In this industry, there are different types of “IT companies.” Are you an MSP? Are you a Break/Fix IT shop? This article will help you determine where you are on the journey to becoming an IT MSP. Note however, for smaller companies, the lines can at times be a little blurry!
What Is a Break/Fix IT Shop?
A Break/Fix IT shop operates on a reactive model. Clients reach out when something goes wrong, and the IT provider steps in to resolve the issue. The client is charged for the time and materials needed to fix the problem. The key characteristics of a Break/Fix IT shop include:
- Reactive Approach: Services are provided only when a client reports a problem. There is no ongoing monitoring or management.
- Transactional Relationship: The interaction with clients is typically short-term and issue-focused, with no formal commitment beyond the immediate need.
- Unpredictable Revenue: Income is directly tied to the number of issues clients experience, leading to variability in cash flow.
- Limited Scope: Services are generally focused on resolving specific issues rather than managing the entire IT environment.
What Is a Managed Service Provider (MSP)?
An MSP, on the other hand, operates on a proactive model, offering ongoing management and support of a client’s IT infrastructure under a subscription-based agreement. The core characteristics of an MSP include:
- Proactive Management: MSPs monitor and manage a client’s IT systems continuously, often preventing issues before they occur.
- Long-Term Relationship: Services are provided under a long-term contract, fostering a deeper, ongoing partnership with clients.
- Predictable Revenue: MSPs typically charge a monthly fee, leading to more stable and predictable revenue streams.
- Comprehensive Services: MSPs offer a wide range of services, including network monitoring, security management, helpdesk support, and cloud services.
Signs You’re a Break/Fix IT Shop
- Client-Driven Engagement: If most of your work is initiated by clients when something goes wrong, you’re likely operating as a Break/Fix shop.
- On-Demand Services: If your business model relies on clients calling you only when they need something fixed, you’re providing on-demand services typical of a Break/Fix model.
- Revenue Spikes: If your income fluctuates based on the number of client issues in a given period, this is a hallmark of the Break/Fix approach.
- Limited Client Interaction: If you interact with clients primarily when there is a problem, with no ongoing support or management, you’re in Break/Fix territory.
Signs You’re an MSP
- Proactive Service Delivery: If you provide ongoing monitoring, management, and maintenance of IT systems, you’re functioning as an MSP.
- Subscription-Based Pricing: If your revenue comes from regular, predictable monthly fees, you’re aligned with the MSP model.
- Strategic Client Relationships: If you work closely with clients to plan and implement IT strategies that align with their business goals, you’re in the MSP space.
- Comprehensive Service Offering: If you offer a wide range of IT services, from cybersecurity to cloud management, under a long-term contract, you’re operating as an MSP.
Transitioning from Break/Fix to MSP
If you’re operating as a Break/Fix IT shop but want to transition to the MSP model, there are key steps to consider:
- Shift to a Proactive Mindset: Start offering services that prevent issues rather than just fixing them. This could include regular system monitoring, patch management, and IT consulting.
- Develop a Service Portfolio: Create a comprehensive list of services that clients can subscribe to, from basic support to advanced IT management.
- Build Long-Term Relationships: Focus on developing deeper, ongoing relationships with clients. Offer value beyond just fixing problems—become a strategic partner in their IT journey.
- Adopt a Predictable Pricing Model: Transition to a subscription-based pricing model, where clients pay a regular fee for ongoing services. This provides stability for both your business and your clients.
