As MSP owners’ thoughts start to turn towards 2019 and the challenges that the year will undoubtedly bring, I thought it worthwhile exploring an issue that not all of you will be aware of.
Those of you who know me and/or follow our blog will know that I have enjoyed a career seeking out opportunities in evolving markets and when those traditional markets are being put under pressure by third party businesses challenging the way business is done.
After many years of constructing and delivering successful sales, marketing and business development programmes for MSP’s and VAR’S, I can assure you all that market conditions have never been so challenging and that changes to traditional IT provision are changing the IT sector in ways that have never been experienced before.
Those of you who read our post at the start of this year; An MSP Or VAR?,,,,, Are You Going Into 2018 With The Right Team, will be aware of some of the challenges being faced by the sector and how this is changing both the importance of certain roles within the business and the salaries being paid in order to acquire the skills you will need to acquire, in order to survive and grow in the current market.
The article discussed the importance of successful new business development professionals, not traditional account managers, and how these very rare and in demand professionals are now enjoying the highest rate of salary increase in the sector. So I thought it worthwhile exploring just what these professionals will bring to your business and the dangers that are posed if you don’t, and I can do this because I am one myself and know what will be required, so let me take you all on an imaginary journey, but one that some of your competitors will be going on.
Let’s imagine that I have I have joined your business and we are having our first strategy meeting, I would probably start with a presentation to you and the senior shareholding directors and the brief version would be as below;
Market Conditions
We have some major challenges; currently the market has a “Perfect Storm” forming over it involving customer fatigue, the relentless demand and transition to cloud based services, apathy towards some traditional products and services, lethargy to change and over supply in provision for services. Think of the market as being like a game of musical chairs, when the music stops we will all be fighting for a chair in order to remain in the game and unfortunately, there isn’t just 1 too few chairs, the rate of chairs available to players means that probably 35% of the companies currently playing the game will be out of the game when the music stops.
Difficult Choices
Someone once said to me that “A recession is defined by your neighbour losing his house, but that a depression is defined by you losing yours!” Just let that sink in for a moment because for many of you, and just like me, your business is your life’s work but it is an inconvenient truth that not everyone can survive this market and we are going to have to roll with the punches and get down and dirty, so don’t be shocked by the rest of this presentation.
The New Business Development Reality
OK, so now that I have set the scene, time for some realities as to what that means in a daily operational sense and in what I will be doing on your behalf when I come into the office. I will start by advising you of the mind-set of our customers because this will go to heart of how we move forward, because we have what I affectionately call a “Lethargy To Change Market” to target. It is termed thus because the first purchase market has been exploited, everyone has an IT infrastructure and services provision, so in essence our challenge is to target the customers of our competitors, undermine that existing relationship and convince them to change to our business.
Now this is an important moment of understanding for people because where else is the growth and financial security that this future growth provides going to come from? It is the only game in town, it is why everyone can’t win and why so many MSP’s and VAR’s will fail over the next 1 - 5 years. This may sound harsh and overly aggressive but sometimes the person delivering the bad news is the person you should be listening to the most.
In general the sector is waking up to this fact but does not know how to achieve this, because it has never had to operate in this way before, thus why genuinely successful new business development professionals are so sought after. But this can be achieved; I would reassure you at this point that we are ahead of the game and that I know how to target competitors businesses and undermine these existing relationships on your behalf. Sure there is much work to do and I will challenge your product and services offerings and perhaps tell you some harsh truths because the pace of development in some competitor offerings is astonishing but luckily, for now, they probably don’t know how to communicate that in a language that the customer understands and that adds value for the customer.
As a successful new business development professional I will turn things on their head, change perceptions and put the customer at the heart of what we are doing, because as long as we provide solutions to the genuine problems our customers face, and we can communicate that, we will have a business, so all hope is not lost. It will only become lost when your competitors take the initiative and get hold of the skills required before you do, because then, they are targeting your customers and this will be happening to a lot of you reading this post.
So just what is the solution to finding the right new business development professional for your business? Well you either get involved in the very expensive race to acquire the individuals required or you look for an alternative solution, should you be able to find them first, but then baulk at the prohibitive financial nature of acquiring them.
Well, all is not lost because 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; The Virtuoso Virtual Sales Director, a service was discussed in great detail in our previous message; Introducing … Virtual Sales Director for MSP’s and VAR’s.
My fellow directors and I have over 40 years combined experience in growing businesses, which included co-owning and running an MSP for 10 years during which time I grew the business from £900k to £3.5 million. As such we can deliver MSP-specific sales, business development and marketing strategy knowledge and experience straight to your door.
More Information
If you would like to find out more about our Virtual Sales Director service, please email andrewb@virtuosoconsultancy.co.uk.
Alternatively if you’d like to find out more about our outsourced marketing services or business development consultancy for IT companies, please contact us on 0118 947 1010, email janeg@virtuosoconsultancy.co.uk or visit our website at www.virtuosoconsultancy.co.uk/IT_companies.
To read more posts covering all aspects of sales, marketing and business development for MSP’s and VAR’s, please visit our blog at https://it-business-growth-strategies.blogspot.co.uk/
DOWNLOAD THE WHITE PAPER
This post forms a small portion of a white paper we 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 andrewb@virtuosoconsultancy.co.uk
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