4 Persistent Problems Plaguing MSP & IT Service Firms

MSP and IT service owners face many challenges running their business. Whether it’s client relations & service, choosing and managing vendors relationships, hiring and managing staff, keeping up-to-date with technology via training, managing operations (as efficiently as possible), these owners have their hands full.

Unfortunately, these day-to-day challenges can also make it difficult to focus on the real challenges that can hold a business down.

Below are 4 challenges or problems that in my opinion must be overcome if you hope to solve all the rest. They happen to be interrelated and dependent on each other in order provide a complete solution.

They are:

1) Problem: obscurity

You care about your clients and do great work. However, not enough potential clients know you or know to call you when they need help.

2) Problem: lack of recognition

Are you just another tech support company or true trusted advisor and expert? Who knows but how people perceive you has a direct effect on your sales & marketing efforts, projects, margins, and revenue.

3) Problem: Not enough deals in the sales funnel

Do you rely too much on referrals? Do you focus too much attention on a few big deals that when they don’t come through are a big let down? Not having enough opportunities causes ups and downs in your project schedule and cash flow which in turn can affect staffing and other areas.

4) Problem: Inconsistent cash flow

This is the culmination of all the others. Do you a have recurring revenue strategy or margin improvement for your projects? Do you have enough projects? Do you have an ongoing lead generation system that captivates, creates conversations, connects and converts prospective clients to opportunities? And once you have the opportunity and have earned the ability to provide them with a proposal, do you have the tools and techniques necessary to ensure the awarding of the project?

Do these challenges seem overwhelming? A mentor of mine once said, “By thinking negatively, we can prepare positively”.

The challenges can be overwhelming if we let them. However, I know from experience both as a consultant and as someone who has held the revenue responsibility for a variety of companies, that all of these challenges can be solved. Stay tuned for more post both on LinkedIn and on my own blog on how to solve these nagging challenges.

Ramon Vela is an entrepreneur, lead generation expert, and President of MSP Marketing Services. Subscribe to our FREE online course, "30 Rock-Solid Sales Rules for Achieving MSP Success". Based on a trusted advisor approach, it includes “30 must-follow-rules” to help MSP and IT Service companies close more recurring revenue & project sales.