Can MSPs Grow As Small Businesses Shrink?

Can MSPs Grow As Small Businesses Shrink?

managed services and layoffsMost pundits remain upbeat about managed services. But here's a riddle that you'll need to solve in the months ahead: How can managed service providers continue to grow when their small business customers are shedding jobs (and therefore, devices to be managed) at a rapid pace? Fact: US small businesses eliminated 600,000 jobs in December, according to Inc. magazine. That reality could force some MSPs to change direction.

Quoting a jobs report from ADP (Automatic Data Processing), Inc. magazine notes:

"the economy shed 693,000 jobs total in December, with almost 600,000 of those losses coming from companies with less than 500 employees."
That's why more and more MSP software providers -- particularly Nimsoft -- are telling their managed service providers to push into the mid-market. In that sector, organizations typically have full-time IT departments that may (A) require outside help and/or (B) may want to eliminate some full-time positions or tasks (such as 24x7 helpdesk).

Regardless, "doing what you've always done" doesn't seem to be an option in this economy. Yes, stay close to your existing small business customers. But just because they sign managed services contracts that doesn't mean they'll remain in business -- and continue paying you -- through the end of this year.

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