With more IT Managed Service Providers (MSPs) entering the marketplace, many will also be going out of business. The competition is fierce. Darwinism will weed out those who aren’t cut out for this business.
Are you cut out to run an MSP business? The following are four signs that you may not be.
- You believe that your technical brilliance will afford you the success you’re looking for. If so you haven’t done your homework. You need more than technical background, you need to know how to run a business. Just like with any business, you need to:
- Establish your business model and what you’ll be providing to your clients.
- Determine your market. Will it be all small businesses in your area, or specific industry verticals?
- Define your competition. What do they provide and for how much?
- Set your pricing strategy so your services are affordable, but be realistic. You do need to make a profit.
- Ensure you have the staff and resources to do what you promise.
- You don’t believe that you need to consider the difference between sales and marketing, and the roles they both play.
- Marketing: This consists of a message, communications and vehicles to persuade prospects to use your services. It’s the message that prepares the prospect for the sale. Communications could be advertising, public relations, social media, relationship marketing, brand marketing, viral marketing, and direct mail. Vehicles are the way you distribute your marketing materials such as via the web, email, postal service, presentations, and more.
- Sales: This consists of interpersonal interactions with your prospects. It is often accomplished via a one-on-one meeting, cold calls, telemarketing, and networking. It involves anything that helps you engage with prospects to educate them about your services.
- You have zero understanding of business outside your technical world. If you lack basic business acumen and the understanding about the impact technology has on running a profitable enterprise, you can’t possibly convince a prospect to use your services. Do all you can to learn the business aspect of things. Do some reading about running a business. And do your homework about your prospects’/clients’ businesses.
- You think you are the boss. You’re not, your clients are. The great myth of MSP ownership or management is that you are working for yourself. Let’s get this straight—You are not your own boss, and you never will be. Hopefully you have many bosses. That means you have many clients.
If this is you and you are ready to make a change…but don’t know how. Ulistic is here to help. Call our team of MSP marketing and sales professionals. Our simple sales strategies have helped many like you achieve stratospheric success. Call 716.799.1999 today.