Pursuit of Flaw – Part 1

IT Business, OwnWebNow
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First of all, apologies all around for the relative silence over the past few weeks. I realize that many on my own team, suppliers as well as customers look at this blog as an indication of what we are up to. Unfortunate side effect of that is that blog postings tend to remind people that I am alive which then launches an avalanche of emails and texts that interrupt some very important things we’ve been working on.

So to get us in shape for 2009 I’ve virtually faked my own death in a form of a “two week vacation” at the end of November. How some of you fell for it I’ll never understand, I worked on my honeymoon. The only sense in which that was a vacation was in the activity – I did not work on the operations of the company at all – but rather looking from the outside in making sure that we are on the right path, that the right problems get the priorities and that the right people get recognized for their talents and moved around to where their value is maximized.

That in itself is what makes companies great – and what makes management fun – constant change that helps serve more, better.

Changes in 2008

If you talk to any unsuccessful company – if they are even around anymore – the big note of 2008 seems to be the economy. This really is more of a sign of inexperience than anything else, I’ve lost the count of times that I’ve brought up the issues we currently face just to hear: “We will do what we always do, make slight adjustments in our approach as opportunities present themselves” – And how do you make a slight adjustment in direction when your line of credit gets cut in half and you managed your operations on the revolving line of credit? Bye-bye.

Then there is the flip side to this. Companies that prepared and aggressively pursued the strategy that is known to work have been in a state of perpetual growth pains. Fortunately or unfortunately (depending on how long it’s been since your last vacation) this is OWN – and many of our partners too. Every December brings the year to a slow close, allowing us to do massive maintenance, reorganize, check our performance, take breaks.

Not so much this year. In the first two weeks of December we’ve killed the revenue and profit #s for all of December of 2007. I’m willing to bet it is the same for our partners, the ability to reach a UK partner in December is nearly unheard of. The royal subjects tend to be the ones whose OOFs start at Thanksgiving letting us know that they’ll be out till January 10th. Not so much this year, everyone seems swamped and busy.

Going forward

The following are blog posts onto themselves but I’ll give you a brief summary of what is on my mind:

Strengthening alliances – in 2009 we’re set to extend our business alliances with MSPU, SecureMyCompany, ConnectWise, Autotask, Kaseya, LPI and SuperMicro. We are heading towards reducing the level of business we do with Microsoft, Dell, Cisco. People that were once competitors are now partners because the market demands it. People that are now suppliers are not going to be as significant because the demand isn’t there. I’m lazy, we respond to market demand (cash in hand) and not to the vapor of the supposed need..

Indirect service model – I’ve written extensively about our opportunities in the services business. At the present time, we are far too direct (be it in the support we extend to our partners, or our partners clients) and the future is in dumbing down the technology, not establishing technical barriers. Most of my current work is in reducing the overhead we have in answering the same @#%@#%#@% question over and over again.

Reducing distractions and interruptions – Gonna need some shields when this one comes out. As they say, it’s not personal, it’s just business.

Why break it if its working..

Because there is a long-term picture and then there is a short term strategy. What works right now is not going to work (well, at the same or higher profit margin) a year from now and if we’ve learned anything in 2008 it’s that the inability to change leads to the change for the worse.

We have a big December ahead of us, these last 3 weeks are going to be brutal. We will be using them to catch up, fix the outstanding problems that are still broken, cut the ties that are holding us back and celebrate a kickass 2008.

IT Book Bailout

Deals
2 Comments

My buddy Karl is trying to help you in a down economy. Spend $20, get $8 off:

http://smallbizthoughts.blogspot.com/2008/12/end-of-year-sale.html

If you haven’t looked through Karl’s stuff before let me offer you my advice. Get Karl’s Managed Services in a Month for $19.95 and Dave Sobel’s Building a Referral System for $9.99. That brings the total to under $30 and with the bailout cupon that’s $22. Set a weekend aside between now and new years and get your managed on.

People are struggling right now and one thing they definitely cannot afford is big IT bills. Put the info up there to a good use to establish a low cost MSP practice that can build referrals and offer just the basic monitoring and patching that you can do with even free tools. Then make the clients market it for you.

How do you compete in a recession?

IT Business
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Assert confidence.

Pick on those less fortunate and snag the solid clients who are looking for something more stable.

kickthemwhentheyaredown

As discussed before, businesses are built on relationships. People don’t head into relationships with companies that look like they won’t be around in a few months. Or ones that are cutting down their services. Or ones that are running knock-them-out-of-the-ball-park promotions to make numbers look good. Or the ones that seem to have a new temp person to talk to every time you contact them.

Business is about making money.

That is the one thing that has not changed with the times.

What has changed is the perception of the reality and the attitudes of solid companies and savvy business managers. They know that this is the time to strike deals. This is the time to bend over the service suppliers and dangle the carrot of opportunity in front of people who cannot see the stick or the rope. Do you want to know what they are thinking?

Hiring a consultant full time?

If s/he was any good, would she be looking for a job?

That is the reality.

The water is rising and the rats are running to the big pieces of wood.

If you run your marketing and solutions correctly can you imagine what you’ll be able to do once things start looking better?

Oh so it’s like that now?

OwnWebNow
3 Comments

When your parents name you Vladimir you get to grow up with a sense of humor when it comes to name butchering. But this one is actually quite amusing 😉

PIC-0048

Bone Web Now. I like the sound of that!

Chrome out of Beta!

Google
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Ok, this is perhaps the most exciting download since RTM released an iPhone download. Google has let the Google Chrome web browser out of beta. Go get it!

I was a little quick to judge the Google Chrome when it initially came out but since Shockey Monkey development (for the SM offline use) has been tied to Google’s Gears and this is by far the fastest and most stable web browser I’ve ever had. So if you dismissed it like I did, this might be a good time to take a second look at it.  

