An MSP company that only has one concentration is going to be less effective than one who has branched out. However, branching out without a strategy can be very harmful to operations. There’s a balance, and if you don’t find it, you’ll be less effective than you could be.
Here’s a hypothetical example: remember VHS tapes? Say you were a video store that didn’t branch out into DVDs. Say you were Blockbuster, and after branching out, you avoided acquiring competitor Netflix. Well, you would gradually implode. Technology is a moving target that increases exponentially on itself at predictable intervals. If you only do one thing, you will become less profitable eventually.
Tactics to Expand Your Niche
That said, it’s always easier to point out a clear problem than to render a clear solution. With that in mind, following are three tactics you can use to help your MSP expand into more profitable areas of service provision:
1. Make Core Strengths a Point of Expansion Leverage
You need to determine where your MSP company excels, and build on those core strengths to provide leverage for forays into new operational areas. For example, if you provide cloud computing support options, IoT is an adjacent relevant provision. If you provide MDM (Mobile Device Management) services, you might look into Device as a Service (DaaS), or something similar. These are just suggestions which may or may not work for your particular operation. The key here is: find out what you’re good at and what adjacent provisions could be organically branched into.
2. Keep Your Finger On The Pulse Of New Developments Collateral to Your Niche
IoT and cloud computing are known. Edge computing is something that is swiftly becoming more relevant. Website management is known. Mobile website design and associated management is becoming more mainstream. Right now, quantum computing is in the initial stages of operational effectivenes. Something else that’s burgeoning are biological robots. Where is your niche, and what tech developments are collateral to it? Find answers to these questions, and allow them to drive future development of tech provisions through your MSP.
3. Communicate Clearly with Clients and Personnel to Find Areas Recommending a Shift
Your employees know areas where clients are asking for services you don’t offer. Clients know what they want, and what you don’t provide. Listen to personnel and clients to determine where you’ve got provision gaps, which ones you may feasibly fill, and which ones are beyond your MSP’s ability.
Overcoming Niche Limitations
When your MSP company clearly communicates with clients and personnel pertaining to niche shifts, follows collateral tech developments and plays to core strengths, branching out profitably will be something you can more realistically attain. Consider where you’re at, where you could be, where you want to be, and the best way to achieve such a result. Such an approach will help you effectively, sustainably, and reliably overcome niche limitations.