If you’re thinking about starting an MSP business, it’s important to consider what unique skills or services you can offer that will make your business stand out and attract clients. It’s tempting to create a menu of MSP offerings based on what other successful providers are doing, but you also need to differentiate yourself from competitors.
The real challenge is figuring out what makes your MSP unique and valuable, then communicating that clearly to potential clients. Maybe you can specialize in cybersecurity for healthcare providers, or perhaps you have a creative approach to cloud migrations that saves clients time and money. Whatever it is, you need to highlight what sets you apart.
From monitoring to security: Fundamental MSP offerings
Most MSPs start with a basic set of services:
- Network monitoring and management
- Help desk support
- Data backup and recovery
- Patch management and software updates
- Basic cybersecurity (antivirus, firewalls)
These services are crucial because they address the fundamental IT needs of most small and medium-sized businesses. They help keep systems running smoothly, prevent downtime, and provide a safety net for when things go wrong.
For example, an MSP might offer 24/7 network monitoring to catch and fix issues before they cause problems for the client. They might also provide help desk support so employees can quickly get help when they’re stuck with a tech issue.
Why these are important, but not enough to differentiate
While these services are essential, they’re also what every other MSP offers.
When every provider offers the same basic services, it becomes a race to the bottom on price. Clients start seeing MSPs as interchangeable, and it becomes harder to justify higher rates or retain customers long-term.
To stand out, MSPs need to go beyond these basics. You need to offer services or approaches that truly solve your clients’ problems or give you a competitive edge.
Here are some examples of specialized services to consider:
- Email authentication setup (SPF, DKIM, DMARC)
- Microsoft Teams setup and management
- Website maintenance and security (especially for WordPress sites)
- Medical equipment managed services
- Guest Wi-Fi setup for businesses
- Custom PC build
- MSSP services, like SIEM and EDR
Phase one: Craft your offering
Whether you’re a new MSP or looking to expand your managed support offerings, here’s how to develop a tailored set of services that meets the needs of your clients and sets your MSP apart from the competition.
1. Know your strengths
As an MSP, you’ve probably felt the pressure to be a jack-of-all-trades. But here’s the truth: You can’t be great at everything, and trying to be will only stretch you thin and stress you out.
Instead, take a good, hard look at what your team is really good at. Maybe you’ve got network infrastructure whiz on staff or your business continuity planning is smoother than butter.
Here are some ways you can uncover your strengths:
- Sit down with your team for an honest chat. Ask them what kinds of projects they enjoy most, where they feel most confident, and where they’ve had the biggest wins.
- Look at customer feedback. What are clients praising you for? What keeps them coming back? Set up casual coffee chats or quick phone calls with your best clients and ask them what they value the most about your service, what problems you’re solving for them, and what else they wish you could do.
- Look at the deals you’ve lost. When a potential client goes with someone else, don’t just shrug it off. Reach out and ask why. Was there a specific service they needed that you couldn’t provide?
2. Define your ideal customer
You’ve probably had those clients who constantly haggle over prices, demand services you don’t offer, or call at 2 a.m. for non-emergencies. It’s exhausting. That’s why it’s crucial to define who your ideal customer is.
Start by thinking about your favorite clients. What makes them great to work with? Maybe they’re in a specific industry, like healthcare or finance. Perhaps they’re a certain size, with 50-100 employees. Or maybe it’s about their attitude — they value proactive IT support and are willing to invest in it. Write all this down. This is the start of your ideal customer profile.
Now, dig deeper into their world. What keeps them up at night? Are they worried about cybersecurity breaches? Struggling to keep up with remote work tech? If you’re not sure, ask them. Send out a quick survey or have your account managers ask during their next check-in.
Tip: Create a one-page “ideal customer profile” document. Include details like industry, company size, budget, tech stack, and main pain points. Share this with your team and use it to guide your marketing and sales efforts.
3. Decide whether to specialize or generalize
Being a generalist means you can cast a wide net and potentially get more clients. But specializing in a niche could mean higher profits and less competition.
If you go the specialist route, you can become the go-to expert in your chosen field. For example, if you focus on healthcare IT, you’ll have to learn all the ins and outs of HIPAA compliance, how to back up records and protect data, and understand how to keep medical imaging systems online. This extra effort and deep knowledge can justify higher rates and lead to more referrals within the industry.
