Dispatch From the Head Sherpa

The Economy is coming around.

Everyone I meet asks, “How do you see the economy? How are your clients doing?”

In general, our clients are holding their own by carefully watching expenses. I would split my clients into the following categories:

  • 1/3rd are outpacing the market and continue to invest in technology for strategic advantage
  • 1/3rd continue to implement planned upgrades and are keeping current with technology for tactical reasons
  • 1/3rd are in a holding pattern and are neither increasing or decreasing their IT spending habits

I was at an industry conference and peer group meeting in Orlando the week before last. The reports from the conference and my peers were upbeat. Companies solely focused on hardware sales were having mixed results depending on industry. Service oriented companies like MySherpa®, are doing well as a whole. Some of my peers are seeing record growth in their markets.

Recommendations of business experts suggest that companies with a recurring revenue model are much more durable in difficult economic times versus project or fee based businesses. Recurring revenue is more reliable and the costs to customers are more predictable. If you don’t have recurring revenue in your business it may be a good idea to seek out a consultant in your market vertical to put a program together. Perhaps there is a peer group for your market or a business group like Vistage that can be a resource.

We have exactly 1½ months remaining in 2010. Here’s to a strong finish to your business year!



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