Acquisition

Posted by jason

A client hired one of my favorite developers late, last year. This put i5labs into a bit of a tailspin, and me, into conniptions.

I immediately found contractual clauses which make poaching unfavorable to a client, and that addresses one, immediate, issue.

The most daunting problems for any small company are growth and employee turnover. Generally, i5labs employees stay 2-3 years, which is pretty good for the technology industry. The smaller the company, the greater the proportion of institutional knowledge stored in each employee. Documentation and being on great terms with your employees help, as they both transition future employees.

As a service company, revenues tie directly with the ability to handle workload. In the past, I'd start with contractors, and hire them into full time employees. That doesn't help with the burden of constantly searching, and worse, searching in a tight labor market.

I took an unconventional approach to address growth. On January 31st, I acquired Baldwin, Forrester & Company, a technical recruiting firm. With some smart cost-cutting, and infrastructure investment (say, a website that doesn't suck), the numbers should be excellent, as it's a heady year for growth in the Bay Area.

There are so many benefits for i5labs. There's a constant stream of developers, resumes, and candidate profiles flowing into the company - I can grow for any project, and I have the manpower to start any company for which I have the time. I've never had this kind of flexibility before, and it feels good.
Comments

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  1. Warren NoronhaApril 15, 2007 @ 03:12 PM
    Good luck with your new venture... Hope it does well. Warren
  2. ThomasMay 08, 2007 @ 11:44 AM
    Wow thanks! I’m a regular reader and enjoy your work. Keep it up!
  3. Tomasz GorskiMay 28, 2007 @ 11:57 AM
    Thanks for very interesting article. btw. I really enjoyed reading all of your posts. It’s interesting to read ideas, and observations from someone else’s point of view… makes you think more. So please keep up the great work. Greetings
  4. tinaJune 22, 2007 @ 02:01 PM
    i5labs looks pretty bright.... and entice to itself... :)
  5. k-netAugust 19, 2007 @ 07:32 AM
    Congratulations, Jason! Wish you all the best in your new role.
  6. Nick MayerAugust 27, 2007 @ 08:13 AM
    HI ! Thanks for very interesting article. Good luck with your new venture!
  7. plasticFebruary 23, 2008 @ 10:08 AM
    Good job man ;) thank you