Navigating the Operational Efficiency vs. Scale Conundrum for MSPs


As the owner of an MSP business, you’re always on the hunt for new opportunities. But limited time and resources mean taking on larger and more profitable clients is not as easy as it may initially seem. With recent stats showing that over 60% of MSPs report less than $2 million in annual revenue, the question is clear: Can MSPs scale their business, while remaining operationally efficient?

The answer is yes, however, it requires a structured approach involving concerted planning, efficient processes, delegation and outsourcing.

Building a profitable MSP business model With B365

At Benchmark 365, we offer a twofold approach to support MSP business owners in building a profitable business model. Firstly, we provide outsourced tech support that is tailored to the unique needs of each MSP, allowing them to scale effectively while maintaining high levels of customer service and operational efficiency. Secondly, we equip MSP owners with a suite of resources designed to assist in planning for growth and achieving their benchmarks for success. This strategic guidance is aimed at enhancing an MSP’s value proposition, aligning with client needs, and optimising processes for maximum efficiency and profitability.

Challenge and Solution: Staffing and Outsourcing in MSPs

Challenge for MSPs

While hiring more staff may seem like a straightforward solution for ambitious MSPs looking to scale, it often proves to be inefficient. Recruiting new employees is a time-intensive process, a challenge echoed by  30% of MSPs who cite finding competent personnel as a primary difficulty.

Hiring and onboarding in-house staff is always a significant challenge for MSPs. The process of finding the right candidates, conducting interviews, and integrating new hires into operations is time-consuming, often taking months before new employees significantly contribute to the business.

Benchmark 365 Solution

Benchmark 365 offers a strategic solution for MSPs seeking to optimise their operations through outsourcing. By partnering with our helpdesk specialists, MSPs gain access to a team of trained professionals providing 24/7 support. This arrangement significantly reduces the costs and complexities associated with recruitment, training, and maintaining in-house technical staff. The service is designed to be scalable, enabling businesses to expand their client base without necessarily increasing in-house staff proportionally. This scalable approach allows existing staff to concentrate on core competencies and develop specialised skills, further enhancing the MSP's competitive edge in the market.

Tips for Maximising Outsourcing Benefits

  • Identify Support Needs: Determine the specific areas where your MSP requires assistance, like server migration, security, or general IT support.

  • Streamline Notifications: Ensuring effective communication of critical updates to clients is a key aspect of outsourcing. At Benchmark 365, the focus is on ensuring that all significant updates and alerts are efficiently communicated to your clients. This system of streamlined notifications is designed to maintain transparency and keep clients well-informed, ensuring that they receive timely and relevant information regarding their IT infrastructure. This approach helps in building trust and reinforces the reliability of your MSP services.

  • Clarify Communication Channels: Establish clear protocols for urgent tech issues, leveraging dedicated points of contact within your software platforms for efficient hand-offs and superior customer service.

By outsourcing tech support to specialised partners like Benchmark 365, MSPs can strategically address staffing challenges, streamline operations, and position themselves for scalable growth and enhanced service delivery.

While it might seem like you’re stepping out of your comfort zone – whether it’s outsourcing your helpdesk support or getting out there and selling your business– that is the key to being able to scale your business.

“Whilst at times I do miss being on the front line of support, I’ve realised it’s impossible to continue to scale like that. Benchmark makes it possible for me to grow my business” Jon Dawkins, founder and Director of Atlas IT

Setting Your Benchmark for Success: Metrics and Scaling for MSPs

Creating a roadmap for success in the MSP industry involves establishing clear benchmarks. These benchmarks act as measurable goals, guiding your business toward strategic growth and scalability. With Benchmark 365's helpdesk support service and resources like our annual planning exercise, MSPs can set precise targets and track progress effectively. Here's how setting benchmarks contributes to scaling and success:

  1. Identifying Key Performance Metrics: Identify the metrics that matter most for your MSP. These can include customer satisfaction scores, response times, revenue growth or client retention rates. Establishing these metrics helps in focusing efforts and resources on what truly drives business growth (this exercise will help you in doing this).

  2. Monitoring and Adjusting: Regularly tracking these metrics enables you to see where your MSP stands in relation to its goals. This ongoing monitoring is crucial for making timely adjustments to your strategies. It helps in maintaining alignment with your benchmarks and adapting to market changes.

  3. Enhancing Operational Efficiency: Setting benchmarks for operational efficiency, such as average resolution time or utilisation rates, can significantly improve service delivery. Benchmark 365 aids in this aspect by offloading routine tasks, allowing your in-house team to focus on areas that directly contribute to these efficiency metrics.

  4. Scalability Through Measured Growth: By setting and meeting benchmarks, you create a scalable growth model. This means expanding your service offerings or customer base at a rate that is sustainable and manageable. Benchmark 365's flexible support model is crucial here, as it allows MSPs to scale up or down based on demand, without sacrificing service quality.

  5. Client-Centric Benchmarks: Setting benchmarks around client satisfaction and retention helps in maintaining a customer-focused approach. Happy clients are likely to bring repeat business and referrals, contributing to your MSP’s growth.

  6. Financial Health Metrics: Establishing financial benchmarks like profit margins, cost savings, and revenue per employee can provide a clear picture of the financial health of your MSP. Partnering with Benchmark 365 can contribute to achieving these financial goals by reducing operational costs and enabling more strategic resource allocation.

By setting and striving to meet these benchmarks, your MSP can ensure it is not just keeping pace with the market but is positioned for continuous growth and success. Benchmark 365’s role in this process is to provide the support and tools necessary to achieve these benchmarks, enabling your business to scale effectively while maintaining high service standards.

To scale your MSP business effectively while maintaining operational efficiency, discover valuable insights with Benchmark 365's resources.  Download the "Craft Your MSP Benchmark" exercise to set clear, achievable goals for your MSP. Also, tune into the [How MSPs Can Break Free from Operational Overload] podcast for expert strategies to optimise your operations. Unlock the potential of your MSP today!

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