During a lunch panel at Breakaway this afternoon, ArlinSorensen, CEO, Heartland Technology Solutions and CEO, HTG Peer Groupsinterviewed small, mid and enterprise level VARs who've been around the blockand back again. These successfulVARs shared what they did right along the way, what pitfalls they wish they'davoided, and how they're preparing their companies for economic recovery.
When Mickey Bland, Vice President Sales, Insight was askedhow the economy was impacting VARs generally, and Insight specifically, hecautiously pointed to some areas that seem to be performing better thanaverage:
“It continues to be very challenging despite news media claimsthat the recession is over. Istill see customers being extremely cautious and I think we’ll be seeing this cautiousnessfor the foreseeable future. In thepublic sector, the stimulus money is starting to flow now but in the commercialmarket, I’m seeing a move toward projects that have a short ROI, like convergenceprojects, teleconferencing and telepresence.” Bland’s advice for surviving the downturn was to stick withthe business models that have proven successful in the past. “Stay the course,” Bland said. “Keep a closewatch on client values and stay on top of trends. If you can do that now, and watch your pennies, you shouldbe well positioned for continued growth.”
Paul M. Cronin, Senior Vice President, Atrion urged VARs totake a more collaborative and holistic approach to solving clients’ problems. Atrionis a collaborative community where members share best practices and solutions.Cronin described the benefits of being part of such a community. “When you bring people together and letthem create something they can take back to their own organizations… it buildsa deeper bond. It spreads like a feverthat grows and grows and flows through organizations in a way that their clientscan feel.”
Cronin’s takeaway advice was not to go it alone. “Extend partnerships in your local areaor through strategic peer networks. That breeds opportunity because you can leverage each other’s strengthsand gain access to one another’s client base.”
Jeff Anderson, President, Bulletproof InfoTech focused onthe lessons he learned from his recent merger with another firm. Anderson’s decision to merge was drivenprimarily by his desire to grow the company to a size that required more than asingle executive. “We reached a plateau in the growth of the business because Iwas wearing five different hats. Ireally couldn’t manage a larger organization. We saw the merger as a way to expand our executive team andleverage our collective strengths.” Anderson gave a frank answer when asked if it was difficult to hand oversome control of the company. “I’m not sure I am over it. The challenge for me is trying to becomejust the president. I’m having tofight the tendency to micromanage even though I’m surrounded by talentedpeople.” Anderson explained thatthe growing pains associated with the merger taught him some valuable lessonsabout client relations. “Communication was key. We should have talked to our clients more about what wasgoing on with us. They neededconstant reassurance and we should have touched them with a call or a letterabout every two weeks.”
Anderson agreed with the other panelists on the importanceof the cloud. “There is a bigtrend toward moving business infrastructure off premises. SMBs are slower to adopt that but thatis where things are going. We areproactively taking that strategy clients and moving all our stuff off premisesto show that we are in a good position to take that to our clients.”
Collectively, the panelists urged VARs to communicate,collaborate and stay ahead of trends like cloud computing to provide customerscomplete, high value solutions – advice they are sure to put to good use.