So, What’s the Value?

Posted by Jim Van on July 1, 2011 under entrepreneur, security, small business | Read the First Comment

Last week, I talked about a great book, The New Small written by Phil Simon, a tech consultant who’s been around the track a few times and knows what he’s talking about. I was discussing his book with a client, who brought up an interesting point: “If we’re able to use free applications and do most of the computer maintenance task ourselves, then why would we pay for IT support services?”

A good question, and one that deserved an answer. A recap of the conversation:

The client, who owns a small public relations firm (8 people), has had some recent successes with his small business clientele, a segment in which, like my IT firm, Logicomm, specializes.

Therefore, my first question to him was “given that there are so many public relations options available to small business these days, why would a business pay for your services, excellent as they are? Couldn’t they just do the PR themselves and pocket the expense?” “Of course not”, said the client, “they focus on their core business. Most of them have no idea of how to develop and execute a successful PR campaign.”

“Aha!” I said, “the same holds true with ‘do it yourselfers’ in the computer and networking space. Would you prefer to be working on your craft and billing a client, or working on your network or systems to avoid what probably would be a minor expense?”

Fact is, when one is using professional services, whether a lawyer, accountant, PR firm or what-have-you, you’re paying for knowledge. If the firm with which you are dealing, you shouldn’t be paying a lot.

There’s nothing worse than the feeling of being ‘ripped off’ after an engagement with a professional service, and it usually spells at least the near-death of a relationship. A good service provider, whether a lawyer, accountant, or IT firm, should clearly provide excellent value for the money you’ve spent. Otherwise, perhaps it’s time to rethink the relationship.

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  • Manesh S. said,

    We have a small 4-person design company, and were doing all our own IT stuff ourselves. One of the partners (we’re all partners) used your online calculator and was amazed at the true costs of what we were doing! After checking around, he found that the facts supported offloading some of what we do to an external firm. That’s when we discovered how many things we were doing wrong, and that, in itself, has value.

    Now, we work on clothing design, and let our provider work on our systems when needed.

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