How to Be an Effective MSP from the Start

Effective MSP from the Start

Running a robust business takes a lot of time and money, but not every task has to be tedious.  With so many companies outsourcing their IT department, managed service providers (MSP) are becoming more important to all types of businesses. The best MSP must be ready to make sound decisions swiftly.

Here are three helpful tips in building a strong MSP:

1. Determine and Limit Initial Services 

There are a lot of services an MSP can provide, but an MSP that tries to provide them all only adequately may fall short completely. This is especially true at the opening of an MSP. Choosing one main focus early on will help the business grow. More services can always be added later.

Focused areas of service can range from information technology and data storage to a focus on vertical markets in law, health, and manufacturing. Having a specific focus allows customers to understand what they are getting and allows for the team to specialize in what they do best.

2. Understand Pricing and Cost Management

Pricing is tricky in all business models, but the nature of MSPs makes pricing particularly complex. Finding the right balance of how services should be priced is difficult. A price too high will turn away customers, but a price too low impacts the capabilities of the MSP.

It’s important to choose a pay model and stick with it. The MSP can charge a per-device flat fee in which each device a customer adds raises the price they pay consistently. This allows customers to use what they require and add to it as their needs expand. Similarly, an MSP can utilize a per-user model in which one user can utilize multiple devices. This style offers cost effectiveness for a customer with multiple devices.

You might even try offering an all-inclusive package deal. This is an umbrella price model that offers all the services the MSP has to the customer for one flat rate. That said, it is important to note that utilizing this pay model can add more strain to a fledgling MSP and is best incorporated once the MSP has grown large enough to comfortably provide this model.

3. Become Fully Educated on the Nuances

 The best way to properly prepare oneself for running an MSP business is to do the extensive research that it requires. Resources such as The Guide to a Successful Managed Services Practice” help you navigate these new terrain and show you what success looks like. In terms of what you need to grasp fully, you should read up on the difference between RMM vs PSA, all possible services (even the ones not being utilized), cost effectiveness, and even standard business practices such as payroll.

Above All Else, the Most Effective MSPs are Individualized

Unfortunately there is not a true simple list on how-to build and run a business. That said, the three tips offered above are an excellent place to start. It is important to note that professional needs vary from business to business and even from department to department, so it’s wise not to stay committed to one rigid model. Want to learn more about how Liongard can help you set your MSP up for success? Sign up for a free demo with our team!

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