Phone  972-449-0899


Getting into the Business of Managed Service Providers

calendar  April 22, 2020

Starting a Managed Service Provider company is certainly not for those who are new to the business. Oftentimes, they are old hands that have worked a long time in their chosen crafts, whether it be in IT, App development, or Marketing. But it is one thing to know about your craft, it is a whole other ball game to manage a whole business.

If you are keen on getting into the business of MSP, here are some challenges you might face and things you can take into consideration when starting your own company:

Breaking into the Market

First thing to consider is the service you will provide. Also, will you be offering IT consultancy and helping small to medium-size businesses set up their infrastructure, or will you be offering Web Design and Digital Marketing to boost their brand presence?

Another thing worth noting is that there may be other MSP companies in your area providing the same service. There are two ways to approach such situations: either you compete and offer something that will entice businesses to go to your rather than your competitor, or you can collaborate with them and share the market. On the latter one, you can offer a service that the other MSP may be lacking, so you can complement each other and bring more business in for both of you.

If you are planning to pursue IT consultancy, another avenue for you is to offer IT Quality Assurance services; basically, you check their existing infrastructure to see if there are any issues, or certain processes that can be improved upon. If they are impressed with your work, you might have a potential client in your hands.

If you are an App Developer, another way of getting into the business is to treat other MSPs as your client. You can develop apps that can speed up or automate some processes for them, or develop something you think is lacking in the trade.

MRRs: an MSPs bread and butter

Should you decide on pursuing the business, you need to also think about clients: where are you getting them, and what type of clients they are.

Depending on the service you provide, your main goal is to get clients that generate Monthly Recurring Revenue (MRR) for your business. This will be your main source of stable income as an MSP. While getting one-time projects and some repeat ones from certain clients could help boost your network within the industry circles, relying on that will result in an erratic flow of income on your end, and may not be sustainable in the long run.

Certifications versus Experience
When selling yourself to clients, it would be best to highlight your experiences in the field and past works rather than certifications that you may have gotten. While certifications and accreditations look great on paper, what businesses are really looking for are those that can solve their problems, usually by having encountered it themselves and creating solutions for it.

© 2022 - All Rights Reserved