Before joining ChannelPro, I worked for two very successful managed services providers. The first, TCG Network Services, grew profitability until it was acquired in 2022. It had about 12 employees at that time.
When I departed the other MSP, Envision Technology Advisors, it was also profitable and boasted more than 50 employees.
TCG and Envision were very different companies but both followed surprisingly similar blueprints. Here are four lessons I learned about the quest to build the perfect managed services business.
1. Build a Robust Managed Services Stack
A great tech stack enables you to deliver seamless service, maintain strong security, and grow sustainably. Having too many overlapping, expensive, and niche platforms results in “tech sprawl.” That introduces inefficiencies, vulnerabilities, and operational chaos.
Be deliberate every time you consider adding new technology. Conduct regular audits of your tech stack. Familiarize yourself with each vendor contract and understand your recourse if the technology or service doesn’t meet expectations.
Four Factors to Consider
- Useability: Great tools balance functionality and ease of use. Assess whether your team has the expertise to leverage the tool’s full potential.
- Scalability: Look for tools that can handle a 2x or even 5x growth in your operations without requiring a major overhaul. Choose vendors willing and able to support you as you grow.
- Integration: Evaluate APIs, integration capabilities, and pre-built connectors. This ensures that the tools fit seamlessly into your ecosystem.
- Cost Effectiveness: Measure ROI not just in dollars but also in time saved and opportunities created.
2. Business Strategies: Build a Foundation for Growth
Sean Maguire
From pricing to operations, every business decision impacts your organization’s profitability and long-term wellness. Align each decision with your vision, values, and growth goals.
Key Strategies for a Booming MSP Business
- Build recurring revenue. Managed services contracts — particularly those emphasizing proactive, recurring services — shield against market volatility.
- Excellence isn’t accidental; it’s measurable. Track metrics like first-touch ticket resolution time for efficiency, net promoter scores (NPS) for client satisfaction, and monthly recurring revenue (MRR) for financial health.
- Metrics are an essential part of a score-card system, according to Synivate President Sean Maguire. “Implementing and maintaining scorecards to create a culture of accountability is one of the most important things an MSP leader should focus on.”
3. Get Your Managed Services Business Noticed
Marketopia CEO Terry Hedden described sales as the lifeblood of an MSP. “Without sales, tools and techs are irrelevant.”
Terry Hedden
To stand out and consistently win clients, elevate your approach and align your messaging with the needs of today’s decision-makers.
- Create insightful content that positions your MSP as a trusted advisor. Blogs, case studies, webinars, and videos should educate and motivate your prospects to act.
- Showcase client transformations with measurable outcomes, highlighting how your services directly improved their operations. New clients want to see that you’ve solved problems like theirs.
- Rank ahead of your top competitors on search engines. Invest in a robust SEO strategy to dominate organic search results for both MSP services “near me” and industry-specific IT solutions.
- Don’t sell services — sell outcomes. Frame conversations around solving specific business pain points. Position your services as enablers of growth, efficiency, and security.
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Cameron Brister
Build trust early by delivering excellence, then expand the relationship. Introduce complementary services like advanced cybersecurity or VoIP. Then, frame these as investments in your clients’ successes, rather than as expenses.
- SquarePlanIT Founder and CEO Cameron Brister said it best: “Make it easier for clients to work with you.” He suggested making communication options — such as email, phone, and a helpdesk portal — easy to find. On the backend, centralize these touchpoints into your PSA for streamlined management.
4. Critical Trends: MSPs Must Watch These To Stay Ahead
Staying ahead of key trends is crucial in the rapidly evolving MSP landscape. This helps providers maintain relevance, capture new opportunities, and cement a position as a trusted industry leader.
Cybersecurity is a top priority for SMBs — and the threat landscape is growing more sophisticated each day. Consider offering advanced cybersecurity services, including penetration testing, ethical hacking, extended detection and response (XDR), and security training and testing.
Artificial intelligence is transforming the global economy. AI-as-a-service packages can include consulting on large language models (LLMs), writing and implementing AI security policies, providing AI training, and more.
Plus, compliance services are in high demand. Frameworks like GDPR, HIPAA, and CMMC have tightened compliance requirements for businesses of all sizes. New state-level laws in the U.S. (e.g., California Consumer Privacy Act, Virginia’s Consumer Data Protection Act) also raised the bar for SMBs.
Offering compliance as a service built around frameworks like SOC 2, ISO 27001, and CMMC adds high-value recurring revenue streams. It also enhances client retention as you become indispensable to their operations. If compliance is your wheel-house, find a partner that can help.
Parting Words of Wisdom in the Quest for Perfection
The word “perfect” can be controversial, but controversial ideas often are the best conversation starters.
Here’s some parting advice for managed services providers from some of the IT channel’s smartest leaders:
- “Stop trying to be perfect. We can’t be. The industry is always changing. What worked three years ago may not work today. But you should try to build an everlasting MSP, however. Make clients feel good about you and your team while focusing less on the tech you are installing. That is what will keep clients with you and allow you to run a long-running business.” — Justin Esgar, CEO, Virtua Consulting
- “Have a fast backup solution. Backups are great unless they are slow to restore. Speedy recovery is so important. Next, Copilot and ChatGPT. I am not sure how a business will run in the next decade without these technologies. Finally, use Canva. Who has time to design all the social media, sell sheets and other items they need? Canva is fantastic.” — Nate Sheen, president, Astoria
- “If ‘perfect’ is your goal, the entire organization must be in complete alignment in every area. Focus on your core strengths and the strengths of your team. Outsource any weaknesses to professionals who specialize in those services.” — Rayanne Buchianico, owner, ABC Consulting LLC
- “Define the market segment with the ideal client profile, specific vertical industry, size, and geographic location. This will drive the decision-making process in selecting the correct technology tool stack and the service delivery model. Focusing on excellence within a particular market segment is the key to success.” — Mike Estep, chief client officer, Blackpoint Cyber
- “Tools alone don’t make an MSP great. Processes, leadership, and client engagement do. If you don’t have a well-defined service strategy and a scalable operations model, even the best tools won’t save you.” — Adam Bielanski, co-founder and chief community-ecosystem officer, MSP+
Images: iStock
