I had an interesting conversation with one of our IT managed services customers the other day.
We were discussing the journey he took as his IT managed services company grew from a one-man show to an 18-person managed services company with $3 million in revenue in just a few years. He said it was a tough transition, but it was worth it. However, what struck me was the motivation behind transforming the business.
Here is what he said: “I had been working for years in a break-fix model and was making enough money to be comfortable. Then it occurred to me. I had built a nice job for myself but it was far short of a business. And that’s what I really wanted. I wanted to build a business, and I knew that I had to get serious about managed services.”
It was the perfect light bulb moment. He had built a job but wanted a business.
Based on our work with thousands of MSPs worldwide, making the switch to MSP is worth the time and effort because MSPs are approximately 200-400% more profitable than non-MSPs. And MSPs are 3x to 10x more valuable than traditional VARs.
But as I’ve said before, its not easy. A successful managed service provider (MSP) business is reliant on a solid business strategy and service delivery model as well as finding the right technology for your needs. We can help you understand the steps you need to take in order to get started, all rolled into a 21-page IT managed services eBook that will will help you:
- Develop and execute on a solid business strategy for running a managed services company - Companies that get the business part right and flub the technology part won’t grow very fast but will chug along and survive. On the other hand, service providers that use the right technology but can’t handle growth or manage daily operations will most likely fail. However, it’s companies that get both the business right and choose the appropriate management solution for their needs that are wildly successful. Running the business the right way is that critical. Read our 6 tips that you can use to build a profitable business model.
- Choose the right IT systems management solution to help enable your vision – The managed services business model is enabled by the technology you use to deliver IT services to your customers. However, there are dozens of solutions. How do you choose the right one for your unique needs? IT systems management solutions come in several flavors based on the software’s architecture and we provide a summary – including feature and cost comparison – of the 5 common types of tools available.
- Price your managed services fairly, competitively, and profitably - How do I price my managed services effectively? It’s the most common topic among our thousands of MSP partners worldwide. Using data from real MSPs, we provide you an insider’s look and a data-rich analysis of pricing scenarios used by a variety of service providers in various stages of the MSP development track. We give you step-by-step calculations to help you understand how to determine your operating cost and we provide you with a few pricing scenarios to help you understand business impacts and profitability analysis. Once you understand these data, you can leapfrog your peers (and truly deliver value to you clients) because you will gain a better understanding of cost, profit, and MRR/project/T&M portfolio calculations and analysis.
- Avoid some common pitfalls – Do you need a crystal ball on your MSP journey? Learn from your peers as they share 4 common MSP traps to avoid so you can fast-track your success.
- Understand the benefits that come with implementing managed services correctly – Read a case study to understand how an IT service provider successfully rolled out managed services for its customers and transformed into one of the largest MSPs in the country.
So, take a walk with us. Read this free eBook Starter Guide to IT Managed Services and learn more. Turn your job into a business. You won’t be disappointed.