NetEnrich’s Justin Crotty recently shared “4 Steps to Building a Profitable Services Business” with readers of Business Solutions Magazine.
In the article, he writes:
I don’t know of any IT solutions provider that has entered the services business to lose money. Yet for some, building a profitable IT services business hasn’t come easy.
As a sales executive, I’ve spent a lot of time with VARs and MSPs in the trenches, talking about the challenges they face, and what they need to build a successful and profitable, services business. During these conversations, I’ve learned that one of the top obstacles many solutions providers face is this: failure to account for hidden costs associated with their services businesses, such as the extra time they spend during the onboarding process to ensure customer satisfaction.
Other road blocks include poor pricing strategies that don’t take into account “value,” overlooking recurring revenue opportunities such as managed security, and simply not leaving room to bill for “scope creep.” These misses result in solutions providers not being paid for the true business value that their services provide and in other cases simply leaving money on the table.
So, how can VARs and MSPs overcome these obstacles to profitability? First of all, they must realize that they cannot approach the sale — or the support of their services business — the same way that they would the products or solutions they offer.
To read the full article, click here.