Beyond the Sale: Scaling your MSP for sustainable growth

We talk a lot about ways to generate more revenue and profits for MSPs but not as much about how to support an expanding business base once that growth begins. Having too much business should not be seen as a negative, but if you aren’t prepared, it can create poor customer experiences, and all that new revenue can quickly disappear. 

So, in addition to mapping out strategies for increasing revenue, MSPs should also have plans to support business growth.

Important steps for boosting growth

• Map out your growth strategy. Yes, you want to expand your business, but what exactly will that look like? What milestones will you use to measure your progress, and what resources will you need to support that growth? Articulate your long-term vision for the company and set realistic growth objectives (revenue targets, client acquisition, etc.). You should also identify when to invest in new technology and/or staff as you approach those objectives. 
• Manage costs. While an increase in business might lead you to invest in more staff and technology quickly, those investments should be made carefully. More overhead can eat into your MSP’s profitability, regardless of how much more revenue is coming in. Look for ways to increase productivity within your staff so that you can gain more output without overtaxing the team. Software platforms that provide high levels of automation (like AI-driven security analytics) and multi-client network monitoring and visibility (such as RMM) can help reduce administrative and non-value-added tasks for your team’s to-do list while still allowing them to provide a high level of customer service.
• Focus on recurring revenue opportunities. One of the most significant opportunities for MSP growth is to move away from one-off projects and into subscription-based service programs. The recurring revenue model helps MSPs weather economic instability and provides additional chances to sell add-on services. To maintain these contract-based clients, MSPs must focus on driving recurring impacts to clients daily, every week, and every month. Articulating the value of those services regularly is important. If you don’t do that, you can put renewals at risk.
• Invest in staffing and training. Staffing is essential for MSPs trying to scale up their business. Not having enough people on board to support customers or having the wrong people with the wrong skills can hinder growth. Skilled tech employees, particularly in security, are hard to come by. MSPs should look at a variety of ways to bolster staffing, including working with staffing services, outsourcing, upskilling internal employees, and providing in-house training for new hires who may come from non-traditional backgrounds. Depending on your business model, this may involve a mix of full-time, part-time and contract employees. Critically, your employees need to have the skills to support subscription-based services.
• Assess your current staff and their skills, certifications, and technical knowledge. Outline their roles, including those outside their official job description. Identify gaps and investigate the best ways to fill them – that should not be just dumping more work on your existing team. Do you need a dedicated sales team separate from your technical staff? Do you need an outsourced marketing team or help desk support? Can tools like automated remote monitoring and management (RMM), third-party 24/7 Security Operations Centers, or other solutions help you scale without a significant hiring push?
• Establish an onboarding process for new hires. This is related to the staffing issues above, but onboarding new employees should be just as thorough and regimented as onboarding new clients. You should have detailed job descriptions for each new role, an established training plan, and clearly defined expectations. There should also be clear opportunities for growth and advancement so new employees will stick with you while you expand the business. 

A bright future ahead

When it comes to MSP growth, managing your internal operations will be as important as identifying new revenue opportunities. To take advantage of those opportunities, MSPs must make well-planned and well-timed investments in staffing, training, and technology. Partnering with solution vendors that can help alleviate some of the administrative and support burden is also vital. Especially those with offerings like outsourced SOCs or other as-a-service platforms.

A good MSP helps its client future-proof their networks, applications, and business operations. Internalizing those concepts can help MSPs be well-positioned for a busy and profitable future.