The researchers have finally figured out what Architel has known since 2001.

• 50% of small businesses find their IT service provider via referral.
• 50% suggest good references are more important than price.
• 66% of small businesses prefer a fixed-rate contract, instead of an hourly rate.

Check out the report here, or get a snapshot below:

In their early stages, small business owners oftentimes act as their own IT departments. But as they grow—and to foster growth—it doesn’t take long before they need to hand off IT-related tasks to a dedicated resource.

Through a recent LogMeIn survey, it’s clear that many small businesses turn to IT service providers, which provides the flexibility to take on only as much IT service as they need.

Types of Providers and Services
Small businesses are handling their IT business services in a variety of ways, with 21% currently in a formal contract with an IT service provider.

Top IT Concerns for SMBs
Surprisingly, the top concern among small businesses today is how to use technology to effectively work smarter and maintain a competitive edge. This indicates that IT service providers must go beyond just implementation of secure systems and break/fix scenarios, but should offer value added consulting to help small businesses maximize productivity gains achieved with the right combination of IT tools.

Finding IT Providers
Over 50% of small businesses find their IT service provider via referral, which means the single best thing you can do to gain new customers is to ensure total satisfaction of your existing relationships. Satisfied customers will not only renew their contracts with you, but will recommend your services to other small business owners, which is key to business growth: a personal recommendation is the most important criteria cited by small businesses when selecting an IT service provider, exceeding even the price of the services.

Billing Preferences
Most small businesses indicate that the type of billing they prefer depends upon the service provided. But when given the choice between fixed price and hourly rate, twice as many prefer a fixed price. This indicates that to secure more business, you should offer customers fixed-rate contracts. As a result, you will need to focus on efficient delivery of IT services to gain maximum value from your service contracts.