to millions of users globally that previously could not be reached because of product distribution hurdles and prohibitive customer acquisition costs. Add monthly billing to the mix, access from multiple locations including home, and a laser focus on user experience and you can see how the success has spread.
What’s really refreshing is that this success empowers smaller companies and startups to grow, creating a virtuous circle. It also allows smaller companies to expand and compete in international markets better. With so much attention on consumer Web 2.0 applications many commentators are missing out on the real change: smaller companies are poised to steal significant market share from the big global gorillas. Maybe the Internet hype in 1999 was just a decade too early.
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