Smarter Partnering: How VARs, MSPs and CSPs Can Scale Together

It’s extremely difficult for a solution provider to go it alone. There are just too many technology needs from any given client for an SP to be all things to all people. And those that do try to be a jack of all trades end up being a master of none and business will suffer as a result.

As a result, to be successful today’s SP needs to be focused on a handful of particular areas and then be willing to partner with other SPs to supplement any other service expertise. That said, what should an SP look for in terms of partner?

There are really just two ways to slice up a partnership: either by geographical presence or by technology services. In either case there are some fundamental practices that need to be considered regardless of the type of business arrangement. Here are three main areas you as an SP should focus before partnering with any other company.

1. Vetting: All SPs need to thoroughly vet any other business they are going to partner with. Knowing someone who has “got a guy” isn’t good enough. This potential company is going to be an extension of your own organization and needs to conduct business in the same manner that you do. You need to get a financial history, credit report and customer testimonies. Talk personally with these customers. If an organization is unwilling to provide you with any of these, they are hiding something or are not organized properly and that should be a major red flag.
2. Complementary Services: A potential business partner needs to bring something to the table that you currently do not offer. In some cases that is geographic reach. You may have a customer than needs on-site support in a specific region and you need to find someone in that local area to handle it. Or, you may have a client that is looking for certain technology expertise, maybe wireless carrier support, where you currently do not have expertise. In either case, the relationship needs to be complementary whereas together your organizations offer more services depth. Too much overlap in region or services will lead to account control issues and bad for long term business.
3. Similar Cultures: This is one of those intangibles but more often than not will crumble a partnership. Outside of fiscal responsibility and complementary products or services, culture is perhaps one of the biggest areas that can make or break a partnership. At the end of the day you want to do business with a person or company that is like-minded. How do they treat their employees? How do they manage problem clients? What are their community values? A business partnership is like a marriage, there are going to be ups and downs. Knowing how the company you about to do business with handles adversity is crucial because they are going to be dealing with your employees, your customers and you.

There is no argument that SPs need to partner with other SPs in order to grow business with their current accounts but to also break into new ones. But there are right ways and wrong way to go about choosing a business partner. Getting involved with the industry’s trade associations and events will help you network and meet other SPs. Choose wisely.