MSPs have shown credibility in the face of the COVID-19 pandemic. But what about profitability?
MSPs succeeded in meeting the IT needs of clients when there was an unprecedented spike in remote working. However, ‘money’ remained a challenge. We need to keep in mind that MSP clients have been hit hard by the pandemic. Consequently, many of them have delayed or deducted their payments, affecting recurring revenue for MSPs.
Although guaranteed growth during an uncertain time is difficult, it isn’t impossible. Here are five ways to accelerate your MSP growth in 2021.
Your MSP has two ways of growing – acquiring new clients or cross-selling more to current ones. Review your active clients and prospects to create your ideal client profile.
Your ideal client is someone who gets their exact needs met by what your MSP is offering.
A well-defined, ideal client profile will help you understand what factors to consider to create the perfect product-customer fit. The goal is to have a more focused client base; 80 percent of your revenue should come from 20 percent of your clients. This will enable your MSP to yield growth with limited investment of resources.
Once you understand who your ideal clients are, get clarity on what they want. Remember, clients don’t buy services; they buy the end results from services delivered. To stand out in a market where everyone is competing for real survival, focus your MSP messaging on the end results.
Reiterate your MSP messaging across your website, social posts, sales emails and anywhere else you can think of. Train sales and customer service teams to speak in a language that highlights how your services can help prospects and current clients achieve their goals for 2021.
MSPs that were hit the hardest during the pandemic specialized in only one or two industries. Moral of the story? Branch out your revenue streams by restacking your MSP offerings.
For instance, if your MSP was selling remote monitoring services pre-COVID, you might want to mix that with BCDR solutions. After all, businesses are ramping up their security spending, which is expected to amount to $174.7 billion by 2024.
But don’t stop there. Add more unconventional offerings like consulting or educational services that teach clients about IT management best practices. The new year may push you to think of out of the box but the real question is, are you willing to push yourself?
The cylinders of your MSP growth engine are your employees. They have to work twice as hard to achieve a quarter of the results. MSP owners need to ensure their employees are happy and working effectively.
Here are some ways to keep employee spirits high:
- Stay in touch. Engage with your employees irrespective of whether they are working remotely or in the office. Use tools like Zoom, Microsoft Teams and Slack to enable rich, internal communication.
- Recognition. Spending on employees is not an expense; it is an investment. Arrange training sessions to initiate opportunities for professional growth. Hand out gift cards and meal vouchers to reward employees for their hard work.
- Encouragement. Send regular emails to reassure employees that what they do matters. Start by sending thank you notes to employees for their contributions.
- Counseling. Offer mental health helplines to aid employees suffering from anxiety and stress-related issues.
2021 comes with many uncertainties, except one – MSPs will continue to face challenges. MSPs need to partner with the right vendor to ensure smooth sailing in 2021 and beyond.
When it comes to finding the right BCDR partner for your MSP, Unitrends MSP is your best bet. Unitrends MSP recovers entire systems in minutes without breaking a sweat. That translates to reliability for clients, thus fostering a relationship of trust.
Ultimately, clients will do business with your MSP if they have faith in you efficiently managing their IT 24/7/365, thereby freeing up their time to focus on growing their business. Easier said than done, of course, but it’s your ticket to accelerating your MSP business growth in 2021.
Want to know if Unitrends MSP is the right fit for your MSP? Schedule a demo!