Transforming from Break Fix to Managed Services… Easier than Transforming the Toy!
By: Frank Gurnee, Equus MSP Solutions
If you are a parent you have probably experienced the pain staking frustration, complete lack of patience, and the utter defeat that a transforming toy can bring. Once it has transformed and becomes a robot the first thing your child wants is it back as a vehicle. After the multiple hours spent, this only increases your blood pressure, and takes away at a minimum a year of your life. Ok; maybe not that bad but you get the picture. Transforming your business from a traditional break fix model to a Managed Service Provider business also known as “MSP” can be much easier and less frustrating than the toy.
A break fix business can be one defined as a reactive services business. This will traditionally be an hourly service rate, followed by hardware and software sales, and is reliant on a customer need or call. This way of doing business can be profitable but can create a rollercoaster of demand, resource needs, and unpredictability that can sometimes lead to both good times and tough times, but lacks a definitive stream of revenue. This is where the Managed Service Provider “MSP” model picks up.
A Managed Service Provider “MSP” business can be defined as a predictive services based business. Typically this means that recurring revenue, monthly management, and service based solutions are a primary function of the organization. The MSP will sell mostly “as a Service” products such as remote monitoring and management “RMM” , Software as a Service “SaaS”, Hardware as a Service “HaaS”, Help Desk Services, Email Security, and many other service based offerings. Most MSP’s will bundle solutions and create one managed network environment for their clients, providing a complete and total managed product. This allows for predictive revenue, resource scalability, and peace of mind to the business practice as well as to the end client.
A managed services solution provides the end client with a virtual IT department that can provide all of the necessary day to day functions without having to hire or staff an IT person. It is usually more cost effective, provides 24 hour support, and can include network equipment all for one low monthly price. The trend in MSP is to provide one flat rate, all inclusive solution. This can include monitoring and remote support of the network, parts, labor, and even onsite visits. The key to providing an all-inclusive solution is pricing it correctly and making sure you are not taking on an outdated or antiquated network environment. A network assessment is a definite requirement and no matter how tempting it is, you must never take on an old network.
So what are the steps to becoming a Managed Service Provider?
1. The first thing to know is that you don’t have to stop providing break fix services. Many people out there will say it’s all or nothing, “you must change your entire model and stop providing break fix services.” I disagree with this; the reason is that break fix allows opportunity; it is a way to gain leads and see environments that you may otherwise not have an opportunity to see. When you walk into a new break fix client’s office you may recognize an immediate need for your managed service solution and you will most likely be able to setup an appointment with the decision maker, based on the work you have provided.
2. Start using a “PSA” (Professional Services Automation Program) – A PSA tool will allow you to manage your business, create workflows, setup recurring billing and product management, keep track of your employees time, and is an overall investment into your business that will pay for itself in a very short amount of time. It is imperative that a managed service practice is able to manage the day to day needs of their clients and a PSA tool will make this task easy and efficient. The top PSA tools on the market are Autotask www.autotask.com, Connectwise www.connectwise.com, Tigerpaw www.tigerpawsoftware.com, and there is even a free entry level tool on the market Shockey Monkey www.shockeymonkey.com.
3. Choose an “RMM” (Remote Monitoring and Management Tool) – RMM’s allow you to remotely manage a network. They provide alerting when pc’s and servers have issues, allow you to remotely login and work on the machines, provide patching and management of security updates, and creates the ability to handle most issues/day to day tasks remotely. Some of the most popular RMM’s are Level Platforms (LPI) www.levelplatforms.com, LabTech www.labtechsoftware.com, Zenith InfoTech www.zenithinfotech.com, Kaseya www.kaseya.com, N-Able www.n-able.com, Packet Trap www.packettrap.com, GFI Max www.gfi.com/max-family, and many others.
4. Get training- Learning how to sell managed services will be an important step in being a successful MSP. There are many organizations willing to help and provide resources to get you started selling and marketing managed services. Some of the top training organizations are Managed Service Provider University www.mspu.us, ASCII www.ascii.com, Robin Robins Technology Marketing Toolkit www.technologymarketingtoolkit.com, Stuart Selbst Consulting www.stuartselbst.com, Matt Makowicz Ambition Mission www.ambitionmission.com, TrueMethods www.trumethods.com, and there a host of others by researching managed services sales training.
5. Start slowly- Companies like www.equusmsp.com can provide an easy way to get into service based solutions with no upfront costs and month to month products. They can include products such as RMM, Help Desk services, Backup solutions, e-marketing, hosted Exchange, email security solutions, as well as Hardware as a Service. It doesn’t require huge investments to get started as an MSP; you just need the right help and knowledgeable people to help you make the right choices.
Unlike transforming from a vehicle to a robot and back; managed services can be an easy process to convert in to. Utilizing the expertise of others, and reaching out for help so you aren’t “reinventing the wheel” will be a factor in how long it will take to get up to speed. Becoming an MSP can provide a profitable recurring revenue stream, create predictability in your business, allow scalability, and provide a path for growing your business. Follow the steps outlined above and “transform” your business today!
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