MSP Business Plan – Three Ways It Can Help Your Business Survive

Your MSP business plan is like a user manual, it maps out your road to success. Of course, you don’t intend to fail in your business venture; no entrepreneur would ever want that. But according to the US Bureau of Labor Statistics, only 5 out of 10 small businesses will be around in five years after opening their businesses doors. This only shows that the survival of your business can’t be left to chance. Despite the odds, your MSP business plan can guide you along with the twists and turns your business may take.

Here are three ways your MSP business plan can help you survive the seemingly uphill climb ahead.

Your MSP Business Plan Can Get You Financing

Inadequate access to working capital and other financing options is a huge contributor to your business hitting a wall, and ultimately fail. Sufficient ready capital is essential whether you’re just starting out or expanding your business. And it may take six months or more before your business becomes profitable from a startup.

If you don’t have enough cash to carry you through those lean months, your chances for long-term survival are not good. And the amount of cash you need should cover both business and personal living expenses.

One common option to secure funds for your business is through a loan. This can provide the funding to keep your business afloat until it becomes self-sustaining. But even so, you would still have to convince lenders that your business will be able to pay its financial obligations.

Your MSP business plan is the key to convince banks and investors, and gain additional funding for your business. Taking the time to research and then write your MSP business plan shows your commitment and seriousness. Your detailed financial projections for the next five years can also give them confidence in your being thorough in considering future scenarios. Even your exit strategy will give them assurance that they’ll get their money back should things not go as planned.

So the time you spend in writing your MSP business plan is an investment in itself. And your well-written business plan can help you gain the trust of banks and investors, thus securing enough funds to help your business survive.

Your Business Plan Sets Your Priorities

Failure to clearly define what your business offers, and who your customers should be, is a sure road to ruin. Trying to do everything for everyone may look like a good way to gain profit. But not every single client is a good fit for your business. And spreading yourself too thin affects the quality of service you provide.

Naturally, a client pays excellent rewards for excellent results. So if you want to attract these kinds of clients, it’s important to designate the scope and target of your services.

Your MSP business plan sets clear boundaries for your services, and how it benefits your customers. There may be occasions when it’s tempting to take on jobs that are beyond the scope of your services. But you would need more time to learn new skills, and this could end up with unfavorable results.

On the other hand, focusing on jobs that are within your scope assures a high-quality output. And your efficiency in accomplishing these tasks on time also means you can take in more customers.

And it’s not just ANY customers that you take in. Since your MSP business plan also defines your target market, you’ll only be going after clients that are profitable. These are the ones that meet the criteria of your ideal client. In turn, it will be easier for you to pinpoint their business needs and effectively offer a solution. This problem-solution strategy with your clients will be the lifeblood of your business.

Your business plan saves you time and money by providing definite scope for your services and your target market.

Your MSP Business Plan Lets You Adapt to Changes

It’s dangerous to assume what worked in the past will always work. One of the reasons why businesses fail is their failure to anticipate or react to competition, technology, or changes in the market. It’s not unusual for businesses to lose clients when their competition adapts with the times and does business efficiently. Some clients also prefer that you carry the latest technology, otherwise, you lose their business.

No market stays the same over time. So it’s important to take a step back and evaluate what you have done so far and what can be improved. This is where your MSP business plan can help out, even if you’ve been running your business for a while. Its SWOT (Strength, Weakness, Opportunities, Threats) analysis will help you diagnose the weak points in your business and plan a strategy.

For example, the rise of the Internet and social media has made it easier to reach more prospective clients than ever before. There is so much potential in online marketing, and your website is the first step in gaining a better footing in the market. If your competition is using online marketing to their advantage, think of what your business is missing out on. (You can find more info about online marketing in this article.)

So your MSP business plan is not just a document you create once and then do away with. It’s a living document that grows with your business and helps you deal with changes. Successful business owners review and update their business plans when the need arises.

It’s impossible to prepare and foresee every single detail, but your business plan should help you anticipate even rare events that could endanger the survival of your business.

It can help you get financing, set your priorities, and adapt to changes in the market. No doubt, the time you spend in writing your business plan will be all worth it.

If you haven’t written yours yet, you can download our free business plan template START IT RIGHT: How To Write Your Computer Repair Business Plan.