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5 ways MSPs can scale their business

5 ways MSPs can scale their business

2022-03-23 03:00:53 — 5 min read

If you are struggling to grow your MSP business, you’re not alone. 69% of Service Providers also find it tough.   

The MSP Trends Report was created to give valuable insight into the managed services landscape.  From the MSPs surveyed, many reported that scaling issues were some of their biggest challenges.

Customers have a greater  need for Microsoft 365 and Azure management, and they recognize the need for external support.  However, this demand puts pressure on MSPs, causing a few major challenges.

Data shows that some Managed Service Providers are experiencing operational issues. As times have changed, agile competitors are taking advantage of ‘in demand’ services. MSPs struggling should take a step back and establish:

  • How IT ecosystems are managed
  • Smart ways to scale
  • Strategies to cope with growth
  • Services customers find most valuable
  • Techniques used to solve internal challenges

5 tips to scaling your MSP

 1. Find the right customer

47% of MSPs have found their success to be with mid-market customers. As these companies have higher employee numbers, they represent a significant opportunity for MSP businesses. As part of your scaling strategy, identify the client group that needs IT support.

Think smart when attracting new business:

  • Where do you add value?
    Consider your service offering and provide services that competitors aren’t doing
  • Be conscious of your capabilities.
    Only offer the skills and services that you can confidently and continuously deliver
  • Create awareness and demand.
    Take the necessary steps to market your business and broadcast your value
  • Be selective with your customer network.
    Mid-market customers provider larger opportunities. You may choose not to work with organizations under a certain size.

2. Identify what sets you apart


The 2022 MSP Trends Report specifies that consulting, Microsoft 365 deployments and Azure hosting management are all ‘in-demand’ service areas for clients. Compared to 2022, consulting experienced a 100% increase, indicating that companies need specialised MSP knowledge. 

  • Rethink your services.
    Focus on what customers need. A tailored offering will help grow client numbers. For example, last year, 53% of businesses experienced at least one cyber-attack, so, 84% of MSPs added security services to their offering in 2021. If your MSP doesn’t provide security as a service, customers may choose a competitor.
  • Know your customers.
    63% of MSPs introduced new services in 2021. These MSPs listened to customer needs and understood their market. This knowledge helped to shape the direction of The business.
  • Explore growth areas.
    The report highlights services that have grown in demand. Consider adding them to your growth strategy. If you don’t have the capacity, consider how you fill those skills gaps to offer new services.

3. Be aware of current and future challenges

Many MSPs experienced a growth in cloud migrations during 2021. This has caused many operational issues for IT Service Providers. In today’s fast-moving market, its essential to learn how to problem solve quickly , especially when servicing increased tenant numbers.

Some of the more common challenges include:

  • Talent.
    Consider how your team solves challenges. Do you have the right talent? If not, consider hiring additional skilled staff to help with complex challenges.
  • Tech solutions.
    What automation tools are you using? Statistics show that performance can be improved with better internal operations and advanced automation solutions.
  • Visibility.
    How do you monitor cloud infrastructure efficiently? Assess on-prem and cloud monitoring processes. Can they be made simpler? MSPs need a clear way to analyze data, especially with large customer numbers.
  • Multi-tenant management.
    Can you improve day-to-day management and administration tasks? Challenges can be solved, or at least lessened, with tools that provide efficient ways to manage multiple environments at the same time. 

4. Assess tools and automation solutions

69% of MSPs find it difficult to grow their business. Respondents said  that their scaling performance could improve with better internal operations and automation tools.

MSPs who take advantage of automation solutions have found it easier to scale. Audit your solutions and consider the following: 

  • Processes.
    Can your solution build and service multi-tenant environments at scale? If yes, is it the most efficient? Logging in and out of various user environments takes up a large amount of time. If this is your process, consider a single solution and operate out of one tool.
  • Advanced automation.
    Some tools have become more sophisticated in their management capabilities. To eliminate repetitive tasks, use one that lets you automate lengthy manual processes. Find a solution that allows teams to build commands and automated workflows and deploy them at scale. In doing so, you can manage growth the smart way.
  • Integration.
    If you integrate tools together you will get added benefits. When connected, apps. won’t need to operate independently from each other, and you can set up smart integrated workflows to extend day-to-day capabilities.
  • Self-service.
    Empower customers to take control of their needs. Having a self-service platform means clients can quickly add and retract the solutions or licenses they use. With a self-service platform in your tech stack, MSPs can focus on more complex client needs and spend more time trying to scale.  

5. Provide an exceptional service

Positive feedback is an easy way to attract new business. MSPs should keep customers front-and-centre when trying to scale, making sure they service them to the highest of standards.  

Sustainably grow your MSP

The road to scale has many potential obstacles. Successful MSPs who analyze their business strategy and their customers on a regular basis will be able to adapt accordingly to the market. Once the strategic goal is clear, IT Service Providers can equip themselves with the correct tools and infrastructure needed to grow.

MSPs that want to grow should carefully review these insights and put a plan in place to address key opportunities in 2022.

To discover other ways to scale and the latest industry insights, download the 2022 MSP Trends Report today.