A Service Leadership Index Report

Surviving and Thriving in an SMB IT Recession

How Likely, How Bad, How to Survive and Thrive?
June 2008

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Recession, what recession? Many Solution Providers are reporting good results. Yet the underlying signs of weakness in the economy persist. And most Solution Providers know the “mild” recession of 2001 hit the IT sector hard.

Our Solution Provider clients want to know:

  • Is an SMB IT recession in progress or starting?
  • If so, how bad will it be?
  • What are the best strategies for surviving and even thriving during an SMB IT recession?

Indeed, the Service Leadership Index™ Quarterly Solution Provider Performance Report shows declining profits among even the top performing Solution Providers, as shown in the chart below.

In June 2008, Service Leadership performed an in-depth survey of Solution Providers across the United States and Canada.

Over 140 Solution Provider executives took an average of 25 minutes each to provide their responses to the 35 question survey.

The results were extraordinary:

  • On average, they reported they expected a solid 9.8% increase in revenue in 2008 over 2007, and a very bullish 13.1% increase in revenue on top of that in 2009.

But, when these same Solution Providers were asked how their SMB customers were actually behaving:

  • More than half said their customers were delaying orders, starting in the last two months.
  • More than a third reported that A/R is taking longer to collect.
  • More than 60% said sales activity and customer optimism were down compared to the same time last year.

When these Solution Provider executives were asked whether they felt a recession impacting SMB IT is occurring or would soon occur:

  • 42% said “No”, 42% said “Yes” and 16% said “Can’t tell”. Clearly, opinions are divided, with few sitting on the fence.
  • Nearly half of those Solution Providers who had never been through a recession before felt a recession was unlikely, but nearly two-thirds of those who had been through recessions before felt one was either likely or very likely.
  • When asked about the impact of an SMB recession, 43% said they felt the effects would be slight, but more (49%) disagreed, saying they felt that SMBs would stop growing or even decline.

What can you do to make an informed decision and put actionable plans in place to not just survive but to thrive during an SMB IT recession?

Buy the latest valuable report from Service Leadership:

Find out what your peer Solution Provider executives think, particularly those with:

  • Your business model,
  • Your services,
  • Your target customer profile,
  • Your target vertical markets,
  • In your geographic area.

In addition, get immediate, practical and actionable advice on what to do, to not just survive during an SMB recession but actually thrive and grow your business while others are struggling.

You’ll find your peer’s ratings of over 60 specific recession-mitigation strategies, including how to best:

  • Manage sales and adapt your marketing messages,
  • Manage customers and pricing,
  • Manage compensation and staffing,
  • Manage vendors and partners,
  • And much more…

The report will also tell you specifically what are bad strategies based on your peers’ previous experience.

In addition, Service Leadership’s own experienced management consultants tell you what we recommend as the best strategies, and what to stay away from, during an SMB recession.

In all, you’ll find over 40 pages of immediately actionable, in-depth advice on what works and what doesn’t, in ensuring your profitability in times of stress. Some of these actions are things you should be doing even if there is no downturn!

The Surviving and Thriving in an SMB IT Recession Report contains 147 pages of valuable insight into the minds of your peer Solution Provider executives, including specific analysis by:

  • Business model and primary solution offerings,
  • Customer size and vertical markets,
  • Geography (down to the census region and division level, plus individual metro data for most topics for Boston, Chicago, Dallas/Ft. Worth, DC/Baltimore, Houston, LA/Orange County, NY/Tri-State, Philadelphia, San Francisco Bay Area and Virginia).

This allows you to pinpoint the data relevant to your specific situation, to make the best and most informed decisions possible.

Below are just a few of the insights from the Surviving and Thriving in an SMB IT Recession Report.

  • Solution Providers’ expected revenue growth in 2008 and 2009; compare your plans and challenge your management team.

  • The expected impact on sales volume and pricing, for product, projects, T&M and Managed Services. Plan your sales and pricing strategy.

  • The ten worst strategies (as rated by your peers and critiqued or validated by Service Leadership’s veteran experts) for dealing with a recession. Learn from the past experience of others!

And, yes, the report also gives you the best strategies – over 40 pages of prioritized recommendations!

Purchase Surviving and Thriving in an SMB IT Recession Report now and save yourself critical time and mistakes, protect your business and position yourself to ensure growth even if the economy continues to weaken. Get the best advice for driving value in your business from Service Leadership before July 7, and get a 24% discount off the normal price!

By receiving this Service Leadership Index™ Report, you agree to these terms:

License Agreement
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Authorized Recipient
You are only an Authorized Recipient if the company which employs you has paid Service Leadership the license fee for the use of this report and your company is a Solution Provider and not a vendor, distributor or media company. You may not read or use this Report if you are not an Authorized Recipient.

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Authorized Recipients may use short quotations from this Report provided the following attribution is made: “Source: Service Leadership Index™”.

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This Report is for educational purposes only. Service Leadership makes no guarantees as to fitness for purpose. Authorized Recipient specifically indemnifies and holds harmless Service Leadership as to any consequences of its use.