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Saying "No"

image I was recently approached by a local company who wanted me to work as a subcontractor providing IT support to their customers. I would have to appear to be part of their company and not use my own company name and they wanted me to substantially discount my prices so they could resell my service at a profit and they would sign up the customer to a 1 year contract. The carrot they dangled was that there could be ten to twenty support contracts within a year. I considered the offer long and hard and eventually turned them down. You might think I'm crazy at this point - and I must admit I'm still not certain I made the right decision - so why did I turn down the opportunity?

Well, several reasons. I wouldn't be able to pick which customers I deal with or develop my own relationship with them. I would essentially end up being "just" a technician working for another company. There were other reasons, but in the end that was the show-stopper. I have my own business ethics (for example I don't tie my customers into a long term contract) and I need to be free to develop a relationship with my clients. I can't stomach being resold as a commodity. I aim to provide a premium service and that's reflected in my prices - "you can have it good or you can have it cheap". In the end, I guess I am a control freak. That's why I started my own business. I don't think I would have been comfortable working in those circumstances and ultimately I don't think it would have been in the long term interests of TiGra Networks.

It's not that I can't work with other companies. I have and still do work with other SBSCs and other local IT companies, but they have been people I feel a natural synergy with - people I know and trust and respect and who have treated me as a partner and not just a commodity to be resold.

Did I do the right thing? You tell me.

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Comments

Andy Parkes said:

Are you doing the right thing? I think question is are you doing the right thing for yourself?

It would be easy to take the money (ten to twenty contracts potentially would be very lucrative!) but your company principles are very important

I don't think i'd do it either. Not being able to push the company name, build relationships, etc would be too off putting

# August 9, 2007 8:50 AM

Richard Tubb said:

It's interesting you mention this now, as I was in a very similar process just last month. A larger company who specialise in a CRM application wanted to use my services to provide the underlying Infrastructure and ongoing support to their clients. They also wanted the services branded in their name, and to make a profit (and not just a basic annuity, but a large chunk) on the deal. I passed the opportunity up with virtually the same thought-process you've mentioned - so yes, I absolutely think you did the right thing.
# August 9, 2007 9:33 AM

Gareth Brown said:

Ok, so I agree that if you want to run a business, ‘being just a technician’ for someone else isn’t going to be very exciting. But consider; 1. You were asked! 2. You are obviously well regarded by the local firm. Perhaps they have more business than they can handle internally. Suggesting they have a better route to market? Often there is more than first meets the eye; I would have also considered; 1. Making a counter offer. Offering perhaps to run the client and pay them a percentage for 12 months? 2. Joining forces with them. 3. Longer term. They may go out of business and pass on the contracts. It is important to have principles, but make sure they are compatible with your business.
# August 10, 2007 9:03 AM

UK SMB Girl » Geek Squad going SBS? said:

Pingback from  UK SMB Girl » Geek Squad going SBS?

# August 28, 2007 10:12 PM