Your MSP business needs to consider the reality of your operational situation over the long-term. Let’s suppose you were a floppy-disk and associated hardware company that specialized in just this technology during the nineties. Would that business model remain sustainable in 2018? No. Nobody uses that tech anymore. Any tech company will encounter similar problems, and what is necessary is thinking ahead so that you don’t become accidentally irrelevant. Several strategies to help you do this include:
- Focus which centers on your profitable capacity
- Structure operations to withstand an apocalypse
Your MSP business needs ironclad plans. You need target goals, contingency solutions, and careful strategy. Look at other companies, compare and contrast, and incorporate “give” into the plans so that you can be flexible if necessary.
Focus Which Centers on Your Profitable Capacity
Your plans need to orbit around a kind of profit-inducing product or service that your MSP provides. This will enable you to have financial solidity when the unexpected comes–and it will; it always does. In the earlier example, the hypothetical floppy-disk company didn’t plan for their own eventual irrelevance and so suffered the consequences. If you want to avoid a similar fate, you need to diversify your centers of profitability and seek to make that which funds you something that can naturally be transitioned into profitability as the market shifts.
Structure Operations to Withstand an Apocalypse
Redundancies, redundancies, redundancies. You need internal profit that is actively acquired and divided investments in that which pays dividends over time. Passive income should surfeit active income. Also, store data and other information carefully. Foster close relationships with partners, competitors, vendors, and those whom you serve directly. All these things could act as a surprising savior in an unexpected time of trouble.
If your MSP business is based around reliable revenue streams and is redundantly designed to withstand anything, you will operate with greater long-term sustainability. Go over your existing model and see what may require a little optimization.