What it takes to run a successful managed services business.

Getting all the pieces to fit together and run on all cylinders for a successful managed services business requires very tight control. It is a very difficult task.
Launching a managed services business and growing the top line steadily (10-15% or more) is a relatively easy task.
Similarly, tightening up an already running managed services business.
Achieving strong profit margins (30%+ gross, 15%+ EBITDA) is also not a very difficult task.
However, growing a growing managed services business and achieving high profitability is one of the most difficult things to do in the IT industry.
I will outline what has helped me to effectively steer the ship of my managed services business.
It will help you in several ways in planning and running a managed services business.
It is a detailed three-year operational plan, a discipline of effective operational management, a series of reports to track progress, and a means of inspecting the reports and business to monitor progress.
Running a managed business effectively always starts with a three-year strategic management plan.
This is a detailed examination of the market (customer requirements, competitors, etc.), the products you offer, and ways to enter the market.
A detailed review of the market (customer requirements, competitors, etc.), your offerings, go-to-market plan, delivery, tools, customer management, etc. to promote a competitive and differentiated business.
Drive a competitive, differentiated, and sustainable value proposition and business. An important part of that strategic plan should be the three-year business plan that accompanies it.
Since three years is not forever, I consider this to be important as a little guide to keep measuring my business.
However, it is very important to have this three-year plan as a guide to evaluate your business.

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