So, you’ve decided to start a Managed Service Provider (MSP) business. Maybe you’re coming from a solid IT background, or perhaps you’ve just realized that being an MSP means you get to fix everything remotely while wearing pajamas. Either way, welcome to the club. Strap in, because your first year is going to be a wild ride. Here’s how to make it through with your sanity (mostly) intact.
Find Your Niche, or Risk Becoming ‘That IT Guy’
The temptation to be a jack-of-all-trades is real, but resist it. You don’t want to be “that IT guy” who ends up fixing everything from email issues to the office microwave (true story, don’t ask). Focus on what you’re good at—whether it’s Microsoft 365, cybersecurity, or network management. Specializing allows you to charge more and be known as the expert, not just another techie with a wrench.
What Worked for Me: Specializing in a specific vertical—healthcare, in my case—allowed me to charge premium rates because I spoke their language and understood their pain points.
What Didn’t: Trying to be everything to everyone. I quickly found out that just because you can doesn’t mean you should. Especially when I ended up on the phone with a client explaining that I don’t, in fact, do website design.
Get Your Financial Ducks in a Row
Ah, finances—where most startups either swim or sink. You’ll need to understand P&L statements, balance sheets, and cash flow like they’re your new best friends. Why? Because cash flow issues can sneak up on you faster than your clients’ printer problems. Make sure you have a solid runway—ideally, 1-2 years of living expenses and operational cash in the bank.
What Worked for Me: Getting a good accountant early on. Trust me, trying to do it all yourself while running a business is a recipe for disaster.
What Didn’t: Believing I could just “wing it” with cash flow. Spoiler alert: that’s how you end up in a panic when a client is late paying an invoice.
Document Everything or Regret Nothing
Process documentation is your new religion. If you think you can keep everything in your head, think again. Document every key process—from onboarding clients to handling support tickets. This is how you ensure consistency, scale your business, and take a vacation without the world burning down.
What Worked for Me: Creating detailed process docs and actually using them to train new hires. It saved me from countless “But I thought you said…” conversations.
What Didn’t: Assuming my team would just “get it” without documentation. They didn’t. I spent more time putting out fires than I care to remember.
Sales: Stop Talking Tech
If you’re new to the MSP game, here’s a hard truth: no one cares about your tech jargon. Clients want to know how you’ll solve their problems, not how you’ll configure their firewalls. Master the art of discovery—ask the right questions to understand their pain points and tailor your pitch accordingly.
What Worked for Me: Focusing on the client’s business problems and positioning myself as the solution, rather than diving into a tech monologue.
What Didn’t: Trying to impress potential clients with how much I knew about the latest hardware. Their eyes glazed over faster than a donut in a Krispy Kreme.
Marketing: Don’t Outsource Until You’re Swimming in Cash
Until you hit that $1-2M revenue mark, resist the urge to hand off your marketing to a fancy agency. You know your business better than anyone else, and in the beginning, it’s all about consistency and persistence. Develop a simple marketing plan, execute it, and tweak as needed.
What Worked for Me: DIY marketing with a focus on content that spoke directly to my niche.
What Didn’t: Outsourcing too early. The agency knew how to market, but not how to speak to my audience. It was like trying to sell sushi to a steakhouse crowd.
Side note, don’t think that “doing your own marketing” means “creating your own collateral.” Groups like Tech Tribe have really good resources for this!
Set Your Prices Right—And Stick to Them
Pricing can be a nightmare if you don’t have a strategy. You’ll be tempted to undercut the competition to win business, but don’t do it. Set your prices based on your value, and don’t stray. Sending two invoices (one for products, one for services) can also help clients see the value of your service separately from the hardware.
What Worked for Me: Sticking to my pricing model, even when clients pushed back. It positioned me as a premium provider, not a discount shop.
What Didn’t: Offering discounts to “just get in the door.” Those clients turned out to be the most demanding and least profitable.
Get a Mentor—or Two
If there’s one thing that can save you countless headaches, it’s finding a mentor who’s been there, done that. Whether it’s through SCORE, a local business group, or even just a fellow MSP owner willing to share their war stories, their advice will be invaluable.
What Worked for Me: Having a mentor who could talk me off the ledge when I was ready to quit over a client dispute.
What Didn’t: Trying to figure everything out on my own. Turns out, reinventing the wheel is exhausting.
Final Thoughts: It’s a Marathon, Not a Sprint
Starting an MSP is hard. Like, “why did I ever think this was a good idea?” hard. But it’s also incredibly rewarding. Focus on getting the basics right in your first year, and you’ll be in a much better place when it’s time to scale. And hey, if all else fails, there’s always the fallback career of fixing office microwaves.
Good luck out there, rookie!
