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Upsize on Tap: The scoop on M&A

Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.

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by Sarah Brouillard
May 2004

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Service should take precedence over costs, technology

“Service, service, service, with some service on the side.” That’s what small-business owners should expect from their Internet Service Provider (ISP), says Bil MacLeslie, general manager of Minneapolis-based Visi.com, an ISP.

Choosing Your Internet Service Provider

Don’t get distracted comparing costs or caught up with the technology; those are secondary issues. ISPs should be regarded no differently than a diaper service or a lawn care service, he says. At the end of the day, small businesses will benefit from a provider that offers high-quality maintenance and responds quickly when there’s a problem to be fixed or a question to be answered, he says.

Common sense? Of couse. But in today’s world, where quality customer service often comes as the exception instead of the rule, customers accept lower standards than they should. They tolerate waiting on hold for a half an hour when they call a help desk, and may in fact expect it. Or, they anticipate an answering service or a voice mail system, instead of a live human being, to pick up when they call.

Any ISP that routinely exhibits such standards isn’t going to provide the best service to businesses, say ISP professionals. And small employers, in particular, must demand immediate availability from their ISPs if much of their business is conducted over the Internet or via e-mail.

“Internet access is a commodity. Many ISPs have grown to be polished in their technical abilities to provide access,” says Jeff Hahn, owner of Minneapolis-based Internet Exposure, an ISP. “Now, differences are largely separated by customer service.”

Some ISPs distinguish themselves by providing an arsenal of value-added services, such as Web hosting and Web development. Others offer important features such as filters for viruses and spam, says Hahn.

For small businesses, the best ISP often will house staff who will remember customers by name, says Greg Kemnitz, owner and president of Plymouth-based SkyPoint Communications. Their tech support front line should consist of knowledgeable, seasoned professionals who can “give good, timely answers.” Be wary of those ISPs who hire “high school freshmen,” or other inexperienced underlings to answer calls, he says.

Time is money. Choosing the lowest-cost ISP may take a smaller bite out of a small business’s budget, but that business may lose out in the end if productivity is lost waiting around for a call back . “When you have to wait for 45 minutes on hold, that’s an expense,” says Kemnitz.

Unfortunately, the quality and value of a particular ISP’s service is difficult to ascertain on the front end of the selection process. There’s no way for a customer to take each one out for a test drive to see how fast it moves, how efficiently it uses resources, whether it responds the way you want.

Many users look for detailed and forthright information on how the ISP handles down time. Every ISP will have glitches, so watch out if the sales rep acts as though they’re unheard of.

As in any hunt for a service vendor, asking former or current customers is one tried-and-true way to narrow down a list of candidates. Talk to similar sized businesses and chambers of commerce to gather recommendations, says MacLeslie. Opening up the Yellow Pages and picking out the ISP with the biggest ad usually isn’t a wise first step when choosing a provider, he says.

Some businesses have specific needs that need to be addressed while selecting an ISP, he says. Law firms, for example, typically require higher privacy standards when corresponding or sending information via e-mail about client cases and other confidential matters. And health care companies must follow special industry regulations when exporting patient data to other parties. It’s important to ask for recommendations from companies who have similar requirements and expectations of their ISP.

First impressions are the best way to determine how well an ISP will serve a business’s needs. Call or contact an ISP, and judge how quickly each answered your call and how willing each was to help you out, says Hahn. “This will be indicative of how they may handle you once you are a paying customer,” he says.

How an ISP approaches a potential contract is another way to evaluate an ISP, says Kemnitz. Some want to lock a customer into a contract right away, asking them to commit to a five-year or even 10-year relationship. Customers who sign the dotted line may not be able to switch to a different ISP if they’re unhappy with their current one. Kemnitz’s ISP shies away from contracts out of the belief that a customer’s relationship should always be a voluntary one, solidified by a bond of quality service. “We want them there because they want to be there,” he says.

As in other industries, an ISP’s size provides insight to the breadth and depth of service it can provide. Large ISPs have a lot of resources, but may regard a customer as a number. Small ISPs have the edge in personal, one-to-one service, but may have less clout with other vendors and contractors in the industry, says Kemnitz.

Small businesses should compare their list of requirements with a particular ISP’s menu of products and services, say ISP professionals. Ask the following questions: Does the ISP offer the kind of connection the business desires, such as DSL, dial-up or cable? Does the ISP provide installation software? What are the payment options?

Will connection time be billed at a flat rate, metered, or charged based on bandwidth use? Does the ISP charge for tech support, or is it a free service? Are technicians available for consultation during specific hours only, or is round-the-clock service the standard?

Answers to these questions will help determine if it’s a good match.

Kevin Linehan, sales manager for Time Warner Cable business services, said when it comes to gaining new clients, ISPs rarely discriminate between Fortune 500 corporations and small businesses.

“Budgets are the only obvious difference among them,” says Linehan. “When it comes to technology and Internet use,” smaller employers may have more complex requirements, and a greater growth potential, than bigger companies, thus making them more attractive customers.

www.iexposure.com. Greg Kemnitz, SkyPoint Communications: 763.548.2600; **@******nt.com; www.skypoint.com. Kevin Linehan, Time Warner Cable: 612.522.2000; bu***********@**********ta.com; www.twcminnesota.com. Bil MacLeslie, VISI.com: 612.395.9000; bi*@**si.com; www.visi.com.

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