Solid, sustaining organic growth is the bedrock source of growth for your company, and it means you’re doing the fundamentals right. It’s the gauge by which owners, employees, investors and others measure the true value of a company, and how well the management of a company is utilizing its resources.
It’s the best indicator of how well a company is positioned for the future.
For IT services companies, there are a few key principles we advocate for keeping your organic growth engine on fire, two of which are noted below:
The most fundamentally right thing to do is specialization. What this means is to own a segment of the market positioned at the intersection of a technical and a vertical market and drive your company to be the number 1 or 2 player in the market in which you serve.
Then build out a business model to fill this focused market. Sell into this market with a full set of service offerings. One of the benefits of specialization is that it allows you to embrace a Full Lifecycle Services Model for your clients. You can think of this as a three-legged stool, consisting of:
A) Advisory Service, the big picture strategy work
B) Technology Services, the nuts and bolts of application development and implementation
C) Maintenance and Support, in both infrastructure and applications
It’s the model that allows you to get deeper into your client’s business with a broader range of services that ingratiates you to the point that you generate more recurring revenue and make it tougher for a competitor to get any traction.
With these key principles firmly in place, you’ll find yourself better prepared to launch other organic growth strategies that may include opening new offices, getting into new service lines, sales optimization, mergers and acquisitions, and channel development.