Rich Lee, CEO of Hosted Solutions, provided a capacity crowd with some helpful hints on “being opportunistic”, and building your business “one customer at a time”. Founded via a self-financed $375k acquisition of a single, failing data center in 2001, Rich’s company recently received a $144m private equity investment from ABRY Partners, in support of their efforts to fully scale the business.
As it stands today, Hosted Solutions is comprised of five data centers, with expected revenues of $50m. “Perseverance, and leaving your ego at the door”, reasons Rich, allowed his company to survive the difficult, early days. As 9/11 occurred some two months after purchasing the struggling and debt laden data center, their focus upon hitting “singles and doubles”, he adds, provided them the necessary cash flow to survive.
Focusing for the next five years upon execution, Hosted Solutions continued to be opportunistic, “purchasing rather than building” capacity, for cents on the dollar. “Using other people’s balance sheets” allowed the original equity investors to limit dilution of their positions, as well as determine and time their exit strategy.
While the events leading to today’s economic predicament are different than those experienced by Rich and his fledgling company in 2001, the opportunities and the methods to capitalize upon them are much the same. Put a talented and committed team in place and “replicate over and over the basics to winning business one customer at a time” and never “get ahead of your ski tips”.
About Power Breakfast-In-The-Park
In conjunction with Business Leader Media, and the Council for Entrepreneurial Development (CED), Accentuate Staffing hosts a monthly breakfast meeting at the Brier Creek Country Club, to present influential community and thought leaders, as well as offering an opportunity to network. In the spirit of lifelong learning, it is our goal for each attendee to put into practice, at least one compelling concept, idea, or action, within the immediate 24 hours, to help differentiate their company and / or their career.
