Will Your Software Vendor Make it Through the Economic Storm?

It is times like these that try the small business owner's sanity. "Will my vendor remain in business or will I be left without software support?"  Not an easy one to find the answer to.

Software companies must be built with a healthy balance between business and product development. One side of the business cannot overtake the other without drastic consequences. Hard economic times test the fortitude of a software company; customers and prospects need to watch how companies behave in these times of stress.

On the business side, a company must continue to give exceptional customer service in order to retain current customers and attract new ones. Current customers will need flexibility when possible, great customer service, and continued innovation so they do not fall behind the technological bandwagon as the economy recovers. They will need solutions that help them decrease their costs.

New customers are out there who are still in the market for what is being sold.  Business can still grow at times like these, especially those with products designed to lower costs and increase efficiency. New customers can take the place of any lost through economic attrition and create a broader base for the eventual upturn.

On the development side, a company must continue to refine its products and develop new ones, even though times are hard. If development is shut down to save costs, the company may find itself hopelessly behind the curve as the financial world rights itself and customers go to another vendor that has kept their product line fresh and relevant.

To determine the stability of a provider of any kind, a prospect should look to  how long they have been in business and whether their long term customers are staying with them. Customers should find out what is being said online about the company and speak to those who use the products if possible.

The longer a company has been in business, the more likely it is to have the financial wherewithal to survive and have a substantial customer base unlike a newer company just starting out.  If a company begins to sink, it may become evident by the presence of negative commentary in the forums and blogs. A careful second look is warranted before signing.

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