BIZEQUITY
Challenge
A small-business bank faced several challenges:
- Need to increase customer acquisition in a competitive market.
- Desire to position themselves as a trusted resource for small business education.
- Overcoming general distrust in banks among small business owners.
- Finding an alternative to traditional marketing of business loans and accounts.
Goal
The project aimed to:
- Create a new subsidiary company under the parent bank.
- Drive small businesses to find value outside of traditional banking services.
- Collect business information to enable targeted acquisition efforts by the parent bank.
Approach
Based on market research, we found that 65.8% of small business owners didn’t know how to quantify or calculate the financial value they’ve created in their businesses. A small business, like a home, is often one of a person’s main assets. While it’s relatively easy to determine the value of a home, it is difficult and expensive for most business owners to evaluate the worth of their business.
Using this void in the market, BizEquity, a small business valuation site was created. It allowed users to search millions of estimated business valuations based on publicly available data and “rules of thumb” for different industries. Users were able to find valuations for their business and others like them, get helpful reports and charts on industry trends, communicate with industry experts, and find useful tools and articles on the blog.
The tagline created asked the simple question, “What’s your business worth?”
To generate excitement and use of the platform, a viral and strategic marketing plan was put into place to build a buzz. BizEquity launched at DEMO’s technology-focused fall conference in San Diego where the staff each dressed as different “types” of business owners (a doctor, a farmer, an artist, etc.) With almost every other conference attendee dressed in suits, the outfits generated a good deal of positive press mentions (including a piece in the Wall Street Journal). The site began drawing in users exponentially while also boasting the staff as thought leaders resulting in interviews with Forbes, Entrepreneur, and the New York Times.
While the valuation itself was free to business owners and allowed for the user data to be shared with the primary bank, generating revenue was the next step. After the user was able to establish their estimated valuation, a full verified report and valuation was also available for the user to fill out—at a cost. The primary bank, naturally, was the resource for the verified report.
Today, BizEquity boasts 4 patents based on the original algorithm for providing business valuations and database services.
Results
BizEquity’s innovative approach yielded significant outcomes:
Viral Growth: The platform experienced exponential user growth following its launch.
Media Coverage: Secured positive press mentions, including the Wall Street Journal.
Thought Leadership: Established the company as an authority in small business valuation.
Technological Innovation: Secured 4 patents based on the original valuation algorithm and database services.
Customer Acquisition: Provided the parent bank with valuable user data for targeted acquisition efforts.
Brand Positioning: Successfully positioned the parent bank as a go-to resource for small business education and valuation.
By creating a valuable tool that addressed a significant pain point for small business owners, BizEquity not only drove customer acquisition for its parent bank but also established itself as an innovative leader in the fintech space.
