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6 hurdles to achieving your revenue goals (and how to overcome them)

Posted:
01/24/2023
| By:
Brad Schow

In today’s high-stakes business landscape, managed service providers (MSPs) face a growing number of ever-evolving challenges. At the same time, there are many opportunities on the horizon. Amid rising inflation, supply chain issues, and the potential economic downturn, MSPs can still thrive by setting a strategic growth strategy. This is especially true when it comes to MSPs that service small and medium-sized businesses (SMBs), a market poised to generate more than $90 billion in managed IT service spending over the next few years.

Our MSP industry report uncovers six major obstacles to capturing market growth. Here, we’ll explore these challenges in details well as how to overcome them.

1. Accelerating recurring revenue

Profits and cash flow are often unpredictable. As the world continues to recover from the worst of the pandemic, MSPs must contend with new work norms and evolving client business models—as well as the revenue-related uncertainties that accompany them.

In today’s fast-paced environment, it can take MSPs anywhere from four to seven years to build a high-performing, recurring revenue portfolio. However, customer needs can evolve much faster.

How ConnectWise can help:

 

2. Attracting and retaining talent

About 20% of MSPs say that staff retention is a problem. Increasingly, MSPs are competing against global tech firms for top talent—a challenge that shows no signs of letting up, thanks to today’s IT talent gap and tech labor shortage.

How ConnectWise can help:

  • By taking the IT Nation Certify leadership development course™, you can make the most of your leadership journey and bring out the best in your teams.
  • Consider outsourcing options to supplement your team. Whether you need a single tech or a fully staffed team, ConnectWise Integrated Expert Services delivers the skilled talent you’re looking for, on demand.
  • With ConnectWise RMM™, our network operations center (NOC) can act as an extension of your team and provide 24/7/365 network monitoring, troubleshooting, and issue resolution for all client server endpoints.
  • With ConnectWise Co-Managed Backup™, our NOC can take over many daily tasks related to troubleshooting and backup monitoring. Free up your resources to focus on what matters—tasks that add and deliver value to your clients.
“ConnectWise NOC Services continues to be a valuable asset to us. They make it to where we sleep better at night." Richard Rubin, President and CEO of Allierad

 

3. Differentiating business value

With a growing number of providers transforming into MSPs, service differentiation has become increasingly challenging. For 25% of MSPs, it’s now a key business goal.

Every MSP owner wants to create value—for their customers, vendors, employees, and themselves. High-performing MSPs tend to be equipped with a clear value creation strategy, whether their exit date is three or thirty years from now. But that’s only the first step—differentiation remains crucial.

How ConnectWise can help:

  • Show your value to clients with client reporting from BrightGauge™, a ConnectWise solution. Boost efficiency, transparency, and flexibility—all at the touch of a button.
  • Discover a data-driven path to higher performance. Service Leadership, Inc.® is a proven partner when it comes to increasing shareholder value and profitability—something every organization needs. Get ahead of the competition by gaining a clear understanding of where your business is today, where you want it to be tomorrow, and how best to get there.
"The partner program and support from the team has driven a complete packaging and pricing revamp within our business, enabling us to position ourselves with a clear differentiator in a crowded market. We are now often told by clients and industry partners that our service offering is now the broadest they have seen, with more covered ‘under one roof’ than they have seen anywhere else. This puts us in a more controlled position and removes the clients’ need to involve third parties.”
Adam Harling, Managing Director, Netitude

 

4. Responding to suboptimal sales growth and devising a go-to-market strategy

Around 25-30% of MSPs find it difficult to respond to their customers’ changing needs, largely due to a lack of visibility into customer trends and expectations. Without comprehensive customer data and end-to-end insights, you may be left scrambling to meet evolving demands. In turn, accelerating your own sales funnel can become a daunting challenge.

How ConnectWise can help:

  • ConnectWise Partner Program™ provides marketing guidance, sales support and a dedicated sales development manager, campaigns in a box, and more.
  • IT Nation Evolve is an annual membership program designed to help you navigate your business journey through peer group interactions. Our members are among the highest in growth and have the largest profitability percentages in the industry.
Learn how MSP Massive IT accelerates growth and go-to-market strategy with the ConnectWise Partner Program >

 

5. Scaling staff productivity

Are you struggling with productivity? You’re not alone. Without the right software and tools, MSPs everywhere are fighting to maintain momentum. In fact, more than 30% of MSPs are now prioritizing improvements in staff efficiency.

Disparate tool usage is a major culprit. Tackling each challenge with an entirely new solution may work in the short term but could create an intricate and fragmented network of tools that cuts into long-term efficiency.

How ConnectWise can help:

ConnectWise, named Best PSA/RMM Vendor at the CPI US MSP Innovation Awards 2022, pays off. With our industry-leading solutions, you can emerge 60% more productive and 25% more efficient.

  • Let your techs shine. ConnectWise Project Assistance™ supplements their hard work by taking on ad-hoc projects when needed—during business hours, after hours, or on weekends—freeing your team up to do what they do best.
  • Our fully staffed Help Desk Services™ takes the daily tech support burden off your in-house staff so they can focus on high-value projects that support business growth.
  • Let ConnectWise handle day-to-day admin tasks so you can scale your business without hassle. ConnectWise NOC Services™ provides powerful, always-on services without taking more time out of your day.
  • Our global security operations center (SOC) monitors, detects, and mitigates cybersecurity threats to ensure ongoing protection. Rather than risk tech burnout, rely on a team of certified cybersecurity analysts and cutting-edge threat intelligence tools to manage your cybersecurity monitoring 24/7. ConnectWise SOC Services™ is available with ConnectWise Cybersecurity Management™ and ConnectWise SIEM™.
  • ITBoost™, a complete IT documentation solution by ConnectWise, allows your team to centrally document your most important information, processes, and customer details so that everyone—even your new hires—can consistently provide amazing customer experiences.

 

6. Mitigating increased risk and liability

Threat actors are actively targeting MSPs and their customers. It’s no surprise that 20% of MSPs are prioritizing their own cybersecurity, while 30% are planning to provide cybersecurity services.

For many MSPs, cyber insurance is a critical investment. When you’re tasked with protecting countless SMBs, you can become a target for high stakes cyberattacks. The right protections can keep both you and your customers safe.

How ConnectWise can help:

You don’t have to tackle these challenges alone. Since 1982, ConnectWise has identified crucial trends, engaged with industry leaders, and listened closely to businesses in the IT community. We don't have clients—we have partners we tirelessly uplift and defend. Whether you're an MSP, MSP+, VAR, or OED, ConnectWise provides everything you need to automate, manage, and grow your business all under one roof.

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