As more and more small and medium businesses (SMBs) rely on the managed IT services, the larger the opportunities this dynamic landscape is bringing to the break-fix companies that are planning to shift and currently in the move to becoming an MSP.
With the ever evolving IT requirements of small and medium businesses (SMBs), the more they are looking to their IT providers for an all inclusive solution. If your business model revolves around break fix, more than ever, now is the time to start considering the shift into the managed services space.
Given that the Australian IT services market is expected to grow to $23.4 billion by 2023 (IDC) , now is a perfect time to start considering and planning your transition from break-fix to the MSP model. So here are some useful points to get you thinking as you consider making the transition.
Changing your entire business model can be really painful. Trust us – we can relate as we have gone through a similar process before. If you want to be an MSP moving forward you have to start acting like one. This means not only creating new processes and goals but also sticking to them.
1. Forget the Past Behind and Start Thinking MSP
Here are some of the initial tasks you need to consider as you enter the MSP space:
- Build out your pricing models
- Develop your Managed Services Agreement / Contract.
- Revisit your services portfolio to ensure you meet all of the requirements of your new managed customers.
- Partner with the right vendors and suppliers
Speaking of working with the right vendors, Hosted Network works with hundreds of Australian MSPs. Checkout our Top 10 Reasons to Partner with Hosted Network whitepaper to see why so many Australian MSPs choose us as their supplier of cloud and telco services.
2. Educate your Clients
Lets face it, not 100% of your clients will initially suit your new managed services offering, some may not see the value in your new offering. To help sway them it’s important to get back to basics and mitigate any objections and one of the best ways to do this is through education.
Know the right way on how to approach the topic at your next meeting or catch-up. Clearly outline your value proposition and position yourself as a “trusted advisor”. As their trusted advisor you should be challenging them on all aspects of their IT systems and show them how IT can improve their productivity, security and profitability. Demonstrating this will encourage them to listen to your advice and suggestions in everything IT and show that you are not just who they call on whenever something goes wrong.
3. Know your Target Market and Be Proactive in Selling and Marketing your Solutions
As you switch to a bigger landscape, you will realize that there are lots of opportunities out there that you can jump on. But how do you know what to focus on? First, you must decide which target market you are going to concentrate on and start executing marketing plans on how you can bring in new prospects from these identified markets.
Many IT companies will have lots of different industries on their books however as you look closer you will typically see that you have naturally brought on a group of clients within specific industries. These industries are a great place to start as you will already know their pain points and by focusing on them it will help to tailor your marketing and sales strategies to better connect with new prospects within those industries. Additionally as you transition one from break fix to managed services you can leverage this to show your other clients the benefits.
In creating marketing plans, you should develop with content and messaging that is client-focused. Avoid talking about your products and solutions, instead discuss more about the value of your services and how you can help address your prospects’ pain points.
Now that you’ve brought in new prospects, what’s next? You must learn how to properly monitor all your deals and craft ways on how you can push closing sales. In sales and marketing, your right hand always needs to know what your left hand is doing.
This is all easier said than done especially for those of us who are more into technically focused than sales and marketing oriented. To guide you further, we have a couple of resources that can help you generate more opportunities and manage your sales pipeline.
4. Be Ready for the Bigger Picture
The IT space is a competitive market and is far from easy. Unfortunately you aren’t unique in the world of MSPs.
There are hundreds of providers out there who sell similar solutions as you do. So it’s critical that you find creative ways on how to add value to your offerings and level up your customer experience. Know when to listen, be intellectually intuitive and build solid relationships with your clients.
Adapting to anything new is always a challenging task, but if done right, you can have the power to open a lot of windows of growth and opportunities for your business.
Transitioning to an MSP is a journey and doesn’t happen overnight. If you’re thinking of making this transition or have already started we hope that this has helped you take the next step. If you’re facing any challenges please don’t forget that our team of MSP experts is always here to help.