As a field service professional, you already invest all of your resources into your business. The last thing you want is to find yourself saddled with a software partner that does not have the resources to support your growing business.
That’s why financial viability is such an important topic to have when evaluating which software vendor is the right one to partner alongside.
5 ways to spot financial risk in your software partner
1. Watch out for your software partner’s financial news about investments
Stepping into an agreement with a software partner begins with trust. And an important building block of establishing trust is through transparency and open communication.
If your provider doesn’t publish their financials, take a look at their recent funding news. Have they decreased their valuation when they asked for more funding because cash ran scarce? Don’t be hesitant to apply a little pressure. If you’re concerned about how financial performance is affecting the business requirements you’re entitled to, bring the topic up for discussion with your account manager and support team. Better yet, ask if there is an open line of communication with the CEO.
2. Keep an eye out for deteriorating valuation
Even if a software company isn’t transparent about its financial statements, there are ways you can get a sense of if a company’s valuation is going down. For example, look into their IPO status. If a company previously filed for an IPO years ago, but that IPO has still not materialized, this could be a red flag of weak financial performance, declining revenue, and lack of investor confidence.
3. Monitor market share
If a vast majority of the market uses one specific software solution, there’s a reason why. Market leaders have demonstrated their ability to deliver quality products and services that meet the needs of their customer base. They often have more resources available to research and develop better solutions and customer support. Plus, they know software success is much more important than slapping a modern interface over some low-quality code and sending it to market.
4. Measure recent mergers and acquisition activity
Just as mergers and acquisitions are common in the pest control and lawn care industries, it happens in software, too. Still, it’s important to look at the approach a software company is taking to M&A activity to help judge their financial health.
For example, if a software company is only acquiring direct competitors, it could be because they are trying to buy out the market because they know their solutions lack competitiveness. Instead, an indicator of strong financial health would be if a software company is acquiring complementary solutions. This is because it demonstrates a forward-thinking approach to meet a wider range of customer needs. Then, best practices and features can be leveraged across industries and tools.
5. Read between the lines
When in doubt, take a look at your software partner’s marketing campaigns. If their approach favors cheap attacks, it could be they know their software application just can’t compete against a proven, market-leading platform. Be sure to research testimonials, user stories, and case studies before you buy into anything you read in a comic strip.
Why is your software provider’s financial viability important?
Financial viability refers to a company’s ability to maintain financial health and stability long-term.
As a software user, the financial health of your software provider can have serious implications on your ability to run your business. Here’s why.
Consistent & reliable service
A financially stable software partner is more likely to be able to provide its services and support long-term. The last thing you want is a sudden shutdown or discontinuation of software that will disrupt your day-to-day operations.
Data security
A financially stable software partner is more able to continually invest in robust data security measures. That means continually protecting your information – and the information of your customers – which is important from a legal standpoint and is also a critical factor in maintaining your customers’ trust.
System downtime
A financially stable software partner is able to support their software product’s system performance so you experience less downtime. This matters so that your management, your admins in the office, and your techs in the field always have access to the tools they need to do their jobs.
Resources and support
A financially stable software partner is able to keep their support and implementation teams fully staffed – that way you always have access to the expertise you need to help train, brainstorm, solve problems, and customize modules to fit your specific business goals.
Software growth
A financially stable software partner’s development team and software engineers are able to constantly push for innovation within its products while leveraging the best tools across each software platform. That means more items on the software project roadmap – and the ability to answer requests for features from its users.
Customer expectations
A financially stable software provider can ensure your customers have a positive user experience from the point they request a service all the way through the moment they submit payment.
WorkWave: The financially-proven software partner
WorkWave is a financially-proven and market-leading software provider for field service companies.
That’s because:
- We’re committed to being transparent with our financial position. We even post our financial highlights on a quarterly basis so you can see for yourself.
- We’re committed to providing the best in-field service, honing in on the specific needs of pest, lawn, cleaning, security, HVAC, last-mile delivery, and more. These aren’t just buzzwords – our business model has led to our solutions being used by 60% of the top companies in our markets.
- We’re committed to diversifying our approach to field service by only acquiring the best solutions in each vertical. We don’t believe in getting complacent. We know improving our software is a continuous process, but we’re using what we learn from each of these field service industries to strategically drive our software development forward. That way, our offerings will become an even more customized, single source of truth for your operations.
- We’re committed to being accessible. From our support teams to our CEO, our customers are empowered with a direct line to getting answers, as well as having a channel for submitting their own ideas and user requirements that can help make our software work even better for them. (No, seriously. Our CEO will give you his cell phone number!)
If you’re having any doubts about the financial viability of your software provider, don’t hesitate to reach out and have a conversation. We’re invested in the growth and success of our industry – even if you’re not a customer.
