Margaret Sherfy had a clear real-world example of how she did not want to operate when starting a business. Someone close to her had often talked about working for an MSP that maintained high recurring revenue despite frequent customer complaints and troublesome leadership.
After hearing that, Sherfy was confident she could do even better. Sherfy, who started her MSP PhoenixTech Consulting in spring 2024, now plans to grow her operation from a side hustle to her full-time job.
Her goals include providing good customer service, ethical billing, and proper management. Plus, Sherfy wanted to choose her clientele. “I want to make a difference in people’s lives, [unlike many] corporations that don’t even remember your name,” she insisted. “I want to help those small businesses that can’t afford or don’t need full-time IT.”
Margaret Sherfy
Sherfy plans to use her 24 years of experience in the medical and banking sectors along with her federal security clearance to serve customers anywhere. Her initial target list is broad, ranging from doctor’s offices to funeral homes in the St. Louis suburbs, where she is headquartered.
In addition to maintaining the flexibility of remote work, just doing the math was another motivator. “I’ve been doing IT for other people for years, and making other people a lot of money,” Sherfy admitted.
Building a Foundation
Often, the reasons that motivate MSPs to go out on their own can create the foundation of the new company’s core values.
That’s according to Anne Schoolcraft, certified EOS implementer at EOS Worldwide. EOS, or the Entrepreneurial Operating System, is a set of business principles and tools that help business owners run more efficient and effective businesses.
“With small businesses in particular, many founders are passionate about the culture they’re trying to create,” Schoolcraft noted. “So, when they have a clear vision for what they want the culture to be, it can be helpful to put that in writing.”
It’s never too early for new MSPs to start defining the necessary roles in their businesses, Schoolcraft said. That’s true even if only one person is wearing all the hats or still getting help from family members. In fact, Schoolcraft herself started EOS implementation for her husband’s MSP in 2012 before it became her career.
Being Your Own Boss
Sherfy now is relying on education to help her make sound decisions among a plethora of options for remote monitoring, ticketing solutions, cybersecurity, penetration testing and more. These previously were always chosen by her bosses during her decades in IT and cyber roles.
Working for the U.S. Air Force and Air Force Reserve, the Missouri Air National Guard and multiple private sector positions did not prepare her to work with a blank slate, she revealed. So, she’s doing all the training she can find, she said. “I was surprised at how much leg work it takes. I thought [previous employers] just picked from a couple of options and that’s it.”
Anne Schoolcraft
Perplexing Pricing when Starting a Business
Another complicated activity Sherfy said she’s experiencing is pricing her services. She considered flat fees, but realized she would have to distinguish between projects of varying sizes.
She researched variable fees and found a significant range of $50-150 per user/device. Plus, she would have to account for costs such as patching, antivirus, password keepers, online support, and the various levels of technicians. Eventually, she settled on using a hybrid pricing model with a mix of tiered packages and hourly break/fix rates.
Staying Ahead of the Game
When it comes to staying informed, Sherfy said she relies on a variety of tools. She subscribes to the Growth Generators YouTube channel for tips on RMMs and antivirus, what to spend money on, and what’s available for free.
Also, a colleague encouraged her to attend ChannelPro events, which gave her the chance to demo products and determine where to start.
Meanwhile, Schoolcraft suggested other tools that can be helpful for new MSPs. For example, there are EOS foundational tools, such as the scorecard and accountability chart. Using Microsoft Planner — which comes with Microsoft 365 — can help track the many to-do lists that come with launching a new business.
Starting with a good system will help a new MSP move from being distracted by shiny objects to truly becoming a leader in their business.
Featured image: iStock
