Your MSP company is going to go through many seasons of service provision. Sometimes, you’re going to have some technology become antiquated as new solutions are available. Other times, the cost of providing a service won’t be overcome by profit from that provision. There are many reasons to shift the core concentration of your MSP. The only constant is that you likely shouldn’t make such a pivot without strategic consideration. Following are several signs such a change may be needed:
- Consumer education monopolizes time
- Decline in revenue, growth, or both
- The needs of clients have shifted
Consumer Education Monopolizes Time
Your MSP company can’t afford to spend more than 50% of operational time on one aspect of outreach, except you’re seeing a requisite profit. Sometimes, products or services you provide come with a consumer education tax which is just too high. Keep an eye on numbers. If you’re not statistically measuring your time spent in secondary IT-related tasks, like time spent educating clientele, you probably should be.
Decline in Revenue, Growth, or Both
This is basic and straightforward: if you’re not seeing growth, and revenue is adopting negative numbers, it’s time to take a look at service provisions and consider where a pivot is best. Pivot isn’t total change; you’re just pulling out of one service and devoting energies toward something else that has better futures.
The Needs of Clients Have Shifted
Nobody needs CDs or floppy disks; everyone uses cloud computing, MP3s, email, and smartphones. The client needs shift as technology does. If your MSP isn’t prepared, you’ll be undermined by this change in operational reality.
Making the Shift
Your MSP company must establish operational protocols around willingness to pivot as necessary. Consumer education, profit decline, and client needs are signs of pivot necessity. Keep your finger on the pulse of these indicators so you can transition when the time is right.