A few notes from my talk this morning with business owners running technology reseller companies.
VAR business owners can not count on building their business and selling it for multiples of revenue – maybe ten years ago, but not today. So what’s left? Build a highly profitable business by applying some basic principles of success:
- Differentiation is key – companies that think their value is in designing, implementing, and managing networks are going to be in trouble. Differentiation comes with things that product business transformation and risk mitigation.
- Managed services is a source a financial stability, but not a differentiating factor. Sell strategic solutions as named above and drive through to managed services to counter economic pressures.
- Learn to create business through strategies such as securing data. To do this you have to have ways of demonstrating the need for security. The need is there, but can you effectively demonstrate it?
- Become a consultant to the businesses your work with. You can’t afford to be looked at as a supplier – this leads to price negotiations. Study books such as Michael Gerber’s Emyth to become more knowledagbe on the subject of small business. Good to Great might give you a start on mid and larger companies.