10 Proven Ways to Better Manage Your MSP
3 November 2021 Comments Off on 10 Proven Ways to Better Manage Your MSP Uncategorized
One of the main benefits of working with a managed services provider (MSP) is the ability to outsource your network management, infrastructure, and security to an experienced third party. Let them handle your business and rest assured that your business needs will be taken care of.
Ever since the pandemic struck, businesses have been forced to resort to newer methods to manage their businesses. You need to consistently evolve as a business and optimize your methods to avert a crisis.
This is even more important for an MSP, which is managing the complete infrastructures of different customers. If MSPs fail to deliver the desired results, they are not only harming their own effectiveness but also their customer’s productivity.
To ensure that an MSP runs smoothly, here are 10 steps that will help you better manage your MSP.
Develop a detailed pricing strategy
It is imperative that a managed service provider creates a detailed profit and loss analysis of the business. Make a pricing strategy for each service that you provide to your client. Moreover, your strategy should include the total operating expenses, detailed break-even analysis, and quantify the complete return on investment(ROI).
Figure out the pricing models for every business that you handle. From small ones all the way to large infrastructure, each pricing model should be tailor-made.
Charge the client on small items
Small pieces of equipment are often disregarded while quoting companies. However, these smaller items cost a lot when you look at them from a larger picture. There has to be a system developed that can automatically handle quotations for small parts such as cables, screws, bolts, etc.
This method will not only save time but makes your billing process more efficient.
Keep a trail of your bills
A professional services automation(PSA) tool will help you maintain records of all the data, billings, and receipts in a recordable manner. Each client will be separately placed to ensure the billing process runs smoothly. These records can be accessed in any case at any point after your services are rendered.
Institutionalize repeatable processes
To become consistent with your services, you must define every repeatable process. Include visuals, flowcharts, and diagrams to streamline these processes for your entire client base.
When you hire new employees, this establishes a professional work culture that will help in their training. When a repeatable process is defined, institutionalize it so that the impact of such services have a stronger impact on your delivery, such as IT Infrastructure Library (ITIL).
Introduce a cloud service
Outsmart the competition and start offering cloud services. The earlier you do it, the better you’ll be. Offering cloud services will be a huge value addition for the clients.
Moreover, your sales and marketing teams will be able to generate more leads and successfully convert them.
Find a unified management platform
Often, when providing vCIO services & comprehensive solutions, it can get difficult to manage the various moving parts.
Consolidating all your tools in a unified management platform will reduce your clutter. A centralized system that can handle service plans, service levels, remote monitoring, billing, invoicing, data backups, support, and ticketing in one space is better than opting for multiple tools.
A help desk that is capable of integrating every management tool under one system is always going to be a better option.
As you take over your client’s business, do not give in to the temptation to take over every responsibility of your client’s business. Rather, take small chunks of your client’s business, study it completely, then expand into taking over other parts of their business.
Work towards building high-percentage entry points. Limit the scale of services that you provide, when trust is built, talk to your client and talk about possible expansion scenarios. This type of conversion will develop a recurring revenue stream for long-term success.
Improve your ticketing process
Ticketing can get messy if you do not streamline your process. Create a strategy that will help you maintain smooth workflows. Ticketing should be prioritized on different models, such as urgency and categories.
To keep your processes running smoothly, diligently track statuses, improve automation, use template messages and invest in a professional services automation (PSA) tool. This will free up technician time and maximize efficiency.
Automate your billing system
Invest in an MSP billing tool that will help shave days off the billing cycle at the end of each month. Automate your system so that it is able to track time, dispatch invoices, and integrate the whole system with your accounting software. This method can resolve billing disputes and reduce clutter.
Realize that you do not have to handle everything yourself. Technicians will encounter problems on a regular basis. A poor strategy involves micromanaging everything yourself. If customers are able to solve problems by themselves then you shouldn’t have to.
Empower your customers by giving them the resources to handle their own technical difficulties. Build a knowledge database, make a customer portal and publish FAQs for your customers. Making these tools available to your customers will keep them satisfied and save everybody’s time. Consistent deliverables such as QBRs or TBRs can be streamlined into self-services by using various automation platforms.
Running an MSP business can be challenging. There are a lot of learning curves and failures along the way. You will have to deal with demands, changes in the market, manage your finances and find your way to make your business profitable.
It’s a hard task but we are sure that these 10 steps will increase the efficiency of your MSP. Make sure to implement them properly and watch how your business improves. Consistent steps to evolve is how you will stay in the game and grow as a service provider.