But specializing isn’t without its risks. What if your target industry takes a downturn? Or what if you get bored working with the same type of client all the time? These are real concerns that many MSPs grapple with.
On the flip side, being a generalist means your business is better able to withstand market fluctuations. You can work with a variety of clients and industries, which can be more interesting and potentially more stable if one sector hits hard times. However, you might find yourself constantly competing on price and struggling to stand out in a crowded market.
So how do you decide?
- Market demand. Consider what companies need the most. If there’s a high demand for certain services, specializing in those areas can help you attract more clients. For example, during the pandemic, companies needed help adapting to remote work.
- Competition levels. Take a look at how many other MSPs are offering similar services. If there are already a lot of providers specializing in one area, it might be harder to stand out.
- Long-term industry trends. Stay informed about where the industry is headed. If there’s a growing trend toward remote work and cloud computing, specializing in those areas can bring in more work.
- Your ideal client profile. Think about who your ideal clients are and what they need. If that’s small businesses that need comprehensive IT support, generalizing might work well. But if you want to serve larger companies with specific needs, specializing can help you meet those demands.
You don’t have to go all-in on specialization overnight. You could start by developing expertise in a particular area while still serving a broader client base. This lets you test the waters and see if specialization is right for you without completely overhauling your business model.
Phase two: Build your MSP service package
Focus on putting together a well-structured service package that clearly outlines what you offer and how it benefits your clients.
1. Package your services
Standardized, comprehensive MSP packages can make your life a whole lot easier.
Instead of confusing potential clients with a menu of options, you’re presenting a clear, “this is what we do” proposition. It’s easier for clients to understand and easier for your team to sell.
A standardized offering also makes your operations smoother. Your techs don’t have to remember which client gets what service — everyone gets the full package. This can lead to better service overall and fewer billing disputes.
That said, tiered or à la carte options can make sense in some situations. If you’re dealing with a diverse client base — say, from small shops to large enterprises — you might need different levels of service to meet client needs.
There are ways you can make your services appeal to a wider target audience. For example, you might add value through consultative approaches where you help clients understand and plan for their tech needs. Or you might incorporate virtual CIO or strategic planning services that offer high-level guidance and position you as a strategic partner.
2. Price for profitability
Here’s the hard truth: if you’re not pricing for profit, you’re setting yourself up for a world of hurt down the road. Obviously, you want to be competitive, but you also need to keep the lights on and pay your team.
Start by getting crystal clear on your costs — salaries, software licenses, office space, even that fancy coffee machine in the break room. Don’t forget to factor in time for admin work and unexpected issues.
Once you know your true costs, decide on your target profit margin. Don’t be shy here — aim for at least 20-30%.
Tip: Use a value-based pricing model. Instead of saying “We’ll charge you $150 per hour,” try “We’ll keep your systems running smoothly for $2,000 per month.” This shifts the focus from your time to the results you deliver.
3. Identify service gaps
There is always a risk that you’ll lose customers to competitors who offer services you don’t. But how do you figure out what those missing services are?
- Talk to your current customers. Set up quick check-ins and ask them what other IT needs they have that you’re not currently handling.
- Look at your support tickets. Are you constantly getting requests for something you don’t offer?
- Assess service gaps based on the potential revenue they represent. Maybe you keep losing deals because you don’t offer managed backup services, or you don’t have a way to monitor devices in real time.
4. Saying no: What to leave out
Not all work is good work. Taking on projects that don’t fit your expertise or business model can be a huge drain on your resources and morale.
Start by looking at your past projects. Which ones were a nightmare? Which ones barely broke even? These are the types of work you should avoid. Maybe it’s one-off projects that disrupt your managed services workflow, or clients in industries you’re not familiar with.
Once you’ve identified the past projects that didn’t work for you, create a “no-go” list and share it with your sales team. When prospects seem like a bad fit, your sales team can politely suggest they work with a different provider.
Next steps for MSP offerings
Creating effective MSP service offerings is all about understanding your strengths, defining your ideal customer, and finding ways to stand out in a crowded market.
Review what you currently offer, gather feedback from clients, and refine your services to better meet their needs. By continuously improving, you’ll keep your clients happy and be able to scale your business.
Ready to launch your MSP offerings? Read our guide to mastering pricing for growth.
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