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Video transcript

my name is Dave Smith name of the company is tech scape IT we're primarily focused in New York City we do IT consulting services managed services information technology services in and around that market it used to be that you would provide this thing called staff augmentation you would hire an engineer you'd pay them a certain amount of hourly rate they would sit on site a certain number of hours then that manifested itself into okay I only need one day a month or whatever to have this person come on-site and then it manifested itself into these managed service plans or managed service businesses so my business we sell network infrastructure phone systems managed service plans the product would be something like a network infrastructure or a phone system that you would purchase for a business it could be anywhere from ten thousand dollars to a million dollars depending on the size of the organization then we would sell professional services to be able to install that product and deliver it to every end point in the year organization or however many offices that you have and then we would sell a managed service plan on top of that and we would provide advance support for them I need to develop a value to the product that I'm selling it's not like I'm selling an apple and the Apple is the same you can buy everywhere I'm selling a solution and that solution has to be sold at a higher level because they need to understand the ROI they need to understand more management business aspects then a technical person would understand about the Meg the speed the gigabits and so forth we don't focus on people that are 50 user companies we focus specifically on advanced technologies because that's where the market is we're growing so fast because that is the focus of our organization we're not focusing on a small market we have very well known clients that are doing call centers for all these major organizations if they're down for an hour it cost millions of dollars 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 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 the most difficult thing to spend money on is positions within your organization that don't generate money that's the most difficult decision to make I'm going to hire this object manager but he doesn't directly correlate to a dollar amount unless I sell a project every two weeks you're reminded of that dollar bro we have two floors of Manhattan it's expensive you can fake it but a certain point if you want to grow you need to have the credibility behind it you have to have a name the technical expertise and you have to have the space you have to be able to demonstrate what you can do any sort of IT services businesses grown exponentially since 1996 we've grown nationally and internationally over 5,000 percent in five years 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 to keep that growth you have to have an aligned mission statement you have to have an aligned business plan of what you're doing and this has been a struggle for me over the last five years because we started very scrappy I'm looking for whatever opportunity that I can ultimately get and I want to deliver that product you're fighting for whatever business that you can get 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 so that is it is a very different dynamic that you have to change and you have to be able to shift