Getting ugly, eh?

IT Business
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Everywhere you look it seems its between despair and disaster. Between our service industry struggling as everyone tapers their euphoria for things that really aren’t making money or saving money you will see things get a lot uglier than they are now and a lot tougher than they are now if you aren’t doing the right thing. How do you know if you’re doing the right thing? You probably won’t like my answer to that question if it’s on your mind.

Off topic: Last week I got the pleasure of Schragging my buddy Dave, recommending that he get the highest yield credit card and max it out 😉 That was really only partially a joke but allow me to explain. Much of our economy works and trades on vapor. For example, financial institutions count “available money to lend” as those ridiculous credit card limits they offer. With the pullback that the financial industry is being forced into, you will shortly see those lofty limits shrink. And if you’ve run a sound business you likely have 0% APR for a very, very, very long time. Banks are just dying for people to start doing business so they can at least get commissions going. And in tough times, cash is always kind.

Point is, business is fantastic. If your business plan isn’t yielding the results you want because of the economy then you change your business plan. You don’t bang your head against the wall and do the same thing that is failing.

You get out there and ask some very simple questions:

What is it going to take to earn your business?

What would you be willing to pay for this?

And then you get to work.

It’s good to be back!

Vladville
1 Comment

I’ve been out for the past two weeks and today is my first full day back at work. Feel great, got tons of ideas and full of drive to close up 2008 on a high note and make sure our prep for 2009 is to make it the greatest year ever!

I know some of you have been waiting to speak to me, waiting on some paperwork, waiting on callbacks. I have been pretty good about email while out but you are unlikely to get a call back today. Just wanted to let you know in case you’re stalking this blog to check if I’m alive 😉

UF played for the SEC championship this weekend and I had the seats in the opponents section 😉  If you’ve met me you can probably fill in the blanks, needless to say it might take a day or two until I have regained my voice.

V… published!

Vladville
3 Comments

Ten pages, 3,779 words and no pictures later, the first Vladville “V…” newsletter has been sent to over 6,000 subscribers. Thank you for your attention and the feedback you choose to share with everyone. Please do me a favor and forward it around to your friends. I’ve committed to doing at least 12 of these over the next year as we sail down some troubled waters. Grab a paddle 😉

As for demographics, everyone is on it. I have CIOs, IT underlings, IT service providers, one man shops, vendors and even guys who didn’t want to admit they were vendors. I’m looking at you Bob!

If you are curious you can download the Word document here, but that will just get you my point of view. The real prize is the feedback that subscribers that provide feedback will get. Think of it as the quilt, I start the story and you get to complete it. I will publish the extended directors cut with the audience participation in approximately two weeks so start talking back! 🙂

What is the catch? Well, one of the sure-fire keys to failure is the inability to pay attention and see the big picture. I am fully aware that 90% of the people will not read what I had to say. I’m confident that 95% of those people will not provide any feedback. In a single cycle I will have at best 1/10th the audience. Those are the people I really want to talk to. Newsletter is designed to be long enough that most people who don’t actually run a business will in fact ignore it. The language is plain and pointy, so that the reactionary skimmers will not even bother to fill out the feedback.. and you know what, the catch is that this is not about them! Yes, that is the catch. Most people will look at this stuff and see it as being something that is either far over their head or lacking any actionable items or fill in the blank plans. This is perfect because it instantly eliminates people who don’t work, think and research the industry to be able to lead it! It doesn’t put up a monetary border where they could still get in if they put down a few bucks. It doesn’t treat business leaders like children by giving them homework and assignments. It simply asks people to think and speak their mind. Which, when you really think about it, is what separates winners from losers. People in this business fail because they can’t see the big picture, spend all their time in a fruitless pursuit of the perfect tool or process without ever making a decision because decisions void of direction, certainty and confidence is frightening. Just looking for the people that will be here 12 months from now.

Mercy Killing

IT Business
4 Comments

I am really starting to get sick at this “too big to fail” crap that I’ve been hearing as of late.

Nothing is too big to fail. And if something is likely to fail, what kind of a reasonable person would ever consider making an investment in it? From a particularly interesting article about the auto industry:

“The companies are resisting calls for bankruptcy, arguing that no one would buy a car from an automaker that may not survive the life of the vehicle.”

Bzzzt. No one should invest in a company that is unable to remain alive on it’s own.

That’s sort of the foundation for capitalism. When times are good, your ramp stuff up and collect the money. When times are bad, you downsize or move, you go for the areas of the market that are responsive to your message or build products for the markets that are unfulfilled. You don’t sit back and ask for a loan to help doing the same thing that you are doing right now – business as usual that does not generate revenues to meet your obligations.

You are never too big to fail. If you think you are then you should give your job to someone else.

V…

IT Business
1 Comment

Remember what I said the other day? You can read the actual introduction below or better yet sign up for the first one due out on Thursday:

vladvillenewsletter

I know many people out there are probably shaking their head in disbelief: why put forth the effort towards something that isn’t going to going to directly drive measurable revenue? The long and convoluted answer can be summarized under: there are several intangible qualities to business ownership and leadership that indirectly benefit both the business and its clients without exchanging money.

When you look and ask about what people find the most valuable in the business or in the IT community, the answer is always the personal interaction. The only problem is, 99% of the people aren’t going to talk to you. At least not honestly. In a remote case that you actually engage in an open conversation with someone out of the blue there are very good odds that A) You are a very attractive female and/or B) They are trying to sell you something. That 1% of C cases are actually going to change the way you think about your business.

Let’s see what happens when a newsletter isn’t built around a blatant slimy vendor whore ™. I’m damn proud to be one, don’t get me wrong, but for a change I’d like to hear what everyone else thinks.