R.I.P. The MIS Group

Last month one of our biggest competitors in the Texas market suddenly closed their doors, orphaning hundreds of clients and leaving employees jobless and scrambling. Some might cheer the loss of a competitor, but I am deeply saddened by the loss. I am sad for the customers that have to find a new Sage Business Partner when they need to remain focused on generating revenue and controlling costs. I am sad for the employees and their families that depended on MIS for their livelihood. I am also very sorry to lose a strong competitor because I believe that competition expands the market and makes all of us better business people.

I’ve spent the past 3-4 weeks thinking about what happened to MIS Group and I believe there are some lessons to be learned from their failure:

1. Don’t over extend yourself – MIS fell into the same trap as Chrysler and GM. They assumed that business would continue to expand. They neglected to plan a strategy for a “worse case” scenario. This included not reserving capital to carry them through if the worst was to occur. I encourage you to consider this when you begin the budgeting process each year (you are producing budgets and forecasts aren’t you?) Plan for how you would respond if your revenue was to be double that included in your projections. Next, decide how you would respond if your revenue was only half of your projections. This optimistic/pessimistic approach will better prepare you to deal with these scenarios when they occur.

2. Be nimble – Business is not static and companies that survive are able to adjust quickly to changing economic conditions, technology shifts, and customer requirements. You should be able to adjust your business model on the fly, based upon current conditions, adjustments in future projections, and industry trends. Inability to adjust quickly to real time information is a strategy for failure. Everyone repeat after me: “Change is good…change is good…change is good…”

3. Prepare for the future – A smart business person is constantly looking for ways to be better prepared to take advantage of future economic conditions. I believe it is a huge mistake to bury your head in the sand while waiting for the economy to improve. I guarantee you that your competitors are positioned to strike if you take this approach. Now is the time to work on your business processes, train your staffs and look for better tools that can help you increase efficiencies and lower costs. Doing so will put you ahead of the competition when the upturn in the economy does occur.

R.I.P. MIS Group. We are sorry you are gone, but we will learn from your failings. Companies that do not plan, execute, and adjust on a daily basis are doomed to fail. In your honor we will redouble our efforts to proactively help our customers survive these tough times and prepare for the future.