Fridays with Frank: Can entrepreneurs start an office tech dealership in 2024?

Summary

The speaker advocates for a non-traditional approach to entering the copier business, suggesting the acquisition of a small IT company as a starting point. They emphasize the importance of focusing on security services, given the current IT landscape. The strategy is exemplified by the success of Marco, an IT company that transitioned into copiers due to customer demand. The speaker recommends this path for younger individuals who are technology-savvy and looking to build a long-term business, highlighting the need for a long-term commitment and efficient operation before expanding into hardware.

Takeaways

• 🚀 Start with IT, not traditional copiers or printers.
• 🔍 Acquire a small IT company as a foundation for growth.
• 🛡️ Focus on security services due to high demand in the IT sector.
• 📈 Learn from successful dealers who transitioned from IT to copiers.
• 💡 Customer relationships and trust are crucial for business expansion.
• 📊 A service-oriented approach with a focus on security is recommended.
• 🔑 Long-term commitment is necessary; avoid quick market shopping.
• 🏢 Take time to optimize the IT company before adding hardware.
• 👨‍💼 This strategy is best suited for younger individuals in their 30s with IT experience.
• 🌟 Technology savviness is an advantage for younger entrepreneurs.
• 📝 Building a business from the ground up is the ideal path for those with aspirations.

Q & A

What is the speaker's stance on the traditional way of starting a business in the copier industry?

The speaker believes that the traditional way, which involves starting with copiers or printers, is not the best approach. Instead, they suggest starting on the IT side.

What is the first step the speaker recommends for someone looking to enter the copier industry?

The speaker recommends acquiring a small IT company as the initial step, focusing on security services due to the high demand in that area.

Why does the speaker emphasize the importance of security in the IT industry?

The speaker highlights that security is a major issue in the IT industry today, and there is a significant demand for companies that specialize in providing security services.

How did Marco, a successful company mentioned in the script, transition from IT to the copier business?

Marco transitioned because their customers, who trusted and liked their service, asked them to provide copiers as well. This led to a $400 million company.

What is the speaker's view on the long-term commitment required for this business strategy?

The speaker believes that this strategy requires a long-term commitment and is not something that can be achieved by simply shopping the market and adding a hardware piece after a few months.

Who is this business strategy best suited for, according to the speaker?

The speaker suggests that this strategy is best for younger individuals, specifically those in their 30s with at least seven or eight years of experience in the business, who are technology-savvy and looking to build something of their own.

What is the speaker's opinion on the role of trust in customer relationships?

The speaker implies that trust plays a crucial role in customer relationships, as seen with Marco's customers who wanted to buy copiers from them due to the trust they had established.

What is the speaker's advice for someone who is older and experienced in the copier business?

The speaker suggests that this strategy is not for someone who is older and very experienced in the copier business, as it requires a different approach and mindset.

What is the significance of being technology-savvy in the context of this business strategy?

Being technology-savvy is important because it allows the individual to better understand and navigate the IT side of the business, which is the recommended starting point according to the speaker.

How does the speaker view the integration of IT and copier businesses?

The speaker views the integration as a strategic move, where starting with IT and then expanding into copiers can lead to a successful and sustainable business model.