PBN- Small Business Strategy

One of Hawaii’s fastest-growing companies turned to outside help when it saw its revenues decline last year.

The verdict: It was spreading itself too thin and was losing focus.

Hawaii Tech Support saw its revenues rise by almost 300 percent between 2007 and 2009, placing it third on PBN’s list of Hawaii’s fastest-growing small businesses. It followed that up with 66 percent growth between 2008 and 2010, landing it at the No. 24 spot on the list as revenue topped $1.2 million.

But the rapid growth would not last. Revenue fell to about $800,000 in 2011, prompting CEO to look for help.

“Honestly, 2011 was a pretty rough year for us,” Lau said. “We were trying to do too much, instead of focusing on what would make the most sense to do.”

The company had been providing services in three main areas: government work, commercial clients and computer repair. The assessment by Akamai Capital LLC showed Lau that focusing on commercial clients would provide the company with a higher gross profit than if it continued to provide services across the three areas.

Hawaii Tech Support’s commercial focus now is to provide IT services for businesses that typically have between five and 50 employees in industries that rely on technology, such as law, engineering, architecture and finance.

While the company’s revenue dropped by nearly 35 percent in 2011 compared to 2010, its gross profit grew about 7 percent, which Lau attributes to the shift in business focus. He is projecting revenue of $900,000 this year.

The assessment provided hard numbers to support Lau’s thinking that focusing on the commercial industry would be best for business. It also showed how hiring another person would impact the finances — both costs and benefits — and it looked pretty good, he said. So, he hired another full-time employee to join the technician team.