Why are other people invoicing your customers?

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Managed services pic Internet Providers, Email Hosts, Web Hosts, Phone Companies and Anti-Virus providers are billing your customers for their services. Why aren’t you replacing their invoices with yours?

This was the hot topic at April’s Melbourne Chapter meeting where SMBiT Professionals member, Kieran Murphy, Director, Data Parts Shepparton shared a brief summary on how you can leverage resources available through SMBiT Professionals to create some managed services.

Over the last three years Data Parts has added $250,000 per year in recurring revenue by utilising the services available from SMBiT Professionals partners sponsors as well as leveraging the SMBiT Professionals peer support network. None of this income includes billed hours – the ‘bread and butter’ of a break/fix business. Importantly it has also allowed Data Parts to standardise it’s offering to business customers which has enabled technical staff to stop putting out spot fires and focus on providing IT solutions to customers.

Managed Services is often seen as a daunting transition or addition particularly for smaller IT business owners as you are changing the fundamentals of your business and business model but with the resources available through SMBiT Professionals the path is simpler than you think. With access to leading industry partners offering solutions to supplement your business the rewards of recurring revenue, ongoing product development, customer loyalty & satisfaction are significant. It is a key opportunity not to be missed for SMB IT business owners and professionals.

Kieran started his managed services offering three years ago with the objective of reducing how much time was spent re-actively ‘fighting fires’ at client sites. Over time this reactive approach has turned into a proactive management of customer networks resulting in better outcomes for clients, increased revenue for Data Parts and reduced stress for the IT staff.

Standardised solutions have made support and management of client networks much more efficient whilst providing more effective and better value IT solutions for clients. The message Kieran delivered to the Melbourne chapter was clear; the reactive Break/Fix model of IT management is gone and IT providers must move to a proactive model to keep up with the industry. Proactive management and engagement with industry leaders and peers will deliver better outcomes for their clients, their staff and their businesses.

For a more detailed explanation on how to create a managed services department within your business, Kieran will be presenting on this topic at SMBiT Professionals National Conference in October, register now.

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