On The Record with Robert Cohen & Computer Troubleshooters' WW CEO Chip Reaves 26 July, 2010 By Robert M. Cohen, president and business editor, Integrated mar.com

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Robert: How did Computer Troubleshooters grow so quickly into the world's largest IT services franchise?

Chip: There are two types of people who want to get into the industry.

The most common scenario is the guy whose friends and family always turn to him for IT help. He wants a franchise to get into the business.

The smaller group is a VAR who wants to get to the next level and realizes that a franchise can be an interesting way of filling in the gaps he has.

We take care of sales and marketing for them. We help them with the new services like VoIP, Managed Services, etc. Now, we are helping them get into Cloud computing.

Robert: Describe your typical skill set of a franchisee?

Chip: Historically, the stereotype is someone between 40 and 65 with a career in a larger organization as the IT guy. They want to get into something new that will leverage their IT background.

Robert: Is this skill set changing?

Chip: We are starting now to get people with no IT experience. They see this as a viable franchise idea. We help them build the business.

Robert: What should be the skill set be as you move forward?

Chip: We are starting to see that the need for tech skills is not as important as in the past. IT experience is a nice to have, but not an absolute necessity. Franchisees need a comfort level in sales and marketing. They have to be able to help people get the solutions they require. They need to understand the role the technology plays for each customer. They need to be more business savvy and less interested in products.

Robert: Why the focus on SMBs?

Chip: We provide a comprehensive range of computer and technology solutions to small business owners & typically with 1 to 25 staff as well as to private home users. Whether you are looking for help with technology issues, problem prevention, virus and spyware remediation or website development, Computer Troubleshooters can help. We even offer the world's only "No-Downtime-Guarantee" on our top managed services plan. These are all things that SMBs need but frequently cannot afford. We make it affordable.

Robert. Do your Franchisees make money?

Chip: Yes. There are lots of ways to make money in this business. There is a strong need for IT help in all sorts of verticals based on business size, technology needs, sector, etc. The Franchisees need to find loyal customers that understand the value of what they are providing.

Robert: How does someone become a franchisee?

Chip: We turn down more than we accept. Usually we tell them what they need: more IT skills, more money or possibly more social skills. We invest in their success. We look at their business skills. We want them to have a realistic understanding of the business and that the money will take time as no business makes a lot of money right away. It can make six figures to get the business off the ground.

They have to align their lifestyle with the business requirements.

Robert: Do you train your members?

Chip: Yes, mostly on operations, sales and marketing and most importantly on business operations. Everyone wants to talk about how to get their first customers, I think the operations is the key & how they are going to manage the customer relationship, service them, support them, and how they will work with us. They need to be able to keep their customers and move them up.

Our individual franchisees are fully trained at pinpointing and solving a broad range of computer and technology problems. In addition, our unique advantage lies in the power of our global group. Our private internal communication network is second to none, so our customers technology problems or business needs will benefit from the experience of Troubleshooters.

Most in US franchisees are break fix (bottom) guys looking to become solution providers. We help them get there. We facilitate lots of interaction between franchisees. We teach them how to run their business, marketing, vendor relations, etc. We also have a national vendor program whereby our franchisees get group volume discounts. It works pretty well.

Robert: Do you facilitate peer-to-per learning?

Chip: Yes. We put on workshops and webinars. A critical part of our on-going training is the comradely of being part of the larger group.

Robert: What changes do they need to implement in order to thrive over the next 2 years?

Chip: They need to diversify. Need to be able to provide all the services that their customers need. They need to offer managed services. If they don't provide managed services, they will lose their customers to someone who does offer managed services. Same thing with cloud computing, VoIP, backup and disaster recovery, etc. If you are not bringing the services to your customers, they will go elsewhere. That being said, they still need to provide break-fix services.

Robert: What about security?

Chip: Security is an over arching thing. Goes with everything. Not a solution on its own.

Robert: Do you have any advice for Vendors catering to SMBs?

Chip: Make sure whatever you are doing will fit into that hypothetical office of the future within the cloud. Solutions need to be able to apply to the cloud, interact with mobile devices, etc. In regards to VARs, you have to have an offering that is good and is easy to describe and sell to the VARs so that we can resell it to their customers. Offering has to fit into the SMB space. Don't be too technical. Need business people who can teach us why your products are as great as you say they are!

Robert Cohen, a passionate and enthusiastic channel advocate, is the founder of the ChannelLine Advisory Council as well as president and business editor of Integrated mar.com, publishers of Channel Advisor, eChannelLine and ConnectIT. Since 1980 he has worked with 350 IT vendors, distributors and resellers in developing and implementing strategic go-to-market programs, using a variety of direct, channel and hybrid models. Integrated mar.com, in conjunction with Robert has created the Trusted Business Advisor program.

Robert can be reached at 1-800-465-2059 or by email at rcohen@integratedmar.com.