VAR Profitability Series – The Power of Systems

by | Aug 2, 2024 | Blog, Lessons Learned

VAR Profitability Series — The Power of Systems

Read time -2.5 minutes

Discover how systems can drive VAR profitability through small changes, better service, and efficient IT lifecycle management with Owlytica.

In this article, we are going to dig into how to drive more profit for your VAR. We dig into the power of systems, and how they can create a catalytic effect in the business.

If you’re a CEO or leader at a value-added reseller (VAR), the goal is to make more money, enjoy the process, and provide top-notch service.

What we have found is that it’s often a compilation of the little things that make all the difference.

To illustrate this point, in Charles Duhigg’s book, The Power of Habit: Why We Do What We Do in Life and Business, and specifically the success story of Dave Brailsford and the British cycling team, there are key lessons in improving performance through small, deliberate changes. 

The Power of Small Changes

Dave Brailsford, who led the British cycling team starting in 2003, implemented minor yet impactful habits to enhance the team’s performance.

For instance, bringing personal pillows on trips for better sleep and testing different balms on bike seats to reduce chafing were small tweaks that collectively led to significant results.

By the 2008 Beijing Olympics, the team had won 60% of the gold medals, and in 2012, they had set nine Olympic records.

Focusing on Performance Drivers

The goal is more profit, but the irony is we shouldn’t aim directly at increasing profit.

Instead, focus on the upstream factors that drive performance. One crucial aspect is having the right system to run your business.

Without it, you can become just another commodity reseller, with inadequate reporting, inefficient decision-making, and an overstaffed model that involves “throwing more bodies” at your problems.

This can lead to Engineers with nothing to do, and salespeople bogged down with low-value administrative tasks instead of selling.

A Competitive Advantage with the Right System

A robust system can provide a competitive edge, helping you attract more customers, offer better service, and reduce labor costs. This ultimately leads to winning more business and increasing profitability.

As someone who has built and sold a successful reseller business over the past 15 years, I can attest to the importance of having the right system in place.

Introducing Owlytica: Your Solution for Business Growth

After selling my reseller business, I retained the software platform that was pivotal to our growth and profitability. This platform, called Owlytica, is now available to help other VARs enhance their operations through IT lifecycle management.

IT Lifecycle management is a proven strategy to grow and expand your reseller, by becoming an irreplaceable partner or your customers as you unify, quoting:

  • renewals
  • contracts
  • assets
  • and eventually lifecycle.

These components provide the building blocks for better service, more margin, and a lower cost of doing business, all of which drive profitability.

To learn more about our Million Money Making Blueprint—a free service to map and identify the key areas to grow your profit, margin, and cost-savings—visit here today.

 

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