Is a Technology Franchise Right for You?
The lifeblood of any business is the reliability and strength of their IT. Small to medium-sized businesses need affordable, dependable IT support solutions. CMIT Solutions is a leading provider of IT services for small and mid-sized businesses (SMBs). They operate on a managed services model that offers specialized outsourced IT services at affordable and consistent monthly rates.
CMIT Solutions helps entrepreneurs tap into the growing market for small business IT support. Over the past 18 years, they have grown to 130 franchise units that are operated by local entrepreneurs. Their services include monitoring servers and software 24-7, resolving IT issues as they occur, storing data securely, and implementing disaster recovery processes.
SMBs represent a market niche that IT companies have neglected. Major technology companies rely on high-dollar accounts and generally ignore businesses with five to 99 employees. The only real competition for the SMB market are the “break-fix” vendors that usually cannot offer round-the-clock support, affordable bundled services, or long-term relationships. CMIT Solutions offers SMBs proactive and reliable IT help, helping businesses avoid “break-fix” solutions.
Is a CMIT Solutions franchise right for you? Below are company highlights to consider.
- Technology is becoming more complex and advancing more rapidly.
- Small business functions, from billing to marketing to customer service, rely almost exclusively now on IT systems.
- Most small businesses do not specialize in technology, creating more demand for dependable tech specialists.
- Technology is more widely available than ever, which means its use by small businesses will continue to increase.
- The proliferation of mobile devices (laptops, smart phones, tablets) and the additional security risks they represent are issues that most small businesses are not prepared to address.
Small businesses –
- Represent 99.7 percent of the 6 million American employer firms.
- Employ just over half of all private sector employees.
- Pay 44 percent of total U.S. private payroll.
- Create more than half of private, non-farm gross domestic product.
- Have created 64 percent of net new jobs over the last 15 years.
- Hire 40 percent of high-tech workers.
Small business and technology –
- American SMBs were expected to spend more than $125 billion on technology in 2011, up from $120 billion in 2010.
- The International Data Corporation predicts that SMB IT spending worldwide will reach nearly $630 billion in 2014, with annual growth averaging 5.5 percent.
- Of American SMBs, 71 percent expected their IT budgets to grow in 2011.
- Eight of every 10 American SMBs consider themselves early or middle adopters when asked how quickly they adopt new technology – indicating that businesses are willing to spend to keep technology up to date even with limited budgets and staff.
- Only 25 percent of SMBs currently use mobile solutions, but 43 percent expect to be using them within the next 12 months.
- Nearly one-third of SMBs have adopted some form of cloud technology, and 35 percent expect to begin using the cloud in some form within the next year
The Opportunity for outsourced IT solutions –
- SMB owners say their three top IT challenges are: IT budget constraints, aging IT products, and costly maintenance.
- The top five drivers for IT purchases: general upgrades, improvement in speed or performance, improvement in employee productivity, desire for new capabilities, reduction of complexity.
- Of small firms, 57 percent rely on internal, non-IT staff for IT support.
(Source: Technology Adoption Trends Study, CompTIA)
- “Solution providers should take advantage of the opportunity here. Keeping in mind that small businesses have little time to devote to IT analysis, providers should present concise descriptions of products or services that will bring rapid return on investment.”
- “Most small and medium businesses handle IT support internally, so there is ample opportunity for service providers to market the benefits of outsourcing.”
Key CMIT Solutions business features include:
- White collar, Executive model
- Recurring revenue creates higher business valuation, steady income stream
- Low number of Professional employees
- Business to Business – 8-5 Monday through Friday
- 600 billion dollar, underserved market in the SMB space
- High margins
- Ramp time can vary depending on the ability of the candidate to create relationships and business
Benefits of a CMIT Solutions franchise include:
- Recession Resistant – small businesses are more stable in the US and they NEED outsourced IT solutions
- Competition – Competition exists at the local level primarily with several independent type 1-2 person shops. Most of these are reactive to their clients’ needs. Some strong regional players; less competition from other franchise concepts.
An ideal candidate would be:
- People with business backgrounds and sales/marketing experience.
- Candidates with IT management experiences are a big plus.
- Must be a strong leader, have passion for achieving results through others, be a good judge of character, and have an affinity for building long-term client relationships.
Role of franchisee:
- Networking, sales, identifying technology challenges with local business owners, manage client relationships – building a “Trusted Advisor” role with clients. Scalable business model with few employees, low overhead and high margins.
Total investment in a CMIT Solutions franchise:
The total investment range is $129,300 – $170,000.
If you would like more information about buying a franchise please visit my webpage Buy a franchise or buy a copy of my book – Successfully buy your franchise. If you would like more immediate help with buying a franchise you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.