ChannelTrends: Build Value with IT Business Credentials

Is yours a recession-based business, able to maintain profitability or survive longer-term economic downturns?  The topic was brought up by Karl Palachuk in his State of the Nation Address webinar earlier this week as he discussed some of the things solution providers can do to strengthen their organization. Without a firm handle on the IT business metrics and processes (such as cash flow and automated systems), it’s easy for MSPs and VARs to find themselves in financial trouble when the economic conditions worsen.

How can solution providers make sure that their company can weather virtually any storm? By following the best practices of their peers, mastering the fundamentals and perfecting the things that satisfy their clients. They automate frequently repeated processes and add new technicians only when needed (dictated by utilization rates and SLA needs). And when specific business accreditations are attained, it validates their client and business commitment—and gives them a strong promotional tool to attract new customers.

Use of the latest IT methodologies and business models—including managed services and the cloud—also allow solution providers to improve organizational efficiencies and recurring revenue. Both allow them to maintain or grow profitability since they can add new clients and services without significant increases in their payroll and capital costs. MSP and Channel Insider contributor Dave Sobel suggests that by focusing on a select portfolio of solutions, providers are better able to “achieve economies of scale, drive profitability, and increase customer satisfaction.” Adhering to industry-best standards and continually refining a company’s offerings are two key factors in building a recession-based business.

Prove It

The most recognized accreditation in the U.S. is that of the Better Business Bureau. When informed consumers see the BBB logo on a front door, it gives them a sense of security, knowing the company committed to provide superior service and guarantees. The accreditation standards are not difficult to meet, but the penalties for non-compliance give it “teeth” and assure customers that the business is truly trustworthy. That differentiator is valuable when promoting a business, especially when they properly leverage the accreditation logo and promotional materials.

Business accreditation is typically a blueprint to operational improvement. An effective program should include a roadmap or detailed list of the activities required to receive the designation. That’s a valuable resource for those of us who need an outline to ensure success, but it also forces owners and managers to make changes that improve the business. Going through an accreditation process ensures that the company is following best practices and forces the management team to address long delayed issues that may have lowered their productivity or profitability.

After the application has been completed and the organization receives its official endorsement, the business is typically better positioned both an operational and financial perspective. By realigning to industry standards and ensuring controls are in place, the company will be primed for growth—or more prepared to weather potential setbacks.

Accreditation for the IT Channel

The solution provider community has its own industry-specific programs that offer benefits specific to the IT industry. CompTIA offers two of the most recognized business accreditations designed exclusively for the IT channel, the Security Trustmark and MSP Partners Trustmark (with a third coming soon). Each gives skilled IT professionals the ability to increase their marketability, efficiency and productivity with a specific technology discipline. The true value of these programs comes from the accreditation process that applicants go through, measuring the applicant’s adherence to industry standards. In order to receive the designation, solution providers have to meet each Trustmark control and submit a list of business references—current clients who can vouch for the company’s adherence to the professional standards spelled out in the program.

Not all business accreditations are alike. For example, the CompTIA Security Trustmark offers two levels to meet the needs of a variety of solution providers. Those who undergo a comprehensive review (covers the organization’s security policies) and successfully complete the control survey receive an Associate Member designation. If those companies decide to take their validation to the next level (Verified), they can submit to an extensive third-party evaluation to ensure their business meets each of the Trustmark controls. Both Security Trustmarks offer a number of operational and marketing benefits, with the Verified designation serving as the “Gold Standard” for solution providers serious about protecting their clients’ data and networks—and strengthening their own proficiency and process efficiency.

MSP Partners Trustmark applicants follow a similar procedure, though an on-premise audit isn’t required. This industry standard business accreditation qualifies and differentiates solution providers who employ a managed services business model. It confirms that the organization meets certain business and technology fundamentals, assuring the company greater success through the use of best practices. The MSP Partners Trustmark is more than a logo; it’s assigned to those who demonstrate professionalism and offer quality service to their customers.

When solution providers need a differentiator in a competitive market, business accreditations can fulfill that need. An industry-recognized logo and marketing materials are great benefits, allowing the company to promote its advanced commitment to prospects and clients. But the greater value comes from the processes required to receive that “badge of honor.” Are you interested in making your business recession-proof? If so, consider signing up for a CompTIA Trustmark program or pursue other industry accreditations.

Brian Sherman is founder of Tech Success Communications, specializing in editorial content and consulting for the IT channel. His previous roles include chief editor at Business Solutions magazine and industry alliances director with Autotask. Contact Brian at [email protected].