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    2 Replies Latest reply on Apr 19, 2010 12:57 PM by wdywft77

    IT Service Provider: How do I get to the next step

    rybad95 Newbie
      I apologize for posting this in the startup forum, but my business is still in what I call a startup phase. Here is the brief history.

      Currently, I work for a big IT outsourcing company. A friend of mine, started an LLC several years ago because in our business, we get a lot of requests to do "side jobs" etc, that our employer does not provide service for. Over the course of the first year, my friend (now partner) landed a pretty lucrative account support a local mortgage company. Through his inexperience of running a business, and the fact that the mortgage company quickly went out of business, he took the company into debt (about $10K) .. Not too much, but keep in mind, this is a part-time venture at the moment.

      At this point, he approached me to see if I would help out as he needed to increase business now, to cover the debt. Through an agreement, we decided that I would partner, and lend some financial backing to get the boat right-sidded. Over the past 1.5 years, we have taken the company into the black. We have gained new clients and we are starting to earn extra income from this "side" business. However, I am at the point now, where I wish to make this my full time job (as does my partner). The obvious problem is that neither of us can afford to give up our current salary levels, and we are not making enough in our business right now to cover what the income we each "need". I know this probably seems obvious to most people; either "shut up, and Jump" or "forget about it and punch the timeclock".

      We feel like the only obsticle we have, is that we need to obtain about 5-8 more new clients, which does not seem too difficult, but the more clients we obtain, the more demand there is for our service and attention. It is difficult for us to provide the necessary service while still tied to a regular day job. So, right now, we're in limbo.

      Yes, we think we can succeed, but due to the economy right now, it is difficult to cut-ties with the hand thats feeding us, while we strive to make up the difference. We realize that nothing is easy, and there is no free ride. We find ourselves meeting and discussing this topic over-and-over... how do we get the 5 new clients? Can we make enough to sustain our households?

      Should we look at getting investors at this point? A bank loan? (which is probably out of the question right now) or what?

      Any advice on how to analyze this, or what we should be considering before making any decisions?

      Thanks in advance for any information, or personal experience!