Business expansion and scalability are the ultimate objectives for any business owner. However, the path to success is rarely straightforward. It requires the right combination of strategy, execution, timing, and even a bit of luck. Understanding your industry landscape and your customers’ needs is crucial.
High profit margins signify success and growth for managed service providers (MSPs). Elevated margins bring several advantages:
1. Significant profitability: With high margins comes more profitability, allowing MSPs to allocate resources efficiently.
2. Investment in quality: Steady profit allows for talent, training, and state-of-the-art technology investments.
3. Innovation opportunities: High margins facilitate investments in innovative solutions that benefit clients.
4. Risk mitigation: They provide a financial cushion against cybersecurity and other risks.
5. Competitive edge: High margins enable marketing and customer support investments, differentiating MSPs from competitors.
The ideal margin range for MSPs varies based on factors like the MSP’s size, services, and location. According to MSP360, MSPs should target a margin range of 8% to 18%.
So, how can MSPs achieve these desirable high margins? One way is by offering automation solutions. This article will explore the demand for automation solutions and how MSPs can incorporate automation into their service offerings.
The era of automation
Automation is a transformative force, much like the internet’s impact on the way we work. Automation, artificial intelligence, and machine learning are rapidly changing work dynamics. While some fear these technologies might replace jobs, they are more likely to enhance productivity.
Ignoring automation is more detrimental than incorporating it into daily operations, especially given the rising demand for automation. McKinsey’s Global Survey reveals that over 70% of respondents reported their companies were piloting automation technology, emphasizing its importance.
Selling automation solutions to MSP customers
Why does it make sense for MSPs to offer automation solutions to their clients? Clients rely on MSPs as trusted advisors for technology-related advice and operational efficiency improvements. Clients often consult their MSP for guidance when they seek a new tool.
By presenting innovative solutions, MSPs can significantly enhance the value of their providing value-added services. Incorporating automation, such as an eSignature solution or a document workflow automation tool, yields benefits for clients:
1. Increased efficiency and productivity: Automation automates repetitive tasks, saving time, reducing errors, and enabling a shift towards strategic and revenue-generating activities.
2. Cost reduction: Automation streamlines processes, reducing costs related to overstaffing, error correction, and time spent on tasks. This frees up the budget for investments in technology and MSP services.
3. Scalability and growth: Efficiency and cost-savings from automation accommodate a client’s expansion plans, and MSPs can provide expertise as clients grow.
4. Reliability and consistency: Automation reduces errors, enhancing client confidence and satisfaction.
5. Enhanced security: Automation solutions often incorporate strict security and compliance protocols, strengthening client security and data protection.
Better client relationships lead to higher margins
Adopting automation significantly benefits the client-MSP relationship, improving efficiency, reducing costs, enhancing reliability, and fostering a collaborative partnership. These improved client relationships contribute to higher margins, achieved through:
- Lower labor costs and resource optimization: MSPs reduce labor costs and improve resource utilization.
- Revenue growth opportunities: Clients benefit from streamlined processes, leading to productivity gains and cost savings.
- Reduced delays and errors: Fewer errors result in increased productivity, time savings, and cost reductions.
- Diversification: MSPs can offer additional services and tap into new revenue streams.
- Value proposition enhancement: Clients are willing to pay higher prices for high-quality services, increasing the MSP’s value proposition.
Partnering with airSlate to sell automation solutions
airSlate offers a document workflow automation platform that empowers users to create powerful documents and automate workflows with a single, no-code platform. airSlate is an excellent solution for MSPs looking to enter the automation market, as it requires minimal technical expertise.
Clients increasingly demand automation solutions, and MSPs can fill the knowledge and resource gap by offering automation via airSlate. This partnership can yield thousands of dollars in additional revenue annually, benefiting clients.
The airSlate partner program simplifies the process of offering automation to existing clients, providing dedicated support from partner account managers and solution architects. MSPs can gain market development funds by completing a selection program.
