Moving to an MSP business model? Here’s what you need to know.

The managed services provider (MSP) market has witnessed phenomenal growth over the past few years and will only continue to grow in the future. According to Research and Markets, the managed services market size is expected to increase from 145.3 billion in 2016 to 242.4 billion by 2021 - at a Compound Annual Growth Rate (CAGR) of 10.8 percent.

Businesses increasingly rely on managed services providers to manage their infrastructure and deliver the latest cloud communications solutions. Learn how you can capitalize on this massive revenue-generating opportunity and transform your business model.

male and female working at desktop
3 Steps to Adopting an MSP Business Model

1) Evaluate your business

You can’t change your business model without first understanding your business as it is today. Take the time to assess your current business practices, company culture, financials, markets and employee skill sets. Determine the key skills that will influence and shape your new managed services offering. Gain an in-depth understanding of your strengths, weaknesses and priorities and go from there.

Also, identify the current markets you serve and your likelihood of expanding into new markets. Is there a service niche you’ve previously overlooked? Have you previously considered offering increasingly in-demand cloud communication services, but delayed the move because of budget limitations or fear of change? Compare each target segment and see which would offer the highest potential for growth and returns in profitability.

2) Define your new service offerings

Identify what new and differentiated services your company plans to offer. Collaborate across departments and gather input and suggestions from your employees.

Since they’re interacting with your prospects and customers on a daily basis, your sales team can offer critical insights into the services from which your audience would most benefit. Even better, go straight to the source and ask prospects and customers what services they are looking for.

Are they looking to update their existing infrastructure and support an increasingly mobile workplace? In that case, you may want to consider offering your customers a cloud-based phone system that enables a more actively engaged remote workforce and exceptional customer service. Reach out to existing customers through surveys and encourage feedback with financial incentives like discounts, free consultations or gift cards.

Add services that not only increase your value and relevance in the marketplace, but also serve your customers’ changing needs. Consider offering highly sought after cloud communications solutions that empower your customers to drive significant growth in their businesses and create new efficiencies.

3) Develop a strategic roadmap

Every business move requires strategic planning and moving to an MSP business model is no exception. Don’t rush into any decisions. Take the time to create a thorough and forward-thinking plan that will lay the path for a successful future as a managed services provider.

Before you expand your existing service offering, create a detailed list of all updates and changes you will need to make to your existing infrastructure. Then, develop a strategic plan of action for these updates. Who will be responsible for each stage of deployment? What steps will you need to take to ensure a successful transition? Make sure everyone understands their role during the transition to an MSP business model.

Map out clear strategies for ensuring uptime and business continuity during the transition. Also, don’t overlook the importance of marketing and sales during this critical business juncture. Choose the marketing and sales tactics you will use to target highly qualified leads and capture new customers for your expanded service offering. Think prospecting emails, social media marketing, comprehensive guides, search engine optimization and other key strategies for reaching the prospects and customers with the highest potential of buying.

With so many products and solutions to choose from, deciding on the best solutions to offer as a managed services provider can seem like a challenging and overwhelming task. Learn about the powerful benefits of offering cloud communications to your future and existing customers with our guide, How to Become A One-Stop-Shop for Your Customers by Offering UCaaS.

Learn how YOU can become the single vendor for your customers’ communication needs by offering UCaaS. Download Our Free Guide.