Our good friend Arlin Sorensen, “The Peer Guy” and leader of Heartland Technology Solutions and the HTG Peer Groups that we and so many others belong to and receive so much value from, has some sage advice for all of us.
I speak quite a bit about “Exit Strategy” in our first book, “The Guide to a Successful Managed Services Practice”, and how the accumulation of long-term, annuity-based Managed Services Agreements increase company valuation, and illustrate a few examples on how to reach your target valuation. In Arlin’s latest post, he details 6 items we all need to address before we execute our Exit Strategies, and I agree with each and every one of them. Read Arlin’s entire article here.
These are items that must be in place in the event of our or our business partners’ deaths, disability, divorce, retirement or other scenario that leaves someone else to deal with the business affairs. Arlin’s list covers the following:
· A Will
· A Living Will and Power of Medical Attorney
· Buy/Sell Agreements
· Exit Plan
· Execution Team
Arlin goes on to say “There are many other things you may need to consider – find an expert to help you – probably a CPA, lawyer, insurance broker and banker at a minimum. Build a team and sit them down together to help you identify the things you need to do. Make plans, document them, and share them with the people you are asking to execute on your behalf. Do it now – before you need it. It is way too late after something happens. Hopefully you will never need it but if you do, it will be the best time you have ever spent! ”
Again, sage advice from a true IT Business Mentor. Thanks, Arlin – for all you do.
I’ve just posted a timely blog on Intel’s vPro Expert Center regarding the current state of the US economy, where it’s heading and what we as Service Providers can do to grow our business during uncertain economic times with the right tools and technology, such as vPro, which lets us manage desktops and laptops when they’re out of band (in an "off" state), and best practices processes and procedures, such as those disseminated by MSP University. Here is the intro to that blog:
There has been a lot of chatter lately on the boards and newsgroups I monitor about the economy in 2008, and whether we can classify its current status as an economic downturn, mini-recession, recession, etc. It’s been generally accepted by noted economists that we are certainly experiencing an economic downturn, if measured by a significant decline in activity spread across the economy, and lasting longer than a few months. On the other hand, the technical indicator of a recession is defined as two consecutive quarters of negative economic growth as measured by our GDP.
We’ll need to wait for this quarter’s numbers to see if the US economy will indeed be categorized as in recession, based upon last quarter’s decline in growth, even though most economists agree we are heading that way, led by indicators such as the fall of the housing market to its lowest level since 1993, and consumer spending posting its smallest gain since 1991. The most telling news heralding the severity of our current economic climate is Sunday’s announcement of the buyout of Bear Stearns, one of the world’s largest and most venerable investment banks by JPMorgan, for the fire-sale price of only $2 a share.
So what does this economic downturn mean to us as service providers? Businesses traditionally are much more careful in their spending during times of economic uncertainty, and I.T. projects are normally among the first batch of initiatives to be placed on hold, as clients and prospects tighten their belts to weather the storm. It’s important for us to identify this reality and shape our internal processes, deliverables and their supporting technologies, message and value proposition accordingly so that we can take advantage of these opportunities.
To read the entire blog, click here.