• by Michael Shields , January 10, 2005

According to Publisher Geoffrey Dodge, Business Week spin-off Small Biz wasn't necessarily a result of planned expansion, but rather advertiser insistence.

"We had a number of large business customers coming to us looking to reach the small business customer," said Dodge. It seems that technology spending had really slowed among larger enterprises in the past few years, and these advertisers in particular needed another outlet to drive growth.

Which is where small businesses come in. When pooled together, they represent a valuable target. "The purchasing power collectively is enormous," said Dodge.

The way that Small Biz defines this group, these are not necessarily mom & pop stores, but rather companies with 300 or fewer employees--the average being around 50 employees. "What we call sophisticated small business," Dodge said. "These are P.R., legal, advertising firms that have an office, have technology needs. They are actively trying to grow their business."

According to Dodge, that group represents several million companies in the United States, one that big- name advertisers have flocked to. "If you look at our advertisers, it's a very blue chip list," he said. "You see names like Cisco, Microsoft, IBM buying ten pages." Add to that list FedEx Kinkos, Samsung, and Citibank.

To cater to these unique companies, Small Biz, which launched last summer, takes a service approach. For example, the most recent Fall issue includes several testimonial columns from real small business mangers, on topics such as how difficult it can be to find new talent and how to avoid having your company's technology products lost or stolen.

Also included is a profile of small business advocacy groups, and a cover story addressing financing and the various ways smaller companies can go about attracting investors short of a monster IPO. Regular sections take a look at startups and technology.

So far, Dodge says that the response has been better than expected. "Based on the letters to the editor, it really seems that we nailed it,"

One such letter would appear to illustrate the pent-up need for such a product: "I work for a midsized manufacturer.....we have approximately 150 employees and manufacture 90 percent of our products...Many of the articles in the Summer 2004 publication are relevant to our company. I took 13 Post-It notes and marked that many articles for my co-senior managers to read. --Lissa Martha of Converting Inc."

Of course, Small Biz has to contend with Fortune Small Business, which has enjoyed a substantial head start, launching several years ago. Fortune's magazine, a monthly, tends to be less service-focused, celebrating entrepreneurs' achievements instead.

"Of course, Time Inc. has a very high publishing standard," Dodge said. "We are using a different model. We're quarterly, so we are not reporting the news--we're more service-oriented."

Where Dodge thinks Small Biz can win is through leveraging McGraw-Hill's extensive database, and Business Week's track record. "This a very elusive group," he said. "They are doing so much on their own. Their companies are their lives. That fuels their need for this product."