Your MSP business is facing a growing competition. The number of managed service providers continues to grow, which gives your clients more choices. Your business’ unique value proposition shows what you offer your customers that they can’t get anywhere else. Do you know what it is that your company has? What makes customers signup with your services? Addressing this important piece of vision builds your company. It is also the building block for specialization that your company needs to continue surviving in a competitive world.
Being the Best at What You Do
Trying to everything means your focus is spread thin. Your processes aren’t dialed in for a certain service, your employees are spinning between different products, and your sales department needs to balance out what to sell. All of these things lead to wasted time and low productivity. By simplifying your business to one type of service you dedicate time and effort into being the absolute best at your specialty. With efficiency, you can create a business model that excels. Your company can offer a high level of service, which makes your competitive edge outstanding.
When your MSP business can focus on a specific area of specialization, it is easier to find the most cost effective way of providing your services. With reduced costs, your margins increase, without having to increase price models. Price points are huge when it comes to such a competitive market, but your business needs to make a profit. Internal efficiencies are what make successful businesses so profitable.
By knowing exactly what your business is about, you can create marketing plans that target the clients that you want. Your market research can hone in on the exact customers looking for your services. This detail is important when choosing where you want to specialize. Your marketing team can get a lot of information that helps direct your marketing effort. An MSP that provides a general list of services has more trouble trying to get into such a granular level of customer data.
Choosing Your Vertical
Taking the jump to providing specialized services needs to be well thought out. It is a decision that shapes your business for years to come. Some of the considerations to discuss with your leadership team include the following topics:
- Passion – Your business needs to choose a vertical that you and your leadership team are passionate about. Something that piques your interest, you can dive into wholeheartedly, and that you can speak passionately about. This focus lets you enjoy your work and helps you sell your products and services well.
- Skill and talent – Choosing your vertical needs to play to your company’s skills and talents. You need to have a specialization into a vertical that you are going to excel at. Play to your strengths to help your business grow into the chosen vertical.
- Profits – You need to ensure that the target of your chosen vertical market can afford your services at your current price point. If your current fee schedule is out of the range of your target market, your business is going to struggle to stay competitive in that niche.
These are critical points of discussion when choosing the right focus for your company. By addressing these areas, you and your leadership team can find the perfect specialization for your company.
Defining your vertical is a scary step for your MSP business. On the surface, it can seem that choosing a vertical is a limiting factor in your business growth. However, with a closer look, it is clear that you are just choosing where your efforts are best concentrated. You are moving your business along your vision for the future. The effort to analyze your company and find the vertical that suits your passions set your business up for long term success in an ever competitive industry.