Getting into business requires some kind of game plan in mind. While a trial and error approach may at times be used to test out the waters, without an overall plan, it’s difficult to achieve significant success. When you set up an MSP company, it’s vital that you take the time out to put together a business plan. There are many tools and techniques to help you go about this. Some of the reasons why this exercise is very beneficial are outlined below:
It’s a Great Way to Outline Your Vision
A clear vision and some high-level goals are like a guiding light that direct your moves and approach. There is something about putting down a plan in writing that gives you an additional push to work towards it. Many business owners bite off more than they can chew when they rush into deals, accept customers, and set up shop without any real game plan.
Some great questions to ask yourself before and during the process of writing a business plan include:
- What kind of IT products and services should we offer?
- What is the value proposition we are offering to potential clients?
- What is the long-term goal?
There are many resources available to assist in developing a thorough business plan that is as detailed as needed.
It Informs Your Business Strategy
Once you have started your MSP company, what do you use to guide the strategic decisions that you make? A business plan should inform your business strategy, both long-term and short-term. When you have a vision for the future, it can help you to decide whether to accept or pass on potential business opportunities. If a new deal or partner has the potential to detract you from your core business, as outlined by your business plan, you can see the bigger picture and wait for something better.
Day-to-day decisions, such as what kind of staff members you bring on board and what kind of training programs you invest in, can be guided by your business plan. When you have a goal to differentiate or make a name for yourself in the IT industry, you know that hiring people with or without the right IT skills and experience can accelerate or sabotage your efforts respectively.
It Allows You to Attract Investment
Getting outside investment may be a defining step in the life of your business, be in it the startup or expansion phase. Your ability to sell your vision and your roadmap to get there to potential investors is the number one factor in securing the funding you need. A well-thought-out and well-presented business plan tells your investors that you can be taken seriously and that their money can be put to good use with great potential for returns. Before making a presentation to funders, it is very important to make sure that you have updated your business plan, found a unique and attractive way to present it visually, and that you have a winning presentation. Your ability to articulate your business plan can bring it to life and show your passion and commitment. Many business owners use generic business templates, but without putting in any real detailed objectives, you’re unlikely to instill any confidence in a potential investor.
The exercise of developing a business plan for your MSP company allows you to think deeply about what you really want to achieve and how you can do this. It is your plan that you can adapt as needed. It’s an important way to map out your strategy and can simplify your daily decision-making processes.