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Monday, June 16, 2008

IT Proposals: Should You Write Them for National Service Organizations?

To put it bluntly, do NOT write IT proposals for national service organizations … unless you want to spend inordinate amounts of time getting certified and learning the latest and greatest platforms and technologies. Hardware repair is a commodity and a very low-margin business, and it’s becoming a real commodity as we move into the future.

Why are IT proposals for national service organizations a waste of time for small business computer consultants?

1. Computers are replaceable! When you’re dealing with a $600 consumer-grade PC (or even lower these days!) – which is what you can expect from national organizations on a budget – do you really think you’re going to get a call to repair it that is going to net you a huge amount of money from IT proposals. How much would anyone spend on this? It would be more advisable for these people to simply buy a new computer.

2. There are low labor allowances with national organizations for IT proposals. National service organizations in particular are going to be dealing with very inexpensive hardware, so they will not have a large labor allowance, especially not on a $1,200 notebook. So, you can’t expect much in the way of revenue for your efforts.

3. Consulting contracts and IT proposals sent to national service providers will NOT be profitable. If you are a subcontractor for a national service provider, you’re not going to be able to run a good consulting business. You’ll be in eight different offices every day and you won’t get to bill out $100-$150 an hour for high-end computer support.

Today we talked about why IT proposals to national service organizations just won’t work for the typical small business computer consultant. To learn more about this topic, visit the attached link!

Added By: Joshua Feinberg