Top Ten Tricks to Becoming a Managed Service Provider

Top Ten 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 But that thinking is outdated.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 day. 

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 services short.  

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 know. 

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 services cover. 

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 revenue. 

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 work. 

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 air. 

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 Clients

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 company. 

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 work. 

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 Plunge

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 times.  

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. 

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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.