Wednesday, March 20, 2013

Big vs Small - Forging an effective MSP business

In terms of effective and profitable RMM service delivery, which is it better to be: a small one or two man shop working out of a garage or a large shop with four-hundred plus business customers?  To answer this we first need to look at the pros vs. cons within each environment.

Generally speaking, a small shop is likely to have working in their advantage:
  • A high degree of price and product flexibility &
  • Very few committed hours
Unfortunately, this usually means that:
  • Tasks and projects are scattered &
  • There's little cash in reserve
Which is really tough because:
  • It's very hard to get traction &
  • You're a bitch to your customer's whims
OK, lets look at the other side of the coin.  Again, generally speaking, a large shop is likely to have working to their advantage:
  • A high level of product specialization and hyper-efficient product delivery &
  • Known good processes for the vast majority of customer requests
Which sounds much better than Option A until you consider this also means:
  • An equal amount of product rigidity &
  • A discouraging environment for innovation
For a bottom line result of:
  • Tomorrow's product isn't being built because
  • You're a bitch to the process
Good thing I'm not a motivational coach, eh?  Neither of these environments seem to be good MSP incubators - so how and were do you find your chrysalis?  (and did I just type 100 words just to end up at the same question, said differently?)

That's just it.  There is no greener grass here.  There is no relationship between the size of your company and the ability to quickly and competently metamorphose into a pure MSP delivery shop.  The diatribe above was mostly pulled from my discussions with prospects and customers telling me why it was harder for them to make this transition.  Truth is, size just doesn't impact the formula.

What matters is organization, knowledge and understanding.  Rule #1 for building your MSP
  • Know Your Windows
  • Know Your Customer
  • Know Your LabTech
I don't mean 'Know' in the archaic, I mean the old-fashioned 'Know', borne of gumption, ability, determination and pride.

Know your Windows.  I'd like to think this first fundamental needs no further elucidation.

Know your Customer.  This is one of your biggest competitive advantages.  This should also be your inspiration.  Ask yourself, 'What is it they ultimately want?'.  Don't think stuff like Outlook 12 and the new slate tablet thing.  Think more big picture:  they want an email front end and a portable tablet.  Then take it next level:  consider what they intend to do with that email editor and that portable tablet.  Then use your expertise to guide them to the smartest choice.  Offer them exactly what you would do, were you them.  This process may very well come back full circle to Outlook 12 and the Pro Tablet. Or it may not but that mental exercise did it's job in that it forced you to really consider your customer's needs from their shoes.

Know your LabTech.  All this means is using your knowledge of Windows and your understanding of your customer's needs to create automation that elegantly delivers exactly that.

More on this later...

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