4 Fast-Growing, Publicly Traded Companies That Focus on Small Businesses
In many cases, companies that go public are focused on big businesses. Or, if they used to cater to small businesses, they sell out and move wholly toward big business clients once they get larger. This, however, is not always the case. Here we will look at four public companies that are posting impressive gains and still focus on small and medium-sized businesses.
Small Business Rating System:
1. The worst
2. Not great for small businesses
3. Good solution for certain businesses
4. One of the top options in the industry for all business types
5. Holy bananas, if you don’t use this service you’re crazy
RingCentral -- Business phone services for the new internet age
FitSmallBusiness.com’s Rating: 4
RingCentral is one of the top VoIP providers in the industry. It is pretty much the highest-powered provider out there, with stacked features and a killer mobile app. However, competitors like Phone.com and Nextiva are a bit cheaper, which is the only reason that RingCentral was not rated a 5. If you have the spending power to use RingCentral, you will not find a better option.
What RingCentral Provides
RingCentral provides VoIP phone services to businesses, from small to large. Although RingCentral has moved some of its focus towards bigger businesses, it is still a solid VoIP option for medium-large small businesses. It has all the main business phone features, including conference calling, call queuing, follow me/find me call forwarding, and call recording. It also has additional internet-enabled features, such as sending/receiving online faxes, voice mail to email transcription, and more. RingCentral also has a killer mobile app that lets you run your business on the go, even seamlessly transitioning from wi-fi to cell coverage without interrupting your phone call. Here is a detailed review of RingCentral.
RingCentral’s Financial Trajectory
RingCentral went public in 2013, which is not too surprising, considering its financial trajectory. It has grown from an annual revenue of $78.88 million in 2011 to an impressive $219.89 million in 2014. As of 4/17/2015, RingCentral shares were going for around $16.26/share.
HubSpot - Online marketing suite for the new business age
FitSmallBusiness.com’s Rating: 4
When it comes to high-powered online marketing, HubSpot is a solid option. Although some think HubSpot is trying to contend with industry leader SalesForce, HubSpot insists that its target is new CRM/business marketing software users and small to middle-sized businesses instead of the big business clientele that SalesForce generally targets (HubSpot actually uses Salesforce.) With lots of solid online marketing features and a much more affordable cost than a service like SalesForce (less than half), HubSpot is one of the top lower-priced online marketing solutions out there and is poised to do well in the small to medium-sized business market they target.
What HubSpot Provides
With more and more sales moving to online sites, HubSpot provides the tools businesses need to more effectively build website traffic, generate leads, and market their business online. Businesses can create custom websites/landing pages for specific campaigns/products; monitor, track, and post on social media; determine best SEO terms to increase search traffic; send marketing emails; build customer lists; launch/track marketing campaigns; blog; and much more. Businesses can also add on a basic Customer Resource Management (CRM) Solution for free as well to help manage leads/customer lists. For a business that needs more than just email marketing but cannot quite afford the SalesForce price tag, HubSpot is a great option.
HubSpot’s Financial Trajectory
HubSpot’s Revenue has increased the last four years with leaps and bounds. In 2011, the company grossed $28.55 million in annual revenue. The company has not looked back since, increasing revenue every year to a solid $115.88 million in 2014. Going public in late 2014 was yet another step in the company’s growth trajectory, and it raised another $125 million as a result. As of 4/17/2015, HubSpot is trading for around $39.58/share.
On Deck Capital -- Short-term loans for businesses that need cash fast
FitSmallBusiness.com Rating: 3
If your business does not qualify for a traditional commercial loan and needs cash fast, then On Deck Capital is a good choice. They are friendly towards small businesses, even those that banks do not generally lend to, such as restaurants and auto-body shops. You can often get approved quickly and have your money within 1-7 days of your application. The downside is, your APR is killer, around 40-80%, which is why we only recommend On Deck Capital for short-term loans and give it a 3 rating overall. It is great for specific businesses that need cash fast, but not the best loan option for the average small business.
What On Deck Capital Provides
On Deck Capital is a loan provider that is known for its quick approval times, its ability to get money to the business owner fast (under a week), and its willingness to loan money to businesses that would not otherwise qualify (little collateral, high-risk industry, etc). On Deck will generally loan a business an equivalent of 10-15 percent of working capital, starting at $5,000 and going up to $250,000. To get approved, you need to have been in business at least a year, have an annual revenue of over $100,000, have a personal credit score above 500, and have no bankruptcy in the last two years. Certain businesses are ineligible, such as real estate brokers, child-care facilities, gyms, financial services, and car dealerships. (Find a link to the full list here.)
On Deck Capital’s Financial Trajectory
On Deck Capital’s financial trajectory has really soared the last several years and has the highest two year revenue growth of any of the companies in this article. In 2012, On Deck Capital had around $25.64 million in annual revenue. In just two years, the company had increased that number all the way up to a whopping $158.06 million. As of 4/17/2015, On Deck Capital Stocks are going for around $21.08/share.
Stamps.com -- Shipping savings for small business owners
FitSmallBusiness.com’s Rating: 3
If you are a business that ships a lot of products/sells online, then Stamps.com could save you some serious time and money. Instead of spending an hour driving down to the post office and standing in line to mail 10 packages, you can print off the labels from home, save on shipping, and have the packages picked up right at your door. Talk about convenient. Stamps.com would be a solid 4, but quite a few users complained about Stamps.com making it a big hassle for them to cancel their accounts, which could be a problem for some.
What Stamps.com Provides
Stamps.com provides USPS postage at discounted rates. Perhaps more importantly, it saves the business owner a lot of time. You can import orders directly from major e-commerce platforms such as Etsy, Amazon, and eBay. Also, you can schedule USPS package pickups, right from your Stamps.com page. Unlike USPS.com’s Click-N-Ship which only allows you to buy discounted postage for priority mail, Stamps.com has discounted postage on nearly all USPS postage types. Stamps.com will also calculate the most effective shipping option for you, which is a nice feature.
Stamps.com’s Financial Trajectory
Although Stamps.com’s overall revenue increase in the last 4 years has been the least of the 4 in this article, it has been steady. In 2011, the company grossed around $101.58 million in revenue. In 2014, that number rose to $147.27 million. As of 4/17/2015, Stamps.com stock was selling for around $65.88/share.
