BusinessTN

Andy MacQueen, vice president of Memphis-based NewSouth Capital Management, has been in the business of financial consulting for more than 23 years, but when the technology side of business became more than he bargained for, MacQueen lacked the internal personnel to keep up.

"Essentially, I was the tech department," MacQueen explains. "But it was not my primary responsibility. As time went on, it was taking more and more of my time."

MacQueen was discovering firsthand that taking on IT responsibilities oneself, as well as maintaining IT personnel, can prove far too expensive for a small business.

So, rather than hire more personnel, MacQueen turned to an IT consultant. From buying computers to managing a company's network, a consultant can mean the difference between a competitive company and a bust.

In determining whether to hire an outside consultant, Lora Stevenson, vice president of corporate development for Dolphini Networks in Nashville, suggests that a company look at cost vs. benefits. Stevenson says owners should evaluate how much time they spend fixing problems, how much loss they suffer from inefficient tech and how much growth they could see if the situation changed. "Look at it from a business perspective, not just a tech perspective," Stevenson says.

But when it comes to IT, efficiency and profits are not the only concerns. Sean Wright, president and founder of 3n1media in Brentwood, points to security as the greatest--and least understood--problem for small businesses. "Usually, when I take the reins on IT, security hasn't received any attention," Wright says.

According to Gary Bellanti, president of Open Road Technologies in Memphis, investing in an IT consultant is far more preferable to losing income in an emergency. "Most small businesses have only one server," Bellanti says. "So, it's critical to keep that server up and running at all times."

Bellanti's company offers managed services for between $10 and $50 per computer on the network, which is fractional, he says, to the amount a company can lose in a single catastrophic failure. "We can spot trouble before it hits, so the business doesn't suffer any downtime," Bellanti says.

To prevent IT disasters, MacQueen turned to masterIT in Memphis, a managed service provider that can operate a network, monitor security status and support hardware and software 24 hours a day, seven days a week. J. Michael Drake, masterIT's CEO, says managed service providers can be a small business owner's guardian angel in network management, but the best IT consultants understand a business from the inside out. Drake puts the relationship in medical terms: "We run into a lot of businesses in pain," he says. "They want us to write a prescription and make it go away, but if we didn't perform a physical first, that would be malpractice."

A good IT company can recognize one's business needs and state clearly what they can provide. In a long-term relationship, regular progress reports are the best way to make sure a business owner gets her money's worth. "If you can't measure it, you can't manage it," Drake points out.

But how does one find the best IT company? Drake advises small businesses to perform thorough background checks on potential companies. "Drop by their offices without an appointment," he says. "It's always great to eyeball the operation before making any more commitments."

Look for credible reports, not incredible references. When talking with other customers, Drake says, "be wary of references that can't offer constructive criticism."

Furthermore, Wright suggests looking into the IT company's hiring practices. "It's the best way to ensure qualified people are handling your tech," Wright explains.

Ultimately, Stevenson says, a business' vertical market will define its IT needs.

"Figure out your business' definition of tech, whether you rely on e-commerce or have employees spread out in the field in need of reliable communication," Stevenson explains.

While a one-time equipment purchase may be all one can afford at the moment, in the long term, investing in a reliable and versatile IT partner can take the load off a growing business.