A mistake that many businesses make is traveling too far from their intended path. While changes may be needed, especially when a firm’s financial situation takes a sudden turn for the worse, some leaders decide to transform their organizations in ways that run counter to their core competencies. That rarely ends well.
The decisions that business owners and manager make under duress tend to carry more risk. Some will deviate from their core philosophies in a last-ditch effort to right the ship, which often has the opposite effect and ends up worsening their financial situation. In fact, the “wildest and hairiest project initiatives usually carry a big price tag and may require a reallocation of resources from other key business activities.
The hope with any new services offering is that its recurring revenue will justify the hiring, development and initial marketing costs. Unfortunately, MSPs have no such guarantee. Most of those investments ‒ especially on the hiring and training side of the equation ‒ require a fair amount of time to realize the benefits. Developing a new services strategy typically takes months, if not years, and relatively few launch schedules go according to plan.
That’s a major challenge for any MSP owner. How can you drive new revenue opportunities without losing focus on the things your team does best?
The answer, of course, is to target new markets that can benefit from your firm’s offerings and support that won’t require heavy lifting on your part. In other words, identify companies that have very similar needs to your existing clientele.
For example, MSPs who support doctors’ offices and hospitals often extend their practices to the dental, chiropractic, and optometric fields. Each of those businesses shares similar technological needs, pain points (including dealing with insurance companies and patients), and compliance requirements. Rather than restrict themselves to one segment of the medical industry, practical IT services professionals leverage their expertise to grow business in virtually every related field. Some healthcare specialists even take it a step further ‒ targeting funeral homes, pharmacies, and regional medical labs. The options are as endless as their imagination.
Use Different Lanes On The Same Highway
MSPs don’t always have a variety of clients to choose from in their local area. However, the beauty of managed and cloud services is they essentially eliminate geographic borders, allowing providers to support clients next door or across the world. In today’s collaborative IT services community, MSPs are no longer limited to that “30 to 60-mile” radius service model of the past.
You are now free to target virtually every prospective client in any location with internet access. Think seriously about what that means for an MSP. You no longer have to take on dubious prospects or those unwilling to bring their systems up to par; the low or no profit clients that distract your team from their mission.
With managed and cloud services as a part of your portfolio, creating and growing a specialized IT practice is easier and holds more profit potential than ever. After creating a core offering and adopting implementation and help desk best practices, your team will be capable of supporting like-minded clients from San Diego to Bangor ‒ or Beijing.
Slightly altering your market reach, targeting similar but different types of businesses can multiply your firm’s revenue potential without a substantial increase in development costs. Think of it as a natural evolution. Change lanes without shifting direction and make your MSP even more successful than it is today.
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