Developing Value for the Product

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Developing Value for the Product발음듣기

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Hi, my name is Dave Smith.발음듣기

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The name of the company is Teckscape IT.발음듣기

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We're primarily focused in New York City.발음듣기

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We do IT consulting services, managed services, information technology services, in and around that market.발음듣기

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Dave: It used to be that you would provide this thing called staff augmentation. You would hire an engineer.발음듣기

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You'd pay them a certain amount of hourly rate.발음듣기

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They would sit on-site a certain number of hours.발음듣기

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Then that manifested itself into, "Ok, I only need one day a month, or whatever, "to have this person come on-site."발음듣기

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And then it manifested itself into these managed service plans or managed service businesses.발음듣기

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So, my business we sell network infrastructure, phone systems, managed service plans.발음듣기

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The product could be something like a network infrastructure or a phone system that you would purchase for a business.발음듣기

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It could be anywhere from $10,000 to a million dollars, depending on the size of the organization.발음듣기

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Then we would sell professional services to be able to install that product and deliver it to every endpoint in the organization, or however many offices that you have.발음듣기

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And then we would sell a managed service plan, on top of that, and we would provide advanced support for them.발음듣기

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I need to develop a value to the product that I'm selling.발음듣기

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It's not like I'm selling an apple and the apple is the same you can buy everywhere.발음듣기

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Dave: I'm selling a solution and that solution has to be sold at a higher level because they needed to understand the ROI.발음듣기

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They need to understand more management business aspects than a technical person would understand about the megs, the speed, the gigabits and so forth.발음듣기

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We don't focus on people that are 50 user companies.발음듣기

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We focus specifically on advanced technologies 'cause that's where the market is.발음듣기

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We're growing so fast because that is the focus of our organization.발음듣기

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We're not focusing on the small market.발음듣기

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We have very well known clients that are doing call centers for all these major organizations.발음듣기

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If they're down for an hour, it costs million of dollars.발음듣기

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So, what we charge them is a fraction for us to be working through the night to be able to produce and make sure that it's up and running.발음듣기

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We spend money on internal costs like laptops, internal infrastructure for training people, demo areas so we can show clients all the things that we can and can't do.발음듣기

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The most difficult thing to spend money on is positions, within your organization, that don't generate money.발음듣기

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That's the most difficult decision to make.발음듣기

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I'm gonna hire this project manager, but he doesn't directly correlate to a dollar amount unless I sell a project.발음듣기

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Every two weeks you're reminded of that dollar amount.발음듣기

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We have two floors in Manhattan; it's expensive.발음듣기

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You can fake it, but a certain point, if you want to grow, you need to have the credibility behind it.발음듣기

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You have the name, the technical expertise, and you have to have the space.발음듣기

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You have to be able to demonstrate what you can do.발음듣기

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Any sort of IT services business have grown exponentially since 1996.발음듣기

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We've grown nationally and internationally over 5,000 percent in five years.발음듣기

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I mean it's tough at a certain point to like keep the numbers up there, because when you're talking millions of dollars, the multiple millions of dollars is much more difficult to be able to accomplish.발음듣기

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To keep that growth, you have to have an aligned mission statement.발음듣기

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You have to have an aligned business plan of what you're doing.발음듣기

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And this has been a struggle for me over the last five years, 'cause we started very scrappy and looking for whatever opportunity that I can ultimately get, and I want to deliver that product.발음듣기

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But you're fighting for whatever business that you can get.발음듣기

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But at a certain point you have to pivot, or you have to change to the growth phase, where you're strategically making decisions to grow the company much bigger.발음듣기

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So, that is a very different dynamic that you have to change and you have to be able to shift.발음듣기

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