At a recent Club VMSA event I learned that there are literally thousands of vendors to MSP's who simply do not perform, they are inactive (by their own choice). It still amazes me that I see senior business development managers and even owners of staffing companies target MSP programs knowing that they will not be successful. If not at the very beginning, close to it, they will stop supporting the MSP/Client.
They should have never have committed to that program! Committing to a Program means that you have the experience providing the resources, that you understand the financial risks, that you have defined success in terms of consultants on billing, revenue and gross margin and that you have the infrastructure in-place.
Here is a quick checklist
- Is your experience supporting the categories in alignment with the Program? How long have you been supporting those categories and do you have a database of resources? What is your proactive recruiting model/process?
- Are you prepared to work off mark-ups that are lower than your direct retail business? Are you prepared & able to wait between 45-90 days for payment without interruption of service?
- Is your internal cost/expense structure (sales/recruiters, on-boarding, etc.) set up to be successful working on lower margin business?
- Have you set reasonable expectations in terms of success; in other words have you established your 6, 12, 18 & 24 month goals?
- Is your infrastructure- your TEAM in place? Do they have the experience supporting MSP business?
- Have you established KPI's for each program?
- Have you set up a weekly measuring & reporting structure?
The MSP business is not for everyone. It is extremely competitive and takes an enormous amount of energy, commitment (people & financial) and team dedication. On the 'flip' side it can also be extremely rewarding and profitable.
About Rang Technologies:
Headquartered in New Jersey, Rang Technologies has dedicated over a decade delivering innovative solutions and best talent to help businesses get the most out of the latest technologies in their digital transformation journey. Read More...