A couple of years ago, in the time between Christmas and New Year’s, (our typical slow season), Erik had some time to take a deep look into the company’s books. He wanted to see if he could predict how much money the business would make in the coming year based on the contracts we had in place. He looked at the sources of revenue for that year. At the time in 2017 we had four main service categories:
He found that out of the four services three of them were predicted to lose money in 2018. It was pretty shocking when he discovered that just to break even and have zero growth in software development he and Kevin would have to secure $700,000 in new software contracts and soon! At the time we still had a couple of software developers on the team and only about two months worth of contract revenue to cover their salaries. On the other hand, we had one full time employee working on digital marketing and numerous contracts for digital marketing services that more than covered his salary. If we could find more work like that, that included a nice profit margin, things could be very different.
Erik knew he had to do something and do something fast! On December 27th, 2017 Erik had the conversation with Kevin and told him his findings. It was the first time they realized they needed to make a change in their business and the change was focusing on digital marketing.
That conversation spawned several more to come in the following weeks. It took about a month before the ultimate decision was made to phase out the other services and focus 100% on digital marketing. And, it was the right one for us. At this point, that is all we do.
Erik J. Olson is an award-winning digital marketer & entrepreneur. The Founder & CEO of Array Digital, he is also the host of the Journey to $100 Million Flash Briefing and daily podcast, and the organizer of the Marketers Anonymous monthly meetups.
Kevin Daisey is an award-winning digital marketer & entrepreneur. He started his first company when he was just 23, and is the Founder & CMO of Array Digital. Kevin is the also the co-host of the Journey to $100 Million Flash Briefing and daily podcast, and the co-organizer of the Marketers Anonymous monthly meetups.