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How my Business works - the one man MSP.
I wanted to do a show and tell. I'm going to show you mine and hopefully you guys don't think its too bad. A little background on me first. I started my MSP about 8 years ago as a one man show and still am to this day. Between my MRR of 20k, project work, and hardware/software reselling I gross between 300k and 400k in a year. I'm in the process of partnering with another guy who is in a similar place as me. Our biggest pain point is vacation. Both of us are on top of our client base so there isn’t any problem with the amount of tickets that come in. Second biggest problem is actually acquiring new clients. Word of mouth only gets you so far. I have never lost a client because I'm very competitive on price and because I do good work. Things work well and in the event of a disaster I have them covered.
I generally average around 15 hours a week on actual tickets while at the end of the month I spend another 10 hours reviewing servers, reports, backups, etc.
So, to get into the nitty gritty here is how my business works. I have 10 MSP clients and another 5 break fix. I manage around 215 end points. I go onsite maybe twice a week and everything else is managed remotely. I operate out of Southern California. I have received offers from much larger MSPs to buy me out based solely on how I present my company. I then laugh and tell them the truth and they are impressed but no longer interested in purchasing me. Good thing too cause I'm not interested in selling. I make a living taking clients off the bigger guys who screw things up so badly their clients are forced to look for someone they can actually talk to on the phone. I would position myself as Bespoke or boutique IT.
My Internal Stack:
Office 365 through Action Pack subscription for e-mail. I use Fonality for my 800 number and my local contact number. Everything forwards to my cell phone. Clients still call my cell phone anyway. I use Quickbooks for book keeping and I find its not perfect but allows me to track things well enough that I don’t really consider moving away from it. I use Screen Connect and GFI MAX. I sell Meraki religiously. I have on hand in my garage an additional server for the day when my clients need something ASAP until we can order one. I also have on hand usually 4 or 5 decent brand new workstations and monitors. I have all of my documentation in Evernote, dropbox, and my e-mail.
My Clients Stack:
Workstations and Servers: I sell Dell hardware almost exclusively. I don't believe HP to be worse as far as the product is concerned, just worse as far as relationships are concerned. They are much harder to deal with and solve problems through. Dell isn’t perfect and lately their pricing has been starting to trouble me but I consider HP to be worse in almost every way. All hosted email is with Office 365 and I am trying to push as much of my clients Office licenses to O365 as well. I know there are ways I can make more money with this but I value the ease of use more than anything.
Network Equipment: Meraki all the things. MX appliances and APs where I can. The switches are a hardsell so I usually end up with Procurves and they work very well. The security and reporting on the MX appliances makes my job so much easier. As part of my MSP contract I own the MX appliances and I charge them monthly for them. For instance I might pay for the MX64 with a 3 year advanced security license, but I then charge the customer $150 to $200 a month for managed firewall. The device more than pays for itself in the first year.
Backups: For file and folder I have a cloudberry account setup to store 5 to 10 versions of every file to Amazon S3. I have around 10TB sitting on amazons cloud. No complaints. I have a large server sitting in my house that has around 8TB or so of data where I send my clients image backups to. I use storagecraft for this, again no complaints. All data is encrypted and occasionally dumped to external hard drives in the event of a fire or theft I have their data still. I obviously have a hefty battery backup for the server so its got very good up time. My residential internet connection is insanely fast and has very good uptime. All of my customers have BDRs that I have made. Windows 2012 R2 (SPLA) and between 8tb and 16tb. Xeon processors and 32GB of ram. They run pretty much anything my clients can throw at them in the very rare event that things go sideways with their hardware. I have tried hard to minimize the monthly outlay of cash when it comes to backup so my clients all purchase the Shadowprotect software. I lease them the BDR and it contributes to my monthly MRR as I absorb a one time cost but it pays for itself 10x over through the life of the hardware. BDR with no offsite replication starts at $300 a month. BDR with offsite replication starts at $500 a month.
RMM: I currently use GFIMAX with BitDefender and their web shield product. After a lot of thinking I realize I don’t really spend much time in the GFI console. I'm thinking of purchasing Manage Engines desktop central 9 for a one time payment instead of paying GFI every month. The ROI would be around 16 months. I don’t really need much more than the odd reporting, backup remote access, 3rd party patch management (I use WSUS for MS patches), and the ability to run the odd maintenance jobs. I really like the ability to monitor my AV from a SPOG as well as web filtering so I will probably be going to trend micros web product. I have also considered Ninja RMM.
Vendors: As mentioned Dell. I also work with Ingram Micro but have started sending all my business to Synnex. I have found them much more responsive and pricing to be competitive. I actually purchase quite a bit for resale from Amazon and Microcenter when the prices are right. I also regularly purchase stuff for internal use from Tiger Direct and occasionally Newegg. I pay tax on the stuff purchased from resale stores and then pass it on to my customers if I mark it up. I'm aware that with a few of the retail outlets I can put my resale certificate on file, I just haven’t done it yet.
The Good and the Bad
The bad things: I don’t have SLA's. I have always just had things running and nobody has ever asked for them. I have no sales pipeline. My contracts could use some work. My documentation could use some serious work.
The Good things: My average client is around $2200 a month and only takes about 5 or 6 hours of my time a month.
Edit: Just to be clear. I don't think I am a good example of how to run this business. I'm just sharing my experience of how I have stumbled through and made a living. I am happy to answer all questions but please dont look at me as a success story.
IT Solution Advice
There is a list of things that they are looking for, and through some research I feel I've found some adequate solutions, but I'm just not 100% sure. Here is a list of what they are looking for, as well as my ideas for each:
- Remotely accessible data (i.e. a "Cloud" service)
- Own Cloud seems really good for this. We are up to setting it up and getting everything configured ourselves.
- AD Management
- I was thinking just purchasing a server for $1,000 or so (likely from Server Monkey), rack-mountable or tower, and installing Server 2008 R2, or maybe Server 2012.
- They mentioned that they might be interested in a server that hosts email as well. Would SBS 2011 be worth it for a small company of 5-10 people? They are planning for growth, which this would allow for
- Alternatively they could simply use a server for Own Cloud, which they will also access locally for files, then have hosted email
- Backups, both of servers and workstations
- I really like Shadow Protect, both for servers and desktops. They will be primarily a Windows and Mac shop though, but we could do SP for the Windows OS's and Time Machine for the Macs.
- I found CrashPlan and it seems very good. Even the free version seems like it would work well
- Will likely suggest rotating externals for off-site storage
- Surveillance cameras (4 total)
- I have absolutely no idea what to do for surveillance. I do not have much experience in this area.
- Network solution