Blue Apache has made the Smart Company Smart50 List for 2010 debuting at number 37. The Smart Company Awards discover and recognise Australia's smartest entrepreneurs who are changing the business landscape. A panel of Australia's best entrepreneurs and experts judge the winners.

Blue Apache Pty Ltd

Smart50 rank: 37
Growth: 39%
Founder: Chris Marshall, 32
Head Office: Victoria
Employees: 20
Industry: Information technology

The best thing that ever happened to IT services company Blue Apache was losing their biggest customer, says founder Chris Marshall.

Like many start-up businesses, the company used to derive over 50% of its revenue from a single customer.

"One year, the inevitable occurred when there was no 'golden goose,'" says Marshall.

"As a result, we had to downsize and work on defining a strategy which ensured we kept enough new business coming in."

The episode provided a great lesson.

"From then on, we asked ourselves: how can we reduce risk and improve cashflow? Today no customer delivers more than 15% of total revenue."

Blue Apache delivers outsourced IT infrastructure solutions catering to the needs and budget of the SME market. Started in 1998, the home start-up today brings in over $4 million in revenue and has an average annual growth over the past three years of 39%.

Marshall says the company's biggest challenges were the unforeseen growing pains that plague many SMEs.

"We lacked the management insight to recruit the right people, retain the right people and deal with problem staff," says Marshall.

"When we removed problem staff and took more care in the selection of new staff, morale improved rapidly.

Another issue was simply getting the right physical infrastructure for the business.

"In the early years, it took two attempts to expand beyond the home office, to set up a formal base and a small team."

Marshall says in an industry where technology and market conditions are always changing, planning ahead with short- and long-term goals is crucial.

"If you aren't growing and/or moving forward, you are going backwards. Once we paid more attention to our Christmas party than what targets we would set for the next year, or how we should enhance our skill set and retain our people."

"Now our executive leadership team conducts quarterly reviews where we take stock of the previous quarter and look ahead over the next three years."

What is the biggest thing Blue Apache has learnt?

"That we aren't a technology or professional services business; that first and foremost, we are a customer service business. There's a big difference: we can have the best solution architects and account managers, but it's our service desk by which we are judged."