The average MSP business owner makes his or her fair share of mistakes. After all, these superstars are tasked with all sorts of different roles. Let’s take a quick look at the most common and costly mistakes made by small business owners:
One of the most common mistakes MSP business managers make is trying to low ball the competition. This strategy has the potential to backfire in a big way. The better approach is to set a fair price to start with. As long as you provide legitimate value, customers will not hesitate to pay your rate.
Letting the Competition Dictate Your Price
Square your focus on providing value at a respectable price and your business will succeed. Do what you can to distinguish your offerings from the rest. Do not fall into the trap of copying your competitors’ approach. As long as you are confident in your numbers, you will know where to set the price.
Flawed Cash Flow Management
Cash is what matters most. You need to keep your business’s cash flow positive. Do not overextend your business. Maintain all payment schedules. It will certainly help to accept payments in numerous forms from electronic funds transfers to wire payments and beyond.
Failing to Hire the Right People
You can’t do it all yourself. Take the time necessary to analyze several candidates before extending an offer. Select the right people and you will not have to spend again to repeat the hiring and onboarding processes.
Poor Project Management
Project management takes place internally and externally. Internal refers to how you manage your team. External is more about client management. Explain exactly what clients should expect, when it will be provided, and all other pertinent details. Rely on regularly scheduled staff meetings so everyone is aware of their roles and deadlines.
Working Too Much
You can only do so much. Learn how to delegate to your team and you will enjoy more of a work-life balance. Get your rest, continue to improve your skills and try to enjoy life. This way, you will have the energy necessary to oversee your team, work with clients, collect feedback, and respond in a timely manner.
Over-Caring About the Client Outcome
Caring more than the client about their outcome is a mistake. Have the client sign off on your deliverables, fulfill your promise, and you will feel as though you have truly earned your keep. More importantly, you will win the battle of perception with clients and be that much more likely to retain their business.
Focus on Providing Value
An MSP business that provides legitimate value is likely to stay in business. Zero in on what separates your business from the pack, keep your clients happy, and you will likely avoid common pitfalls. Above all, make sure your prices are high enough to keep your business in the black and it will be that much easier to absorb the cost of a mistake.