All systems go
Entrepreneur corners market

SMEs deserve to have access to the same products and services big business enjoys.

So, Jaco Louw set about to make this a reality in the IT space and created Impact ISP in mid 2007.

The former corporate IT manager had worked at a number of large firms over the years and he says that small businesses simply do not have the resources to run big IT departments.

"I want to give the SME market what corporates have access to at a SME price," he explains.

Third time lucky

The Sanlam / Business Partners Entrepreneur of the Year ® entrant says that he started his first business right after school, but closed it down when he found a full-time job. Many years later, he tried again, but was headhunted by a large firm that offered a new challenge.

But, the idea for Impact ISP would not leave him alone and he realised the need in the market more and more over time.

In essence, the business operates as an outsourced IT department to customers. This way, small businesses have access to highly skilled technicians that can address their IT problems directly. This ranges from problem solving to maintenance and creating infrastructure.

"It is one thing to have a PC sitting next to a desk but a different matter to have it perform backups for example," Louw explains.

"There are some things that you take for granted in the corporate world such as support, backups or staff being able to view and share calendars that smaller businesses just do not have. But, these services make business sense and they (customers) see how it will affect productivity."

A business is born

Louw adds that he realised that SMEs prefer to deal with one company for all their IT needs and Impact ISP attempts to do this.

But, Louw also knew that his business could not offer every conceivable service and he makes use of service providers that can offer non-core services: "Our core business is infrastructure such as networks or telephony systems".

As a result, Impact ISP is able to offer clients a one-stop shop that offers Internet services such as web-design, hardware and support services.

Interest in the Bellville-based business has been good and Louw says there are about 200 clients onboard already.

This includes each and every of the business' original client base which proves the concept and value offering to Louw.

Interestingly, many large businesses have also been making use of their services, especially for smaller branches without dedicated IT staff.

The challenge over the years has been to convince smaller, potential clients that IT is not a moneyless pit where the investment can never be recouped.

As a result, Louw needs to make decision-makers understand that a good IT infrastructure and systems can help a business perform better as productivity increases.

"Once you show them what is possible, they catch on. Also, businesses move through different levels of IT maturity.

"We do not just want to be another IT company – we want to be able to drive down the costs for our clients and allow them to take advantage of new technologies and solutions coming through.

"It comes down to change and IT is a game that changes constantly."

He explains that SMEs often approach IT costs in a reactive manner. As a result, they will only spend money if something breaks for example. In contrast, a proactive approach means having systems and infrastructure that breaks down less often and increase productivity and turnaround times.

But, because there are so many approaches and standards to IT, many businesses will have a mixture of hardware and systems and this can create problems down the line.

Louw says that by spending some time to research and understand a solution before implementation, business owners can avoid potential headaches down the line as the business grows and matures.

"If you look at any product, there are salesmen that will sell it for sell's sake. There needs to be a level of transparency and clients need to do a bit of homework."

Bright future

Louw also believes that as South Africa becomes more technically advanced, businesses will have no other choice but to rely more on IT.

"If you are always on and always connected you make things happen immediately and whenever you want.

"IT will definitely become more prevalent in both the home and business environments. The opportunities that are being taken up overseas through IT development will come to South Africa in time.

"I think there will be a lot of new products for cyber security and cyber safety for example. Even in the services sector there is scope such as home Wi-Fi installations for example and 24-hour call outs when a home network goes down."

In his own business, Louw also believes that growth will follow and he plans to open up offices nationally.

Thereafter, he intends to split up his different service offerings, allowing the business to specialise and diversify more.

"This will allow the client to still approach one brand while being able to access even more services."

System reboot

Louw says that his biggest challenges so far have been cash flow management and implementing systems in a small business.

Because he started the business with his salary and pension, cash flow was initially a big focus area.

At the same time, he had to implement a number of systems in the business to make sure that everything operated smoothly.

The latter problem was addressed fairly easily given his previous management experience but Louw adds that creating systems is not just about drawing workflow diagrams. Rather the business' staff need to understand the workflow and buy into it.

He says that surviving the first few years in business comes down to perseverance and people.

"You are always worried but the sun always comes up tomorrow. Relationships are the secret to surviving because business revolves around relationships – both inside and outside of the business.

"Adding value and offering service all come later. It starts with your own integrity and building relationships with other people."