Atos CEO exits after 5 months. Zendesk CEO exits after failing to sell the company.
Cyber-security firms are laying off. Why? I thought it was a hot solution.
Many service providers do not operate at a profit (just check the financial statements). Some free cash flow, but they lose money every quarter as the SG&A line item keeps expanding. If they are publicly traded, they have access to capital. If they are private, it is more challenging. Right now, it seems that the wide open flow of capital into companies is slowing down due to the economy, rising interest rates, the crypto crash and the stock market slump.
Likely, we will still see layoffs for months to come. Analysts are saying CAGR for UCaaS will be 11-13%. That isn’t enough growth for most of these companies. It will cause more stock price depression and layoffs. Companies with easy access to cash can find great buys right now for inorganic growth. [Cisco, now is the time to buy some UCaaS & CCaaS business!]
I don’t see how any company can have organic growth. The massive amount of musical chairs means that no one is in place long enough to execute on any strategy. When the C-Suite is constantly changing, there isn’t a way to establish strategy, let alone execute on it.
Training of salespeople is non-existent. Salespeople need to know the company (values and mission), the products, the target market, the value proposition and much more to have the confidence to talk to Buyers. This might be a reason so many companies look to the channel. They don’t have to hire and train salespeople.
In the MSP space, both vendors and MSPs have been in a four year cycle of M&A. The latest round has many MSPs uncertain as Datto was acquired by its competitor. [The DOJ is really doing a great job! /sarcasm ] MSPs were busy with M&A transactions – exiting, merging, buying – which distracts from growth. The vendor M&A adds uncertainty, too.
In the Agent channel, the M&A has also disrupted normal business. Even TSBs are playing musical chairs. I have yet to figure out how these TSBs can handle the growing payroll that they have taken on in the last two years. (Back to the SG&A line items.)
Some programs keep looking for more partners and some are looking for different partners. How about a Profile of a Good Partner? How about aligning a good partner to the segment of the SME that would be a good fit for your services? You probably don’t know that stuff, but it is worth finding out.
You want partners and salespeople to know the Buyer Persona, the Target market, what that target buys from you and why, and the value proposition. This is what any representative of your business needs to know to effectively sell.
With all the moving pieces, organic growth is tough. Companies need to get back to basics in order to set a foundation for a solid sales experience.
These are just a few of the things I am seeing and needed to get it down on a page out of my head. Hence, this blog post. Thanks for reading.