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InSmartBudget > Startups > How To Select An IT Service Provider For Small Business Owners

How To Select An IT Service Provider For Small Business Owners

News Room By News Room July 7, 2023 7 Min Read
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Founder of IT Creative Labs, a full-service technology company with expertise in software development, digital marketing and staffing.

Half of the businesses we work with are startups in the tech space across very different industries. Even so, the majority of them have something in common: They are coming to us after a previous negative experience with another digital agency. For that reason, I decided to put together this step-by-step guide on how to select an IT service provider that’s right for your startup or small business.

One pattern we’ve noticed is that many tech startup founders are not coming from tech degrees or backgrounds. As a result, they come into the space with imposter syndrome and are more prone to going with the wrong team. Oftentimes these founders are looking for tech-savvy partners. If you are able to get one who you trust and has a good reputation, great. Otherwise, here are five steps you can take to vet your technology partner organization:

1. Make sure the vendor understands your product.

You may not be tech-savvy, but as the founder, you know your idea and product/service better than anyone. One of the key factors to successful product development is that your tech team also understands what you are building, why you are building it and where this product/offering is going to develop further. The best part is you don’t need to speak tech language for that; it’s actually the opposite. Ask your questions and let the vendor respond and listen carefully. Here are a couple of questions you may want to ask:

• Based on the information shared, should I opt in for a mobile-first approach or go with the web version first? (Hint: Pay attention to the thought process behind the answer.)

• In your experience and based on the information shared, what would be the key features of a similar solution?

Are they making sense? Are they using obscure phrases and terms or are they actually showing that they understand and are aligned with the idea, the purpose and the potential?

2. Review prior experience.

It’s absolutely normal to expect the vendor to have prior experience and knowledge in the industry/niche you are looking to market to. Nevertheless, treat it as a bonus rather than a hard requirement. As long as the team checks off the box in point No. 1, you can safely proceed to the next step.

3. Assess RFP responses.

Look beyond the numbers. As you go out to get your project estimates, you will notice there might be a very large variance in the numbers. You want to eliminate providers who only offer estimates off the top of their heads. The best way to do this is to look at the estimate breakdown. It’s a good indicator of whether the team has really thought through your specific project or if you were given a generic ballpark without putting much thought into it.

This simple exercise is also a great way to get a feel for how engaged the team will be in your project. At IT Creative Labs, for example, we work through each request as a team, flushing out some of the potential assumptions and requirements that were not mentioned and thinking through how to build the product to scale in the most efficient way for the client. It is undoubtedly an investment that doesn’t often pay off when the potential client goes with another vendor, but it is something we strongly believe is important to do in order to provide a strong ballpark and show that we have thought through the project to the best of our abilities.

4. Prioritize communication.

Even if the vendor has the most exceptional tech talent, if there’s no proper communication, your project will fail. So, during your selection process, be sure to include this point on your evaluation spreadsheet. It is important to differentiate between a person or a team that is great to go out for drinks with and a person or team that is great to work with. These are not always one and the same.

Here are a few communication points to look out for: Clear messaging, direct and to the point, easy to escalate up and down the team org if necessary and engaged in your product/service offering. And here are some red flags to look out for: Great communication skills but doesn’t answer questions directly, talks a lot but doesn’t show much understanding/interest in the product/service and fun to talk to but will be hard to work with.

5. Look at client reviews.

A great criterion to check against is what other clients are saying about the company. There is a reason this is the last step and not the first. Larger companies will naturally have more client reviews. Therefore, pay attention to the quality of the reviews as opposed to the number of reviews posted. Read through them and see if they seem real and appealing.

The success of bringing your idea to life will largely depend on choosing the right IT partner. If you choose correctly, it will be an investment that will not only pay off but also allow you to trust your tech team to do their job, while you focus on doing yours. As challenging and daunting as it may seem, if you follow the steps outlined in this article, you will navigate the space with more ease and undoubtedly find a good fit.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

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News Room July 7, 2023 July 7, 2023
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