Despite the recessionary environment, Everything Channel's recent survey of 117 solution providers found that many were optimistic about steady growth this year. Breaking down therespondents into categories, 33 percent of the VARs in our survey identified themselves as "growth" VARs -- expecting moderate growth of between 4 percent and 14 percent greater than the market as a whole. Thirty percent classified themselves as "hypergrowth" VARs -- predicting better than 15 percent growth. Twenty-five percent identified themselves as "lifestyle" VARs -- intending to keep pace with the market and increasing or decreasing revenue by 3 percent. That number is up 6 percent from 2007. Twelve percent said they weren't focused on growth, down 6 percent from two years ago.

Part of the reason for all that potential growth might actually be those corporate cutbacks, VARs said. Several VARs said their business was thriving because they could offer their customers ways to do more with less. Such productivity-enhancing solutions are quickly becoming this season's best-sellers.

Joel Schleicher, CEO of Presidio Inc., Greenbelt, Md. (2008 VARBusiness 500 rank: 69), said, "Entrepreneurs tend to be optimistic." Here are seven ways these optimistic VARs intend to beat the odds.

1. Find New Customers

The leading way VARs plan to expand their bottom line is by cultivating new business. Overall, 77 percent of VARs said it was critical to their success.

"Finding new biz is categorically the most important thing," said Mike Shook, CEO of Consonus Technologies Inc., Cary, N.C. (2008 VARBusiness 500 rank: 261). "We have a whole team focused on new customers. You've got to go to a new tier at some point. We think about our coverage model. We want to protect the accounts we have, but we also need to net new [ones]. For example, we've had a great relationship with Sun for years, but not a lot of people are buying Solaris. So, you've got to figure you need to get more customers."

Nearly 40 percent of participants overall responded that they would be targeting new markets with existing solutions and expertise (36 percent hypergrowth vs. 42.6 percent growth VARs). An additional 28 percent said they'd focus on new customer/size segments (33 percent hypergrowth vs. 23 percent growth VARs). Many of those new customers are likely to come from the midsize market, research shows.

2. Manage Finances

Successful VARs know how to manage cash flow. Indeed, 59 percent of the overall sample said that solid overall financial management was crucial.

Sixty-five percent of hypergrowth solution providers tend to finance their businesses through personal loans, while 54 percent of growth VARs plan to do so through business credit cards. As some banks' lending practices have become more restrictive, VARs have reached out to vendors for help.

"Cash flow is becoming more critical than ever," said Katie Spence, director of U.S. partner marketing at Hewlett-Packard Co., Palo Alto, Calif. "Our new commercial target program provides financial benefit up front. Our partners know going into the deal what is on the table in terms of margin and that helps drive sales. We also offer financial incentives for investing in certain technologies, such as thin clients and virtualization."

Top obstacles to growth are also centered around the ability -- or inability -- to properly manage cash flow. By a landslide, the most often cited challenge (74 percent overall) is that customers are delaying purchases.

3. Set Actionable Goals

Having a clear path to follow is beneficial, said 57 percent of VARs. Hypergrowth VARs were even more interested in articulating goals -- 67 percent said it was important. Often, goals center on extending the sale -- building solutions around a product with a lot of "drag, "or its ability to pull other products into the sale.

"Bring in peripheral services. E-mail-archiving solutions put servers on, storage on -- the thought process is: 'Let's build a solution.' That way, a $500,000 deal constructed as a complete solution becomes a $1.5 million deal," Shook said.

4. Get In Tune With New Tech

Thirty-three percent of hypergrowth VARs and 31 percent of growth VARs said finding technology -- specifically, the next killer application or product -- was one of the top factors for growth. Retaining employees who are trained in that technology also is very important. Overall, 32 percent of solution providers said finding the right technical and consulting employees was high on their list of priorities.

Almost half of VAR respondents overall said improving customer service was vital during the next 12 months. Hypergrowth VARs found it even more important: 57 percent considered it crucial and 55 percent of growth VARs agreed.

"Customer care is critical to our business in any economic climate; however, in a recession, staying close to your customers is probably the most important thing your company can do," said Dan DiSano, CEO of New York-based Axispoint Inc. (2008 VARBusiness 500 rank: 481). "Though you are always searching for business with new clients, your current customers are your lifeblood and growth begins with them."

Knowing what technologies will benefit the customer's business -- before they realize it themselves -- is key.

To that end, Symantec Corp., Cupertino, Calif., last fall launched SymBrain, an online tool that helps VARs create an upgrade road map for their customers. "The VAR can key specific terms into SymBrain, like server consolidation, OS migration, server migration," said Randy Cochran, vice president of channel sales for the Americas. "SymBrain comes back with qualified products and the questions you should be asking as well as white papers and other things to make a presentation. So the partner can go back to the customer and have a discussion to set the stage as to what they can sell them in the next six months."

6. Invest In Training

Although many VARs will increase their training efforts, doing so can eat into the budget. Thirty-nine percent of VARs overall said they consider technical training a critical growth factor, and 31 percent said the same of sales training. Still, VARs are wary of spending on travel and on anything that doesn't directly benefit their bottom line. And vendors hear them.

"HP has developed a new program that ultimately reduces out-of-office time, but still offers appropriate mindshare," Spence said.

7. Manage Your Vendors

While the days of "captive" solution providers are largely gone, VARs do still have go-to suppliers they can count on for price breaks, technical help and financial assistance. Managing vendor relationships was considered a critical factor by 38 percent of solution providers.