Startup MSP Pricing - What to do when a client approaches you to start a managed services business
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- Опубліковано 7 вер 2024
- It is not uncommon for IT people to receive offers from potential clients to start a business so that they can manage their IT without hiring them as internal staff. I know because I have seen it on Facebook, Reddit and it even happened to me.
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Tell me how you priced your first managed service package...
Wow Eric, your content is unmatched! Im 20 and working in a help desk. I would like to get a side hustle started maybe a small MSP but have no idea how. Im really passionate about IT and your videos really help me a ton!
Thanks!
Thank you for this channel. I appreciate the work you do.
I love your content. Concise. Well made. Thought out and makes sense. A few things that hit me wrong and is constructive criticism. Intro is too long. If an intro is longer than a five seconds at most it’s already to long. Intros just aren’t necessary anymore now you get your pitch or summary of show in your bio or description and title. Linus Tech tips talked about this and about either cutting to two seconds or completely removing their intro they used for ten years because it just gets skipped by those who can easily and anyone who didn’t skip it wishes they could have.
Another is mentioned below, almost three minutes in and we only have an overview and question stated in title and an intro. With a video this short the first two minutes isn’t needed. Other than that I love your stuff and hope you keep putting out amazing stuff. Definite subscribe from me.
I 100% agree. The new intro is only 6 secs long (10 for interviews) and overall most of the videos will be shorter and get to the point faster.
Good analysis but typically your first client will not be that large to replace the income of your current job. You would start the new business as a side hustle and if you get the right volume that is important enough to dumb your main job income and dedicate to the new MSP. In this process then we can apply all the points that you are highlighting
Kirk, I agree that getting a first client that is big enough to transition quickly is rare, it does happen and was my experience with my second business. New content coming to help early stage MSPs who still have a foot in both worlds.
Thanks for commenting.
@@AllThingsMSP Ok THIS makes a little more sense, but it's not exactly what was presented in the video. So the IT guy keeps his day job, and just side hustles the first client. Which is more or less what I did. You're going to have to have "just the right job" and also "just the right client" to make that dance work out. I did it, so its not impossible - but it's not the most common situation in the world. Then you sell client 2 before you quit day job, and pray! :D
The idea that a company is going to hire you in order to save money because "not big enough to budget internal IT" - is going to entirely support your startup MSP is patently absurd. If they're going to pay for all this stuff, why would they not hire an employee instead?
@@notsure7874 because they may not need a full time person and the MSP benefits from more shared resources in addition to labor costs that make it cheaper than the company purchase all those tools themselves.
@@AllThingsMSP The scenario presented just isn't a realistic one. If they don't need a full time employee why would they pay for a full time employee plus all these startup costs? Because you're suggesting that this hypothetical IT guy price this client to replace his income, add some for insurance, and taxes, and tools, and ... also don't forget a profit margin! So that is MORE than an employee costs. On the other hand, the hypothetical company is going to pay this IT guy LESS than an employee would cost (and definitely less than the employees pay PLUS all the other things) ...
If they're going to pay less than an employee costs, and the IT guy is supposed to replace his pay, and add all these costs - you're talking about Schrodingers MSP.
I'm not saying that a tenable situation cannot exist, but it's not going to happen like that. It'll be more like - IT guy takes a significant pay cut, and also adds a huge chunk of his savings to pay for all the startup costs, and he's gonna have to use all that "extra time" to SELL. And sell he must, or he'll go bankrupt. But he won't be able to go sell out of the gate, because he's going to be busy onboarding his first client, getting his process straight, and working the tickets by himself. IF he can get it stabilized, and keep the client from eating all of his time, THEN he can go sell... So this IT guy is going to have to have a pretty stout bankroll, and he's going to have to pay that bankroll back before he can actualize any profits.
You don't necessarily need to quit your job if you are just getting your first client do you? Would seem a bit premature if you get 1 client or even 2 clients and quitting your job.
Correct, you do not have to quit your job. But in a lot of cases, the company asking is big enough that they will need you most of the time. It all depends on how big those first clients are.
Depends on the situation. Personally if you have a full time job with benefits and you can keep up with your clients then ride it out for as long as you can. I used my full time job to buffer out startup costs so I didn't have to take out a loan or find a partner. Some strategic lunch breaks and PTO days got me by.
Some constructive criticism if you're open to it.
I'm nearly 3 minutes in and you've yet to get to the point, much less expand on it. The editing is solid, and the premise is there, but you lost my interest after I got ~40% through the footage without having learned a thing. Otherwise, good content, subscribed!
ahh I mean at some point I'll be able to pay myself... something... anything haha :-|