The majority of MSPs grow their businesses by around 10 percent each year. Meanwhile, others manage to grow by 20 percent or more. So what separates those two groups of IT professionals? Having spent most of my time traveling the globe, working with some of the world's most successful MSPs, I’ve learned some of their highly effective business strategies for experiencing rapid business growth. Here are four of my favorites.
1. Define + Adhere to Processes
MSPs who deliver consistent results to their customers are seeing more business come through the door. They are also reaping the benefits of this internally, particularly with employees. Workers with clearly documented processes and procedures are more likely to see the value in their role and understand what is expected of them. This brings structure to the workplace and gives employees the answers to the “who’s” and the “what's” when making decisions. This also keeps a business running smoothly in the face of employee turnover. Customers also benefit when they receive support from multiple employees whose answers are aligned with one another.
2. Be The “Go To” Guy/Gal
As the saying goes, “A jack of all trades is a master of none.” The same can be said for an MSP whose technical offerings span farther than their ability to deliver strong technical results. While it’s understandable that MSPs want to take on more and more business, there is a way to reach more customers without offering more technology than they can maintain in the long-run. An MSP who becomes a technical master in a single offering can become well-known among various verticals. This is a better approach for an MSP looking to capture more business.
3. Say ‘Yes’ to Recurring Revenue
As SaaS adoption continues to grow across businesses of all industries and sizes, customers are shifting to a “services mindset” when it comes to purchasing. Successful MSPs recognize this shift and are embracing recurring revenue models. After all, today’s customers don’t want to be hit with huge upfront costs. They also don’t want to maintain ownership of heavy IT equipment that often takes up quite a bit of office-space (i.e. servers, end-user devices, etc.). MSPs also benefit from recurring revenue, because it provides a steady, long-term income. Additionally, customers stay top-of-mind when they’re making payments each month, which results in better customer service.
4. Take it Slow and Steady
MSPs who prioritize building a great relationship with their customers fare much better among their competitors. This is because they are knowledgeable about what makes customers feel valued from the start. An MSP who tries to attain a huge chunk of business from a new client often comes across as greedy and can yield poor results when implementing the technology or services promised. MSPs who start small and steady with new customers are better at delivering what they promise, building that essential initial trust with their end users. This also leaves room for future growth as they gain a better understanding of their customer’s IT needs.