Before You Start Your MSP Business<\/h2>\n
Before you can start providing managed services<\/a>, you need to establish your business. Common steps in the process include:<\/p>\n If it\u2019s your first business, remember to keep your documents and records in order. One day it will save your life.<\/p>\n You\u2019ll also want to think about which services you can offer most effectively and cost-efficiently.<\/p>\n Further reading<\/span>\u00a0MSP Packages: How to Build Your Offer<\/a><\/p>\n There are many different pricing models<\/a> and strategies that MSPs can follow, each with different advantages and drawbacks.<\/p>\n At a high level, MSP pricing strategies can fall into one of two categories.<\/p>\n <\/p>\n <\/p>\n <\/p>\n You can, of course, use a combination of All You Can Eat and break-fix pricing. In fact, that is what the majority of MSPs do.<\/p>\n For more tips on developing an effective pricing strategy, refer to the following guide:<\/p>\n Further reading<\/span> MSP\u2019s Guide to Pricing<\/a><\/p>\n There are multiple tools available in each category. The specific solutions you decide to use are up to you, but you\u2019ll want to spend some time as you start your MSP business on evaluating different options and weighing their costs and benefits.<\/p>\n If you\u2019re considering adding a new MSP backup software<\/span><\/a> to your <\/span>MSP software<\/span><\/a> stack, take a look at MSP360 Managed Backup. With this solution, you can enhance multi-tenant management, allowing your business to scale easily without sacrificing time or user experience, and avoid vendor lock-in, since MSP360 lets you bring your own storage.<\/span><\/p>\n If you\u2019re currently managing fewer than five devices or are just getting started, MSP360\u2019s <\/span>cloud backup solution for small businesses<\/span><\/a> might be the right fit for you. It allows you to conveniently manage smaller yet diverse environments with ease.<\/span><\/p>\n Fortunately, finding MSP clients is not as hard as you might think. There are a variety of strategies you can employ:<\/p>\n For more tips on landing your first customers, see our article on the topic:<\/p>\n Further reading<\/span> How to Get MSP Clients<\/a><\/p>\n For more onboarding tips, check out the following guide:<\/p>\n Further reading<\/span>\u00a0MSP\u2019s Client Onboarding Checklist<\/a><\/p>\n The transition from a break-fix shop to an MSP requires strategic planning, a maturity of operations and services, and a thought-through offering. The transition requires some basic steps you need to go through to get from break-fix to a full-on managed IT.<\/p>\n When preparing your proposition, remember \u2013 your clients are not as tech-savvy as you are. Make sure that your services form a quality package<\/a> and you know how to tell your customers exactly how helpful these services are to business processes and operational efficiency.<\/p>\n You won\u2019t transfer all your break-fix clients to the new business model, but there is a chance that some of them can be transferred to the managed IT model. Here are several approaches that you can try:<\/p>\n Starting a managed service provider business requires a lot of careful work, from setting a pricing strategy to marketing your business, and beyond. But the difficult planning process is worth it because it will help you avoid issues in the long run by ensuring that your MSP business is set up for success from the start.<\/p>\n\n
Develop Your MSP Offering<\/h2>\n
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Another basic step in starting an MSP business is to define which specific technical services you will offer, and how you will bundle them together. Although you may be able to perform a range of technical services, it\u2019s important to determine which ones will bring you the most business at the most profitable rates.
\nOne factor to consider in this regard is which MSP services are in greatest demand in your area. If the local market for managed network services is already saturated, you may want to avoid including those as part of your business and, instead, focus on other services (such as managed backup or managed security<\/a>) that are in greater demand.<\/p>\n\n
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In most cases, you\u2019ll decide to offer more than one service. So you need to determine how to combine your different services into a single package, or bundle. As we explain in our guide to MSP packages, bundling makes service offerings easy for customers to understand and consume, while also simplifying things for the MSP.<\/p>\nDetermine Your MSP Pricing Strategy<\/h2>\n
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The first is \u201cAll You Can Eat<\/strong>\u201d pricing. Under this model, you charge a certain price to deliver a service for a certain amount of time (such as a month or a year), and the customer can consume as much of that service as they choose during that time. All You Can Eat prices are typically set based either on the number of devices you will be supporting or the number of users.<\/p>\n![\"Break-Fix](\"https:\/\/www.msp360.com\/resources\/wp-content\/uploads\/2019\/07\/Break-Fix.png\")
The second overarching pricing strategy is break-fix<\/strong>. With this approach, you define the cost of certain services, and customers pay only when they use a service, rather than paying a fixed monthly rate.<\/p>\n![\"CTA\"](\"https:\/\/no-cache.hubspot.com\/cta\/default\/5442029\/12096ef4-2117-4724-bd7f-72c6d8fecef4.png\")
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<\/div>\n<\/div>\nChoose Your Software<\/h2>\n
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Most MSPs rely on an arsenal of software tools to help them do their jobs, ranging from remote management and monitoring software<\/a> to helpdesk management platforms<\/a>, to backup and recovery tools. Also, a free backup software<\/a> is always a great starting point to recommend.<\/p>\n\n
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<\/div>\n<\/div>\nPrepare Your Workspace<\/h2>\n
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Once you have secured office space, you\u2019ll need to devote time to set up your hardware and phone system. You may also need to put in place the cloud-based infrastructure that you\u2019ll be using to support your business.<\/p>\nFind Your First Clients<\/h2>\n
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Once you have completed all of the hard preparation work to start your MSP business, you\u2019re finally ready to find your first clients. Of course, finding clients can be a challenge, especially if your background is in technical services, rather than marketing or sales.<\/p>\n![\"CTA\"](\"https:\/\/no-cache.hubspot.com\/cta\/default\/5442029\/353c6eca-a476-4800-b73e-aa55b0c47613.png\")
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Onboard Clients Successfully<\/h2>\n
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Finding clients is only half the battle. You also need to ensure that the onboarding process<\/a> goes smoothly. When a client relationship is new, small missteps can lead customers to reconsider their decision to work with you. That\u2019s why you should take extra care in ensuring that you integrate all of your new clients\u2019 systems quickly and efficiently, train the customer\u2019s employees effectively in working with you and your systems, and schedule routine check-ins to address any issues that arise during the onboarding process.<\/p>\nTransition from a Break-Fix Shop to an MSP Business<\/h2>\n
Step 1 - Learn Your Market<\/h3>\n
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Step 2 \u2013 Making the Proposition<\/h3>\n
Step 3 - Push Your Break-Fix Clients Towards MSP<\/h3>\n
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<\/div>\n<\/div>\nConclusion<\/h2>\n
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