If you are an IT Managed Service Provider (MSP) business owner, you know that choosing the right industry to target is essential. But how can you decide which industry will be most beneficial for your MSP? There are many factors to consider, but with a systematic approach, you can find the best fit for you and your team.
Research Your Competitors & Vendor Partners
Understanding what industries your competitors are targeting is essential when deciding which industry to pursue. This can provide helpful insights into potential opportunities for growth and areas where there may be too much competition.
The competitive landscape can also give you ideas about which services and technologies each industry needs so that you can design a comprehensive offering tailored specifically to that industry. An example of a service that can be tailored to a specific industry would be RPA robotic process automation.
Evaluate Your Expertise
Your team's knowledge and experience should always be considered when selecting an industry focus.
Evaluating your current staff's expertise can help guide your decision-making process; this will ensure that any new services or technologies implemented align with your staff's skillsets.
Additionally, if certain members of your team have specialized expertise in specific industries, it may be worth considering those industries first.
Assess Your Resources
Your resources—time, money, personnel—are just as important as the other factors when deciding on an industry focus. It's vital to assess how much of each resource is available and determine the best way to allocate them to optimize results.
For example, if time is limited (but money isn't), it's wise not to go after a highly competitive market with multiple existing players; instead, look for unique niches with fewer competitors and more growth opportunities.
Alternatively, if the budget is limited but time isn't, going after small businesses within relatively low-competition markets could yield positive results without breaking the bank.
Selecting an industry focus for your MSP requires thoughtful consideration and research to ensure it aligns with your expertise and resources.
Researching competitors while evaluating your team's skillsets and available resources will enable you to create a targeted offering that meets the needs of any given market or industry. With careful planning and effort, you can find an ideal fit for your MSP automation business with immense growth potential!