37signals, the people who brought you Basecamp, Backpack and Ta-Da Lists suggest on thier blog that The largest neglected software market is for businesses with between 2 and 10 employees. They suggest that if you are looking to build a web application, that you look at this market segement as a target audience.
37signals creates great software, but seems to have become just as much of an authority on making money with software as they are technical and design wizards. Anyway their conclusion about the small business software market at least feels intuitively correct when you consider that small businesses have always been the lifeblood of North American economies.
