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Why New MSP/VAR Start-Ups Are On The Rise

Over the past year, we have seen a steady increase in the number of new entrepreneurs starting up their own VAR/MSP business. With VAR Office Suite, this new breed of entrepreneurs can easily fast track the process of setting up shop within just a few weeks instead of months or years. They can also get the job done professionally and affordably with pay-as-you-go costs.

Today, a start-up can be up and running with a professional web site, e-commerce, e-procurement, IT consultation practice, service automation, CRM, accounting, marketing, managed services, Cloud and BYOD in just a matter of a few weeks.

VAR Office Suite has brought together all of the tools and services that any VAR or MSP needs under one roof. Simply select the tools and services that you need to get started and then add as you grow. It is an exciting opportunity for VAR Office Suite, but what is causing the growth of new start-ups getting into the business and who are they?

It was easy to figure out that the vast majority of new start-ups were coming from people who worked for other VARs or MSPs. However, to answer the other question, we started to ask them why they decided to make the move to finally go out on their own.

Here are some of the reasons we found:

  1. Past employer was simply stuck in a wait-and-see-mode. Decisions to move forward simply stalled and focus was always trying to make the best of the older business model.
  2. There was little, if any, progression to adopt the new business models of recurring revenues such as managed services, Cloud and BYOD.
  3. Their take-home earnings were decreasing as the employer had to deal with shrinking margins and trying to squeeze more revenues from the older business practices.
  4. Their clients were switching to other competitors as they were being enticed by new offerings that were much more cost-effective than what their current employer had to offer.
  5. Poor leadership from the employer and their vision of the future was dismal. They continue struggle to transform their ways of thinking and doing business.
  6. Poor communications with owners about the future direction and plan.
  7. They felt alone in finding ways to generate more revenues as they were blamed for clients leaving and the thinning of margins.
  8. They felt it was time to take control of their life and future and not leave it up to chance.

When many of these new entrepreneurs started to contact us, they were simply trying to find some tools to help their employer to improve their business. They understood what some of the VAR Office Suite of tools and services could do to transform the business and get them on the right path to success. Unfortunately, their good efforts were ignored and decisions to do anything were simply left hanging. Some felt it was like the management had their heads buried in the sand.

Out of this ongoing frustration, some of these brave people decided to become an entrepreneur. Most are working from their homes. Many have since convinced others to join them to expand the expertise of the business.

Typically these entrepreneurs are made up of some of the top sales reps and technicians. They leverage their relationships to actually entice some of their past clients to do business with them. They also leverage past relationships with vendors and distributors to build a supplier network.

While this is good news for this new breed of entrepreneurs, it may spell more bad news for the VARs that they came from. If there is a moral to this story it is probably that if companies choose to stand still and not embrace the new changes to grow, then their employees may leave. Staff is a huge resource for any company to loose and it is likely to impact the business negatively.

VARs who are still on the sidelines just watching the game should find a way to get back into the game. Lead their company down the path to the new World of success. Engage their entire staff and seek out solutions to rebuild a better business. Strong employees will only follow strong leaders.

A slow bleed of human resources in combination with a constant erosion of clients is a sure path to failure. With margins already so thin and companies being enticed by the lower cost of IT solutions through Cloud, Managed Services and BYOD, there is little choice but to adapt to the new reality or face the consequences.

When we were gathering the key 30 tools and services of VAR Office Suite to help any VAR or MSP to streamline, manage and market their business better, we never envisioned that it would also empower more people to become entrepreneurs to start up their own IT business.

It may be wise for all VARs and MSPs to check under their business “hood” to ensure that they have the right engine for the journey ahead. Stalling may no longer be an option.

With all of the information flowing through the channel, most VARs and MSPs may already have a good idea of what they need to do, but they may need some reassurances before making the plunge. Start by taking the business evaluation test offered by VAR Office Suite through one of its partners FuseExpertise.

Go through the business assessment to truly understand your strengths and weaknesses. Once you are confident, then take immediate action to start improving your business one step at a time. Once your staff sees your new leadership and actual improvements, they will be reenergized and motivated to work with you to build a successful future. Your first step is to contact VAR Office Suite or someone who can help you to start the process.

We will be conducting a series of video interviews to expand on this content. Keep watching…