Not many MSPs make to World Class status, and the gap between average MSPs and top performers is widening. World Class MSPs are able to generate higher profits, even though they offer basically the same services their competitors do. The difference is that they take a strategic approach to running their business.
Explore these five features common to all World Class MSPs and learn how your business could improve in these areas.
1. A Business Plan
Many MSPs have been operating without a business plan for years. Your MSP business plan is the compass to guide all your decisions for the future. With this plan, you need to answer important questions about your MSP, like what are the company goals and what should we do to make those goals a reality?
2. Command Of Operations
Before looking externally to how you service your clients, look internally to how your MSP operations could improve. Most MSPs are bogged down by IT tickets, unable to operate efficiently because they’re so reactive.
Take command of your MSP KPIs (key performance indicators) and work to improve them. Bring your team together to assess where you could improve operations. Look specifically at the areas of packaging, pricing, service delivery, sales and accountability.
3. Sales Focus
Are your MSP sales numbers where you want them to be? Unless you’re a World Class MSP, you’re probably struggling to generate the monthly recurring revenue needed to break through the “average MSP” category.
Refocusing your sales efforts increases your effectiveness and helps you generate more MRR. Instead of selling your services, reframe your clients’ understanding of your offering. You’re a partner, helping them achieve their business goals with the strategic IT direction you provide.
4. Effective Packaging And Pricing
MSP pricing is something a lot of IT service providers get wrong. Packaging and pricing your IT services the right way could catapult you to World Class status, while continuing to do it the wrong way could send you into an unprofitable downward spiral. It’s all about leverage – the relationship between an hour worked and a dollar billed to your clients.
World Class MSPs charge more for their services because they’re packaged to focus on the end result, or the long-term benefit for the client. Take a closer look at your packing and your MSP pricing model and evaluate how effective it is.
Ensure your processes are aligned first throughout your company and then across all of your clients. Instead of reactively addressing issues both internally and with your clients, use processes to identify needed improvements early. Don’t make the same mistake many average MSPs do: taking a reactive approach to servicing clients.
For example, proactively update clients’ software to mitigate bugs, instead of reactively addressing problems when an IT ticket comes in. Keeping your clients’ technology aligned with your MSP standards saves time and increases profitability.
If your MSP is lacking any of these five features, it’s time to reassess areas of weakness and work to improve them. You’ll boost your chance of reaching World Class MSP status and increase your profitability.
Learn more about how to become a World Class MSP in this free webinar.