Guest Column | January 26, 2012

Build Value With IT Business Credentials

Brian Sherman

By Brian Sherman, founder, Tech Success Communications

Is yours a recession-based business, able to maintain profitability or survive longer-term economic downturns? The topic was brought up by Karl Palachuk in his State of the Nation Address webinar earlier this week as he discussed some of the things solution roviders can do to strengthen their organization. Without a firm handle on the IT business metrics and processes (such as cash flow and automated systems), it's easy for MSPs and VARs to find themselves in financial trouble when the economic conditions worsen.

How can solution providers make sure that their company can weather virtually any storm? By following the best practices of their peers, mastering the fundamentals and perfecting the things that satisfy their clients. They automate frequently repeated processes and add new technicians only when needed (dictated by utilization rates and SLA needs). And when specific business accreditations are attained, it validates their client and business commitment—and gives them a strong promotional tool to attract new customers.

Use of the latest IT methodologies and business models-including managed services and the cloud—also allow solution providers to improve organizational efficiencies and recurring revenue. Both allow them to maintain or grow profitability since they can add new clients and services without significant increases in their payroll and capital costs. MSP and Channel Insider contributor Dave Sobel suggests that by focusing on a select portfolio of solutions, providers are better able to "achieve economies of scale, drive profitability, and increase customer satisfaction." Adhering to industry-best standards and continually refining a company's offerings are two key factors in building a recession-based business.