Tricks to Become a Managed Service Provider
A career in IT might be a lifelong dream, but the field is
so vast, it is easy to get lost in finding your career path. Starting your own
Managed Service Provider (MSP) can be overwhelming. One common mistake many
companies make is assuming customers will flock to their services instead of
actively seeking out new customers.
IT is a billion-dollar industry if you understand the
importance of fostering a good relationship between an MSP and the customer.
Whether you intend to have a small company with a few industry experts or a
large, national company, there are steps you can take to make sure your
business is successful.
10 Ways to Guarantee Your Company’s Success
A Managed Service Provider (MSP) works on behalf of
customers to manage their IT infrastructure or end-user systems. The MSP
agreement can be billed in a flat fee per user or per device or another
arrangement, depending on the needs of the customer.
The services provided can be data storage or more specific
markets, such as healthcare, financial, and legal services. Check out these
tips to start your business off on the right foot.
1. Don’t Undervalue Your Services
When you begin your business, your first instinct might be to
offer the lowest price to pull business from any competition. But that thinking
is outdated. Instead, offer your services depending upon your experience and
the quality of your work. Quality wins out over quantity for consumers any
If your company offers the very best services in that
specific field, shouldn’t your company (and the employees) be compensated for
those services? Sure, some consumers will head toward the company with the
lowest price, but an equal amount of customers will understand the necessity of
paying a higher price for a better value service. Basically – don’t sell your
2. Keep Up On Industry Trends
The tech industry moves at lightning speed, with new
products and technology coming out all the time. Your clients will expect your
company to keep an ear to the ground to provide them with cutting-edge services
at reasonable prices.
Information on the newest tech is found at trade shows,
online, or even within your local IT community. Part of your success depends on
your need to be the first to know so that your clients aren’t the last to
3. Market Your Company
Marketing is a taboo topic, but it’s also an absolute
necessity for any business. It helps spread the word instead of placing the
burden of customers, assuming they will chance upon your company. Your
marketing strategies will depend on the size of your company and the area your
One of the dreaded aspects of marketing is the cold call.
This is where the next tip comes in handy.
4. Find the Right Sales Leader
Not everyone is good at marketing, especially cold calling. While the cold call is just a small part of the marketing strategy, it is an essential one. The right sales leader should have the ability to master the cold call and the innate ability to teach the skill to the rest of the marketing team.
Selling isn’t the only responsibility a sales leader faces.
They need to have the ability to manage the marketing team. Not all salespeople
are management material, but all sales leaders need to be a great salesperson
to ensure company growth.
5. But Sales Train Everyone, Even the Owner
Most companies are divided and employed by category like sales,
IT, VP, etc. Many companies find success despite this fractured structure.
However, how can a manager find the best employees without having the necessary
knowledge in the job requirements?
Each employee doesn’t need to be an expert in every iota of
the company, but at the very least, they should have the basic skills and
understanding of the different areas of the company. Larger companies are
more equipped to have employees who are only knowledgeable in their specific
job. But sales training for all employees can only increase the company’s
6. Specialize in a “Vertical”
In business, a “vertical” refers to a small niche market a
company chooses to focus its products on to attract business from that market.
The downside of a vertical is there can be fewer clients to find, but the
clients you do find are often willing to pay top price for the best quality
Which again leads us back to tip number 1 – always ensure
that the quality of your services matches the price. If you don’t have a
vertical yet, you can find the best one for you by looking at your customer
base and choosing the common ground.
7. Don’t Overcomplicate Things
When you first begin your MSP company, you may veer toward
using the freshest software and building detailed processes. However, starting
simple is best and then working your way up to more complicated systems once
you have a secure client base.
Getting your company off the ground is the first battle.
Reaching new heights comes more comfortable once you’re already in the
8. Set Goals for the Company
Related to the previous tip – don’t have high expectations
out of the gate, but do have micro-goals to meet along the way. Building a
business is like building a home – it needs a sturdy foundation before you can
add more stories.
One of the first goals you should have at the beginning is to
focus on what you want to achieve – a million-dollar business or merely a
business that is profitable? It comes down to how much work and sacrifice you
are willing to put into the company. Once you have reached the goal, set another
one until you’ve made it to the height you set in the first place. I call
it the staircase to success.
9. Focus on Fostering Long-Term Relationships with
Any company starting from the ground up worries first about
getting enough revenue to keep the lights on. However, once your company has a
steady income, the focus should shift to keeping clients for the long term and
what you can do to nourish those relationships.
Many consumers have brand loyalty, and much prefer to stay
with one company if their needs are being fulfilled. Loyalty is fostered by the customer
experience, which is their overall interaction with a company whereas customer
service refers to a particular interaction of seeking assistance from a
10. Practice What You Teach
Routinely educating employees AND customers can enhance your
business. Educating your clients on the basics of IT can help increase the
productivity of your employees by allowing them to focus on more detailed
As mentioned above, keeping up on the latest in the tech
world includes training the company’s staff on the new technology or even
relying on the team for keeping abreast of new products and potential services
your company can extend to the clients.
Bottom Line: Have Your Ducks In a Row Before Taking the
Whether you have a pre-existing IT company and you’re
thinking of adding Managed Service Provider to your repertoire, or you’re
starting from scratch, growing a business can be ripe with failures before
success comes. It takes more than perseverance to see a company through hard
By offering Managed Services, a company will have a steady
revenue to build upon as they build confidence and enduring relationships with
clients. Following these tips will give your company a leg up on succeeding in
a competitive and very selective field.
When starting your own Managed Service Program (MSP,), you
want to do everything it takes to succeed. Follow these ten tips that will set
you off on the right path.