Homework, diversity, patience and trust

I recently was asked to be part of a panel discussion on starting a records and information management (RIM) business. To prepare for it, I surveyed PRISM members.

First, our members strongly suggested that people looking to enter the RIM industry do their homework:

• Join PRISM; its conference represents 10 years of learning in three days.
• Connect with and learn from those who are successful.
• Research the industry and the market potential and have a solid feel for the trends.
• Understand how you can best serve customers’ information management needs; provide solutions, not just transactional services and pricing.

They also suggested diversifying revenue streams:

• Balance your client mix among multiple verticals as well as large and small accounts.
• Look hard at including value-added services, such as courier services, hard drive shredding and more, and construct a comprehensive records management solution.
• Consider digitizing services in parallel to storage.
• Finally, our members told us that, like many new businesses, capital and patience are keys to success:
• Frequently revisit your forecast and add more time before you expect to become profitable.
• Don’t underestimate the entry costs of this business. It is capital intensive and needs to achieve economies of scale to turn cash positive.

In response to the question, “What is unique about this industry—what does a new person in the industry really need to know?” we heard:

• It’s important to know compliance requirements and how to keep records truly safe, secure and accessible.
• This industry can provide a constant, nice revenue stream.
• The people are great.
• Confidentiality and trust are cornerstones in this industry.
• It’s a great industry; it’s changing, but that’s one of the things that makes it exciting.

Many of these responses described the people in the industry. That’s why, in the midst of all this change, I’m bullish about the RIM industry. Good people always will be in demand, and trust never goes out of style.

Dave Bergeson is the executive director PRISM International, Chicago, and can be reached at dbergeson@prismintl.org.