Staying to 1 city and testing different business models was one. Also instead of growing organic traffic and then testing could have been replaced with traffic acquired by ads in interest of time.
I would assume you are looking at a self serve model for small businesses? Many of them are traditional in nature and might not be so savvy of using a cloud based solution.
Do you have a assistant program where independent agents can go and sell to small businesses and get a commission from you?
We are also building solutions for small retailers and (in our case being in India) we are doing direct sales.