07 May Getting Back to Business
As we’ve all started getting used to the “new normal,” we now have much to look forward to with the nation slowly opening up. As an IT Services Business owner, you should prepare for increased consolidation in the industry and what you can do to prepare your business for both organic and acquisitive growth.
1. Assess the damage:
After such an economic pause it’s highly likely that some of your clients won’t be around to service post the shelter in place orders. those that are around may have new financial constraints that could impact their ability to pay for your services. It’s critical that you closely manage your aging receivables and minimize the impact.
2. Prioritize your accounts and projects.
Upon returning to full operation your business may have a different looking client base and potentially a different competitive pool. Knowing which accounts to protect and which ones to manage closest will help ensure you are protecting your top and bottom line.
3. Right size your organization to meet your demand.
Unlike your clients, you yourself may be faced with excess capacity resulting from lost accounts or smaller billing forecasts. The most dangerous thing you could do is hang onto that expense and hope for the business comes back. Make the changes early and grow again when needed/the time is right. Be careful with the amount of cash your depleting and always try to keep your clients happy.
4. Consider an acquisition.
We are seeing a shift from a sellers market to a buyer market and now might be the right time to consider growing your business through acquisition. Buyers are ready to acquire. If you’re not thinking about an acquisition during these times, you are leaving growth (or an opportunity to retire) on the table.
If your business is getting to the point where it may need to be part of something bigger, Revenue Rocket is a source to help advise you through the murky waters of a merger or acquisition. We’re here to help!