Monday, February 23, 2009

Small IT firm remaps business plan for the long haul

It took a major setback and serious restructuring for Michael Cocanower's small IT development company to find its footing, distinguish itself from similar companies and develop a plan for sustainable growth.

And being associated with Microsoft products and services doesn't hurt.

"All of our technologies are Microsoft-based," Cocanower said. "Our deep relationship with Microsoft gives us very early access to new developments and software, sometimes in the earliest developmental stages."

Stressing the Microsoft connection has helped the Phoenix-based firm prosper at a time when IT companies, like other business enterprises, scramble to weather the recession.

But the downturn is just the latest challenge for itSynergy, the company that Cocanower started in 1997 after working as a solo technology consultant.

It offers a number of services, including developing custom software, creating internal communication networks and protecting data from prying eyes outside the company.

It initially focused on small- and medium-sized businesses, especially those in residential construction.

"Through 2001, we had all the work we needed. We'd grown to about a dozen people, and me, just with one large and one smaller client," he said. "Then the market crashed, and 75 percent of our business and our revenue walked out overnight."

Cocanower persevered, but it wasn't easy.

He had to cut staff, land new clients and find a way to set itSynergy apart from dozens of similar application and software development companies.

Highlighting the company's Microsoft connection helped.

But Cocanower also worked with home builders and contractors to boost his client roster, and he targeted smaller businesses with as few as five computers in various industries.

About 70 percent of itSynergy's clients have 50 or fewer workstations, with businesses in accounting, legal services and health-care services, in addition to residential construction.

Cocanower said other consulting firms also are turning to itSynergy as a resource in developing IT solutions for their own clients.

"Most small businesses really don't understand their total technology needs," he said. "They rely on us to tell them, and, really, that's how it should be."

The company's staff has grown again. Cocanower said his employees each have at least a decade's experience in the field, and strong opinions to go with it.

"I pay them to argue with me," he said. "It pays off for our customers because it gives us a higher level of response as a cooperative team."

Cocanower said that he's confident itSynergy is positioned to continue growing, even in today's business environment.

"To me, the business model is key, and we have a good model in place," he said.

Source: http://www.azcentral.com/

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