3 Challenges All Managed Service Providers Struggle to Overcome

Every business needs some form of IT services today. Whether it’s an in-house team or a managed service provider (MSP), companies require technical expertise when it comes to their networks, equipment, and the processes they rely on.


MSPs became the popular option during the formative years of the IT industry. As business continues to grow more and more reliant on technology, many companies simply cannot justify the cost and complexity to sustain an in-house IT team. The MSP business model allows these companies to receive professional IT support without the risks and hidden costs associated with do-it-yourself IT projects.


Quick Facts About MSPs

  • 51% of MSPs say they perform both technical and business roles at their company.

  • 47% of MSPs have been in business for 16+ years.

  • 71% claim they will hire between 1-5 employees in 2019.

  • 78% of MSPs make less than $5M in annual revenue.

  • 89% of MSPs claim they make on-site visits at least once per week.

  • According to Datto, the largest industries served by MSPs include Healthcare (34%), Finance (27%), Legal (24%), Non-profit (24%), Manufacturing (23%), and Construction (20%).

But what challenges do MSPs face when it comes to running their own business? And how can they overcome these challenges to support profitable business growth?


Challenge #1: Marketing and Sales

Marketing and sales are still one of the largest pain points for MSPs. IT is a technical field, and the technical prowess of the MSP doesn’t always translate to marketing and sales success.


Most IT companies lack the marketing resources needed to run successful sales and marketing campaigns. These companies often have little marketing experience or no in-house staff.


But that doesn’t mean they can’t find creative ways to improve their marketing efficiency. Many IT vendors offer marketing automation tools that MSPs can use to streamline client management, email marketing, lead nurturing, and other aspects of their marketing campaigns. MSPs can take advantage of digital marketing and sales enablement like the tools offered in the Adaptiv | Partner portal.


Adaptiv Networks partners can access co-branded marketing collateral and run automated campaigns related to specific use cases and verticals. The provides MSPs with marketing tools they can use to build their sales pipeline and grow their business.


Challenge #2: Maintaining a Work/Life Balance

Maintaining a work/life balance is no easy task, especially when you’re trying to grow your business and stay competitive. Phone calls and emails are constant, and your client’s next IT emergency is always around the corner. Finding time to tune out and relax is something that most MSPs struggle with.


Solving the work/life balance process requires the right mindset, but it also requires you to set boundaries. Here are a few useful tips that can help you improve your work/life balance:

  • Determine what your balance looks like. Set rules for yourself and follow them. You must establish how many hours you wish to work each day and week and respect those rules.

  • Learn to trust your team. While you always want to be in charge and ready to respond to IT problems, you have to trust the team you’ve assembled. Learn to share responsibility with other decision-makers at your business.

  • Empower and inspire your employees. Happy employees are productive employees. You want your employees to be happy as your business scales. If you inspire with your leadership, you can expect that they will want to follow your lead.

  • Leverage the latest tools. Technology innovations can save you time, challenge the status quo and look for new way to increase efficiency. For example, a 2019 Nemertes Survey shows SD-WAN reduces network downtime by 69% while providing additional time savings for tasks like troubleshooting and branch network management.


Challenge #3: Revenue Growth

The goal of any business is to drive conversions and increase revenue, and MSPs are no exception. Successful MSPs understand the value of recurring revenue over one-time projects. Recurring revenue is consistent, predictable, and allows you to build lasting relationships with your clients that can develop into larger contracts over time.


Look grow through “as a service” offerings that meet customer needs on a flexible subscription basis. Networking as a Service (NaaS) is a great example. NaaS offerings provide customers with a simple managed network connectivity with minimal upfront cost and the flexibility to grow with their business. For the MSP, NaaS provides a reliable method for boosting your recurring revenues that extends far beyond traditional break-fix and VAR models.


Providing ongoing services will increase your monthly revenues and allow you to provide additional value to your clients beyond initial installations, repairs, and other one-time services. This is by far the most scalable method of revenue generation for MSPs.

Remember, your clients want to save money. Emphasize how the solution benefits them by avoiding upfront costs, lowering total cost of ownership, and getting more productivity from their current employees.


Stable Growth Starts With the Right Solutions

Adaptiv Networks works with MSPs to help solve all of the pain points we mentioned.


We empower MSPs by providing them with the tools they need to succeed. Our SD-WAN solutions help you build powerful, reliable client networks that are centrally managed for operational efficiency. Our Adaptiv Partner Portal accelerates your marketing efforts and empowers your sales team help grow recurring revenue for your business.

Adaptiv delivers reliable solutions that are trusted by MSPs throughout the U.S. and Canada. If you’re looking to expand your IT business services and increase recurring revenue, contact us to learn more about our turnkey NaaS solutions for small to mid-sized clients.

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