Should MSPs perform project work?
Paul Daigle
Transformational CEO | Board Director | Private Equity | Mergers and Acquisitions | MSP | IT Services Channel | Influencer | IT Services Industry Author | 6x Founder | 14 Exits | Host & Guest Speaker
Sould MSP's Perform Project Work?
MSP startups and small, growing MSPs get excited about the potential of monthly recurring revenue (MRR), and as a result, sometimes push hard against the idea that maybe a little project work might be good for their bottom line.
The trouble is that many MSPs – maybe you - are understaffed, and as a result, more project work feels like a dump truck of work just offloaded on an already mountainous pile on your desk.
You don’t want more project work. You just want to find a pleasant client with very few problems and set up a contract that’s easy to manage.
After all, that’s the MSP model, right?
You’re correct.
But here’s the one glitch in that beautiful picture.
Businesses have problems, and if you want THEIR business ongoing business, you may have to take a project to prove your value to them.
Why?
·????????Some business owners are new to the MSP model and may not trust it.
·????????Some business owners have had a bad experience with an MSP and may be hesitant to quickly sign on the dotted line.
·????????Some business owners just like to take a business relationship slowly – one step at a time.
If you cut an organizational leader off by saying, “No, we don’t do project work,” you run the risk of losing what could potentially be a valuable long-term client.
So, what kind of project work is worth doing?
Here’s where it gets interesting, and it’s all in the difference in definition between break/fix and project work.
No, you don’t want to get back into the break/fix game. However, if there is a project – like cybersecurity setups, digital transformation strategy and implementations, and cloud migrations – that may well lead to ongoing MRR.
That’s where project work is attractive.
That’s the kind of project work that should make you feel like you’ve won the lottery.
Why?
Because if you do the project right and provide real-world value to the client, the ongoing business is yours to lose.
So, setting some guidelines for yourself and determining what are legitimate projects that you will happily undertake and what are nuisance break/fix calls that you can easily say “no” to will help you make choices that will improve your MRR long term.
Here are a few things you should ask yourself:
·????????Is the project something that my company (including your subcontractors) are capable of doing?
·????????Will the project interfere with keeping regular MRR clients happy? Am I stretching our team too thin?
·????????Is the project something that we will be able to do a case study on later to use in advertising for more clients?
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·????????Is the project something that I and my team have an interest in doing?
·????????Is the project the type that I can show dramatic results and value to the client?
·????????Is there a reasonable prospect of ongoing MRR following this project?
No, you don’t want to get into break/fix, and not every project is for you.
However, some projects could be doors of great opportunity if you can deliver game-changing value to the client and prove that your team is worth an ongoing relationship.??
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About Paul Daigle
A seasoned technology CEO and Board Chairman experienced leading businesses pivoting due to secular decline in their core business or challenged to identify and execute a transformational strategy to catapult new growth areas. A proven track record of increasing shareholder value through developing strategic plans, building high-performance cultures, and enhancing operational efficiency in turnarounds, stand-ups, and high-growth situations. Paul has managed 1,000+ organizational/strategic reviews with budgets exceeding $140mm and assets of over $800mm
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