There is any number of options for defining your MSP business model: by the size of the organizations that you target, the specific needs of your clients or by their line of business. There are pros and cons of each direction, but many MSPs are seeing the value in going vertical to focus on the complex interactions, security and privacy concerns of a particular line of business. Growing your business starts with a clear strategy in place that will help you define the audience you want to reach and how you will interact with each group. Here's a quick overview of the difference between specializing and becoming a true vertical partner for technology support. With IT services trending up in 2019, it's imperative that you find the model that works for your business.
What It Means to "Go Vertical" with Your MSP
When you select a specific vertical to focus on, you make the decision to go all-in for that particular business model. This could mean the painful decision to tell clients that you no longer are able to work with them and will help them transition to a better partner. It could mean that you turn down business that is not in your selected vertical. All of these decisions are hard, but many IT MSPs are finding that the effort pays off. Once you have a solid posture within the community, you're much more likely to get the type of business that you're prepared to handle and that will help you scale your business in the future.
What It Means for Your MSP to Specialize
When you specialize, your teams may work with a variety of different clients. Not just any clients, mind you, but the clients that fit within the areas you've decided to specialize. This means that although you have a thriving business in the legal industry, you may also choose to work with a range of clients in healthcare or dental industries, too. This is dramatically different from pursuing clients in every possible industry -- you're still making a conscious decision that there are specific businesses where you want to place your focus. While specialization may not seem quite as targeted as verticalization, it may allow you to tap into specific pockets of need in your community. With Forrester posting an increase of 5% increase in the need for IT services in 2019 and beyond, this potential appeals to a range of service providers.
Have you decided which is right for your business -- specializing or "verticalizing"? Often, the decision depends on the size and focus of your business and your personal preferences. There are no right or wrong answers, but it's important to note that you're not truly considered a vertical MSP if you specialize in more than one industry. Want to dig into the details of why many MSPs are going vertical? Contact Stuart Crawford, Managing Partner of Ulistic, today at 855-964-2608 for a 60-minute free consultation.