13 Ways To Avoid MSP Blunders

Because of misconceptions about becoming a successful MSP, many service providers fall short. Here are 13 common blunders and how to avoid them.

1. We must be a 24/7 operation.
Not all clients and services require 24/7 operations. But you need to have the capabilities to monitor and respond reliably 24/7.

2. All managed services are created equal.
Building a delivery system, and creating and packaging managed services, take time and expertise. Create a defined product set that differentiates you from your competitors.

3. Buy some management tools.
An MSP is more than fancy tools. Solve business problems with strong tools, dependable back-end support and valuable deliverables.

4. One size fits all.
Design your solution around a vertical and then market to that industry.

5. Stick with your existing sales strategies.
Success requires skills in solution selling. Your sales team needs to understand your customers and sell the value of your solution.

6. Keep your sales comp plan as is.
Set quotas and compensate your sales team accordingly.

7. Wing it--you don't need more sales tools
Unlike products, services aren't tangible. Create tools to show your organization's reliability, competence and knowledge.

8. No news is good news.
You have to do more than detect problems. Your solution should manage an entire system.

NEXT: Why the buck doesn't stop with the bill.

9. Deliver the service, send the bill, and you're done.
Demonstrate your company's value by delivering comprehensive, high-quality management-level reporting.

10. Simple monitoring is good enough.
The money is in remote remediation, so offer several tiers of service.

11. Buy the cheapest management tools.
Consider tool pricing after you've determined what you want to offer. Your services platform should cost less than 20 percent of revenue.

12. Your suppliers aren't important.
The right supplier can mean the difference between success and failure. They should have strong support for their products and partner with you.

13. Start small; worry about scalability later.
Think about scalability up front. It's tempting to assume you can replicate your way to growth. You need operational efficiency and features that focus on consistency across a large client base.