Solution providers have to work hard to grow their businesses and make very calculated decisions in order to set the process in motion.  According to many solution providers, making the right decisions and creating a plan can be a real challenge for a variety of reasons.

More than 50% of solution providers work with a net income of 5% or less, according to experts.  And just 10% of all companies are able to keep above-market growth rates for periods of longer than five years.

Three Ways to Grow Profits as Solution Providers

There are three ways for solution providers to grow profits, and taking them in the proper order is important.

1.     They must know their business model inside and out.

2.    They have to know how to get the business model so that it is most efficient for their specific business.

3.    Solution providers, finally have to use #2 and #3 to start to grow their business.

Three Different Categories for Solution Providers

1.     Lifestyle Companies:  Solution providers that are happy with where they are and are just about to experience higher growth but want not to grow any further. 

 
2.    Moderate Growth Companies:  Those solution providers that expect to grow between 5% and 15% in the next year through specialization.

3.    Hyper Growth Companies:  Those solution providers that want to grow more than 15% in the next year through specialization, new practices and new vendors, all of which will help them get new customers and clients.

Which Are the Most Financially Successful Solution Providers?

According to many experts, the solution providers that make the most money are those that focus on SERVICES and get 25% of their revenue from solutions that are new and innovative (aka, those that were not part of their solutions package two years ago).  Complex and customizable solutions are one of the keys to the success of these types of solution providers.    

The Top Four Factors of Successful Solution Providers

In March, IPED conducted a survey that determined that the most important factors in business success include finding new businesses, customer service, technological changes and marketing.  Experts also added a fifth to the list – cash flow management (and also basic financial management).

For more information on this story for solution providers, visit the attached link.

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