Just as is true with any growing company, Managed Service Providers (MSP's) face many challenges when attempting to grow their business. Given the continued growth of MSP's overall, exploring some of these issues is worthwhile. Here are 5 of the top challenges MSP's face when trying to grow their business.
Profitability and Utilization
Some estimates show that more than 40% of MSP's use less than half of their available software solutions. This is clearly inefficient; and in addition to this under-utilization, about a quarter of MSP's indicate that they would increase their profit margins if the software solutions that they are currently using was more adaptable and flexible.
Training (and Retraining)
Recruiting, training, and retaining top talent is an ongoing struggle for many MSP's. According to John Motazedi of SNC Squared, "Our biggest challenge is finding good techs, good engineers to deliver the services. We are always recruiting". Given the evolving technology that MSP's deal with, this is a trend that will no dobut be ongoing.
Increase in Competition
Competition is a fact of life with any industry; given the exponential growth of MSP's, it comes as no surprise that this holds true for managed service niche also. In addition to rival MSP's, mobile and bring-your-own-devices, as well as the cloud, present stiff competition for many MSP's.
Finding an Optimal CRM Solution
Developing and fine-tuning an effective CRM solution to more productively deal with their clients is another challenge that MSP's face on a continual basis. The vast majority of managed service providers did not have an existing CRM system in place before they were hit with tremendous growth, and have consequently struggled with the dramatic increase in business. The MSP's who were fortunate enough to have a CRM system in place encountered difficulty with proper usage by of these systems by their sales teams.
Along with the welcomed growth and sales that the MSP's enjoyed, they have faced the issue of developing lean, agile systems to handle these new customers. An efficient, refined operation -- in order to deal with e-procurements, quotes, services, and accounting, among others -- is a necessity to prevent becoming overwhelmed by the sheer volume of business.
Although managed service providers have certainly realized significant growth over the last 5 years, they have also faced challenges associated with this growth. Efficiently using their existing software, recruiting and training, dealing with competition, finding an ideal CRM solution, and streamlining operations are 5 of the top issues that face MSP's today, and are predicted to continue for the foreseeable future.
If you would like to see how NinjaMSP can help you, please reach out to us today and see what a difference our RMM solution can make!
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