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Nov 20, 2009 -

The start- SGA Business Systems is a collaboration solutions provider started in 1984 by myself and two friends. We were all 25 years of age. One dropped out after a month to get his medical degree. Another stated for six years and we did software consulting and development work. From 1990 to the present, it’s been my venture. We began part-time and built the business to the point of going out on our own.  HP, NCR and Lotus were the players in collaborative software back then.  The other two died but we looked at Lotus Notes back in 1993. Technically, it blew me away. Ever since then, we have been dedicated to running small businesses; and helping medium and large businesses with their software development  built around this software. Most people think of it as just e-mail but it’s much more.

Getting the word out- When we began, there was no internet. But even today, most of our work is still by word of mouth. It’s always tough to start a business. I’ve been through the cycles. The early 1990‘s were tough; and in 1995, we almost went out of business. 2004 and 2005 were bad years for us. The software that we used was owned by IBM and they were looking to go in a different direction. And that was hurting us. I had family members saying I should become a mortgage broker. This was at the beginning of the housing boom. I’m glad I didn’t take that advice.  Do what your passion is and what you believe in. I know what I’m doing now is perhaps even more applicable than it was in 1994.

On funding- If I was starting out now, I wouldn’t look for angel or vc funding. Outside funders would have to believe in your passion and vision. In the late 90’s, investors would ask, “What’s your exit strategy?” I didn’t have an exit strategy because I enjoyed running my business. My strategy is to have satisfied customers. I don’t have a five-year plan because I can’t predict that far ahead. We get approached from other firms looking to buy us or merge. But we’re deep into our clients needs and another firm won’t understand that. One of our keys is that we make sure we’re affordable. We have a staff or five and our costs are low. I also like to find what people I hire enjoy doing.  If you give someone a task to do, it helps to know if they enjoy doing that type of work.

On spending- My philosophy is to pay my staff well. And they stay. In 1995, I was doing all the accounting work. A person who was a client was laid off and came to me. I knew I had to hire her and I paid twice what I thought I should. It was a great hire and she is still with me. We’re self-sufficient financially and try to stay away from debt. We run it lean and mean. But we spend for quality. Much of our work is virtual. So we don’t spend money on travel or on a fancy office.

On Blackberries- I have a Blackberry but it gives me freedom.  I’m not tied down to it but I use to keep in touch. And I don’t have it on when I’m having  dinner in a restaurant. When I have meetings, I’d like all attending to focus on the meeting and not use their laptops or Blackberries until we have break. The attention of people can be really short when you’re trying to make a point.

Outlook- In business, there are circumstances you can’t control. You can’t force people to buy. You might have the greatest product on the planet but the customer needs to be ready to buy. And you have to be there when they’re ready. And don’t go crazy trying to figure out what you’re doing wrong.