A recent survey in the channel, carried out by CRN Channelweb, has confirmed a trend that I have been talking about for over 12 months in my posts.
The article published recently confirms the trends for salaries and highlights where the required skills shortages are within the channel, and the shift from technical delivery professionals to new business development professionals, in terms of rising wage demands.
This presents a problem to the sector as a whole because there are 2 reasons why the salaries being paid to business development professionals are the fastest growing in the channel; they are in high demand and the professionals possessing these skill-sets are not out there in the volume required to satisfy demand, and sadly not every MSP or VAR requiring the skill sets supplied by effective business development professionals, are going to be able to get them!
In writing this post I am conscious that I can bring a wide and unbiased perspective to this argument; having come to this sector from other sectors, I am not biased by the past business models for success in the channel, which tended to evolve around the need for good account management skills, in order to maximise the opportunities presented by organic growth from existing customers, and the need then to have the technical work force to deliver the solutions.
However, like many established markets, a “Perfect Storm” of challenges is now forming over the MSP and VAR Channel and in truth, just like many other markets in the UK, the market is evolving at a dizzying pace and nothing will ever be as it was again.
In reality market conditions have never been harder for MSP's and VAR's; with non-receptive target audiences combined with the shift towards cloud services, ever-decreasing margins from hardware and software, and rapid consolidation in the channel (all of which have already led to the channel in the States shrinking by an estimated 36% since 2008).
With most UK resellers adapting to these challenges by refocusing their business models and transitioning towards MSP, Consultancy or Cloud Provider status, the battle for new customers is well and truly underway, but this has led to the market sector being massively over supplied and this has led to many businesses effectively “Treading Water!”
Only now has the penny dropped that the phone in the sales department has stopped ringing and that many businesses haven’t got the first idea about how to take a ”Value Proposition” out to targeted market sectors in order to develop new business streams.
Compounding this is the fact that good business development professionals have shunned the channel and the idea of working in the sector, because in the past the channel has not needed them, so they chased the far higher levels of remuneration offered in other sectors. Sure you may well be able to lure them back with an increase in their already healthy salary, but bearing in mind you have probably never had to appoint for this role in your business before, how do you start about thinking about the responsibilities of the role, the levels of success that should be achieved and the package you should be offering?
To make matters worse I feel this trend in salary rises is likely to continue; we have the technical skills required in the sector as a whole and available on demand, via an established outsourced resource network, and you can always purchase the skills required on the open market as and when required. But this is not the case with proven business development professionals which is unfortunate because now, at your moment of need, they are not out there in the numbers required.
Luckily help is available to the owners of MSP’s and VAR’s looking for the answers to the challenges that growing sales pipelines and delivering sustained growth present; my fellow directors and I have over 40 years combined experience in growing businesses, including growing an MSP from £900k to £3.5 Million turnover during the last recession, and as such, can deliver sales, operational, business development and marketing experience that is IT sector specific, straight to your door.
Working on a flexible basis around the needs of your business and supplying the skills and expertise required in order to succeed on your behalf, we have already constructed and delivered highly targeted sales, marketing and business development campaigns for MSP’s and VAR’s, building bespoke product offerings including public Wi-Fi services, secure cloud based hosted desktops and traditional IT infrastructure services, for companies looking expand into the Pharmaceuticals, Law, Independent Schools, Recruitment, Accountancy and Financial sectors, to name just a few.
In many cases we build and run the campaigns from the ground floor up, operating as outsourced sales and business development resource partners, or alternatively just build the highly targeted and effective marketing campaigns required to feed your sales operation and to drive growth to your business.
We know how to build these models, they are “Current” and continually evolving, we know how to target and speak to the decision makers in your target markets and most importantly, we know how to grow your business and make you money!
If this post has resonated with you and you would like to explore how we can help you achieve your growth aspirations, then please do not hesitate to contact myself or my colleague Jane Gatfield on 0118 947 1010, or email us at andrewb@virtuosoconsultancy.co.uk or janeg@virtuosoconsultancy.co.uk.
For more information about our services please visit www.virtuosoconsultancy.co.uk
To read more posts covering all aspects of sales, marketing and business development for MSP’s and VAR’s, please visit our blog; to http://it-business-growth-strategies.blogspot.co.uk/
DOWNLOAD THE WHITE PAPER This post forms a small portion of a white paper I have written covering The Art of The Approach, a specific sales based white paper written for the IT Sector. To request a copy please email me directly at andrewb@virtuosoconsultancy.co.uk
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