Your MSP business isn’t the first, and it won’t be the last, so learn from others that have gone before you and succeeded. Also, learn from those who’ve failed. Following are several tips that you should keep in mind as a startup. These can help you keep from incidentally undermining your operation:
- It’s wise to ask for help
- Ensure you have laser-level focus
- Don’t overextend capital of a personal nature
- Remember: you’re not pursuing a hobby, you’re a business
- Only go after the right opportunities, not all opportunities
It’s Wise to Ask for Help
Your MSP business likely isn’t blazing territory so unique that you wouldn’t benefit from assistance. Ask for help, look to peers, look to leaders in the industry. If you can make partnerships, do so. The more help you get, the more networking you can do. The more networking you can do, the more likely you’ll be able to get yourself in front of investors who may be interested in what your MSP has to offer. Perhaps, you’re not some billion dollar unicorn, but if you provide a necessary enough service locally, investors stand to profit from your success just as you do, which can make investing in you a wise business choice. So, ask for help, ask around, meet people, network, and remember that you’re part of an economic machine, not some isolated buccaneer tech provider.
Ensure You Have Laser-Level Focus
What is the reason for existence defining your MSP? Are you servicing specifically one under-represented aspect of IT or do you have multiple products and services? Know what you’re doing and keep your sights aimed squarely on your goals.
Don’t Overextend Capital of a Personal Nature
You need to have a reserve of personal capital that isn’t ever dipped into. This will ensure you’ve always got a safety net. In general, taxes, regulations, sabotage, disaster, market fluctuations, blunders, and life can propel you into unexpected success, dismal failure, or years of treading water, wondering if what you’re doing is worthwhile. Have a personal asset limit you don’t go over in case things aren’t proceeding as they should, and you’ve got to change direction. Even a failed startup is intellectual ammunition requisite to hit future targets.
Remember: You’re Not Pursuing a Hobby, You’re a Business
It isn’t only your personal financial and social situation that is on the line. Clients, employees, investors, partners, and vendors all have a stake in your operation, as well. You can’t pilot your MSP business in a lackadaisical manner. Focus, and run it like a business, not a hobby.
Only Go After the Right Opportunities, Not All Opportunities
Here’s what opportunity cost is: the expense you pay to pursue a given opportunity. If the cost is higher than the return on that investment, you shouldn’t pursue that opportunity. Some clients are too small for you to profit from, some are too big. Don’t just pursue opportunities because they exist. Pursue them because they’re profitable in some way.
Your MSP business will be more successful and operate more smoothly if you’re careful to avoid common mistakes. Remember, you’re not alone, you can find information to help navigate the early days of your MSP’s operation.