Don't Do's of running an IT business

[Product Team]

Do you guys have any tips on the don’t do's and what I need to stay away from when managing my own computer business? (received from a RangerMSP user)

Post your comments..

[smelvin]

Re: Don't Do's of running an IT business

Just to help this discussion...

Don't...

1. Compete on price, ultimately you will lose.
2. Sell yourself short, charge an appropriate rate for your time. Your customers won't appreciate what you do for them otherwise. Try and find out what others charge in your area, but don't be tempted to under cut unnecessarily.
3. Be afraid to let bad customers go. They can cause major problems for your business if you don't.

Do...

1. Communicate with your customers regularly. Even if they don't understand what exactly you do for them, they do like to know your working for them.
2. Pay your suppliers on time. A great relationship with a supplier can pay dividends, believe me.
3. Invest in your own systems, this can have a great impact on your bottom line.

Hope this helps

[jtfinley]

Re: Don't Do's of running an IT business

Great comments smelvin. Aside from those good points, one I always tell my guys, "Believe in the service you're offering." Believe what you're doing is better than the other guy. Aside from making sure you are doing great work, believe in it. A customer will spot someone who is not confident.

[natrat]

Re: Don't Do's of running an IT business

You have hit it right ont he head Smelvin.

I would also add manage your time, particularly if you have a family. Mine has recently expanded to three kids (from one) and you just can't do all the extra work you did after hours anymore, so if you aren't charging appropriately for your day work you just end up stressed and tired and with a poor qualityo f life.

[stsanford]

Re: Don't Do's of running an IT business

Excellent comments. I totally agree.
The night work too is a terrific point. My family has expanded to 2 kids, and while it's nice to get some work done while they're asleep, how long can one function on 3-4 hours of sleep?!?

One thing I will add:

Do not be afraid to say no, or to openly put family first. For example, "No, client A, I don't work weekends, weekends are for family." It may be a scary thing to say at first, but I have found every client respects your decision to value family time.


In terms of technology, I would also recommend that you branch out a little bit each year. for example, study, read, learn about a new topic so that you will be proficient in that area.

[paulNZ]

Re: Don't Do's of running an IT business

First thing to learn is that you or your team will NOT have all the answers or be experts in all areas but the areas that you do cover and the products you do support become a real expert ... so that will mean reading, using, learning.

Secondly keep up with what the trends are in the market place (that doesn't mean the latest gadget), learn enough about these trends to be able to hold an intelligent conversation; determine whether these are going to become 'part of your product/service set', if yes see point above, if not find someone locally who is the expert and forge a mutual relationship so that they can provide the expertise to your customers UNDER your Project MANAGEMENT.

[pops1000uk]

Re: Don't Do's of running an IT business

Dont employ family!! they expect things for nothing!

[FunctionOne]

Re: Don't Do's of running an IT business

DO:
Make a business plan

Create a proper Budget

Do stay focused on what you do well and ensure that remains so

Do include your team in the decision making process - especially around internal processes - this inclusion will make everyone feel valued and take ownership of their jobs.

Do know your limits and accept that this is why you have a team - they can pick-up where you cannot - you cannot do everything

DO document everything - and I mean eveything - not only your customers environments but your processes both internal and customer. This way any new hire or contractor can come in and execute even the simplest thing -like a new customer set-up - in exactly the same way as your seasoned techs - your customers will appreciate this and you'll know whether or not these new "hires" are a good fit. If they cannot follow directions...

DO Not:
Operate without any of the above :)
Do not lie to your customers about your size or capabilities even if you feel it is a white lie - "yeah, there are 11 of us" for example when there are only 4 techs and 3 support people and 4 contractors you use on occasion.

Do Not chase after the "bad money" - we all need to line the books - but chasing after customers who don't value your service, or for projects that will take you off task and away from the focus of the company for a significant chunk of time will ultimately harm your company and morale.

Push an issue off onto another vendor, partner or customer. Take ownership of your client issues - put yourself in their shoes and imagine how you would feel if you had to deal with that problem. Then resolve it according to your heart and your code of ethics.

[FunctionOne]

Re: Don't Do's of running an IT business

OH! And DO Track your time! This is critical - even non-billable work - you need to know where every hour of your day is going as much as possible.

[wtbservices]

Re: Don't Do's of running an IT business

I have just one piece of advice.
Copy smelvins post into Word.
Increase the font and make it bold.
Print it out and post it somewhere you will see it every day.

[smelvin]

Re: Don't Do's of running an IT business

Many thanks wtbservices.

[cullumtech]

Re: Don't Do's of running an IT business

I agree with wtbservics that smelvin's post is great. The main thing that hit home is "1. Compete on price, ultimately you will lose." I was told by a client who was helping me get started, the best piece of advice is, you do a service that people want and don't know how to do. That is worth something and you need to find out what it's worth to you in time and resources as well as stress and set your limit there. You can't compete with a business who's got tons of workers and pays them minimum wage to compete with those $20/hour jobs or so.

Sell them on your personality, your ability to communicate technical things in non-technical ways, your willingness to tackle each problem as if it were your own company. This is the thing that most of my client's comment often about me. Is that I take everything very seriously when it comes to their IT systems and how it affects them.

Don't be afraid to request non-billable client time to sit around and watch how the client's workflow goes, where the people are having issues and how you could help.

I sit around for maybe 30 minutes to an hour and can find things employee's at my clients are doing the long way, or improper way. I show them a simple trick or alternate and it not only saves them time but they are very grateful in you doing so.

Another great piece of advice that I live by is always leave your client smiling, laughing if possible. I've noticed the more I take time to make sure they are happy with the work and to verify their issues have been met, the quicker I get paid and with less effort to collect, often times I get asked if they want me to cut a check right then and there. The answer of course is always yes!

Nobody you hire is going to work as hard as you do, or as intimately with your company as you, just remember nothing can replace your drive for success and motivation to make your clients happy than you can. Keep up with monthly/quarterly stop-ins to see how things are going.

I did contract work for a client here, and it was amazing that the owner (who was the "lead technician") didn't even know any of his big clients. I was appalled that he didn't even go in to see who was spending ton's of money on his company. They didn't even know his name or face, and when he serviced them months later, they didn't remember who he was and just regarded him as a rude technician. I have since received that client as my full time client and treat them as they once were used to.