08 Jul $10 Million Hurdle
Many firms struggle with change. Many IT Services Providers are stuck between $5-$10 million in revenue because they aren’t specialized, verticalized, and productized. At Revenue Rocket we call this our SVP model. This is not unique to IT services companies but almost any services business. Business owners need to leverage additional markets to break through these virtual sales ceilings.
3 methods of breaking through the $10M barriers;
Vertical Expansion: Consider looking at adjacent markets that have similar business needs. These markets often carry completely different competitors and technology solutions although the compelling need for IT services firms remains constant. Uptime, scale, supportability, deployment, and lifecycle management all play crucial roles for operators and they may be looking for a provider like you.
Geographic Expansion: Consider looking out of state or even country for additional market opportunity. While localization can be a barrier to entry, it’s often not as significant as problems you can solve. Language, regulations, and different competitors can add to this complexity but considering the economic climate and job market, there has never been a better time to recruit the gaps in your organization and offering.
Mergers and Acquisitions: While working with your competitors may not be the most appetizing thought but the value creation from putting two competing companies together can be staggering, especially during an economic downturn. The most accretive transactions are where you are able to leap into another vertical in the same field. Example; Healthcare and Telecom. Leveraging the domain experience from each and best in class IP from both sides will create additional competitive advantage and further distance yourself from the competition.