Inside Track Q&A

Paul Hourican, chief executive, PFH Technology Group

What’s unique about your business?

None of the products we sell is unique. What is unique is how we do things. We take a very customer-centric approach to ICT. It’s the “how” we do things, not the “what”. Our ethos is around solutions that show you a better way of doing something and that’s cheaper.

How difficult was it to launch the business?

It wasn’t! What compensated for all the difficulties was energy and enthusiasm. I had absolute confidence in myself at the time, and didn’t think too much about it. It was about just getting on and doing it; I didn’t allow myself to think of the potential downside.

They say the male brain doesn’t process risk until you’re 29, so I’d say start the business before then! I started in 1985 when I was 24.

What was the big break for the business?

The tipping point came around the late 1990s. Until then, we were principally selling accountancy solutions to SMEs [small and medium-sized enterprises], but then we got into networking and started getting accepted by multinationals, particularly in the pharma sector. Being exposed to a highly regulated, demanding industry allowed us to develop our skills. It also gave us the confidence. Up until then, we had turnover of about €8-€10 million, but our latest was €50 million.

What advice would you give to anyone starting off in business now?

What I’d say is have a plan and have a few key objectives. Don’t plan yourself out of existence, and get customers to buy your services. Measure yourself and be your own best critic.

Based on your experience in the downturn, are the banks in Ireland open for business to SMEs?

We have never used bank funding and, in my opinion, banks by their nature are not lenders to SMEs. There’s nothing different about today than how it was in 1985. When I started, it was really, really tough and money was hard to come by. I started by convincing a leasing company to give me an advance of £5,000.

How is the recession impacting on your business?

Decisions are taking longer to make and pipelines are taking longer to convert into orders. We’re very focused on our strategy and leadership, about keeping belief in what we’re doing.

It is tougher out there. Because of the acquisitions we’ve had in the past two years [it acquired Siemens Enterprise Communications Ireland in May 2010 and Redstone Technology Ireland in November 2010], our revenues have gone up, but overall net revenues have fallen. Our strategy is now much more service focused because technology pricing is being eroded, so our strategy is focused on service.

But against that, it certainly was the right time for us to do it [acquire Siemens and Redstone]. It was the next step in our growth, because indigenous growth is very difficult in a recession.

What was the best piece of business advice you’ve ever received?

Don’t forget the ultimate aim is to provide a product or service that delights the customer. If you start internalising, you’re dead. You have to ask “what’s this going to do for your customer?”. If you don’t have a customer, you don’t have cash coming in.

What’s the biggest mistake you’ve made in business?

Delaying important decisions. The best thing is to make a decision and then move on, and be prepared to accept that some decisions will be wrong. Not making decisions because they might be wrong is a mistake.

Who do you most admire in business and why?

Steve Jobs, because of his absolute focus and ruthless attention to detail. Also, the simplicity he brought to his business.

How do you see the short-term future for your business?

Our strategy between now and 2015 is to grow from turnover of €50 million to €80 million. That’s very doable in Ireland, initially through more indigenous growth through provision of new services.

Whats your business worth and would you sell it?

We’re in a unique position for growth. The company must be worth a lot, but it’s hard to say how much as multiples vary in our business. I dont think Id sell. I think I’m enjoying the challenge at the moment; I dont know what Id do with the money!

In conversation with FIONA REDDAN