How MSPs can Choose the Perfect Vertical

MSPs can boost their business prospects exponentially by focusing on a specific vertical that’s perfect for them. But choosing where to focus their efforts can be daunting. With so many worthwhile industries that can be targeted, and so much at stake, it can be difficult to know where to begin. By considering the following points, you can find your perfect vertical and set your business up for success.

Let’s take a look at the process Managed Service Providers can use to find the Perfect Vertical that’s right for them.

Find a Good Match for You and Your Company.

If you’ve been in business for a while, you can start the vetting process by considering which of your current clients you enjoy working with. Prepare to get involved with the industry you choose. Particularly at first, so you can position yourself as a leading expert in that field. This means you might be attending industry-related conferences and other events, so it needs to be something that you enjoy learning about.

Some MSPs already have a vertical specialty in place, but they don’t fully capitalize on it. If several of your clients are in the same industry, or very similar industries, look into the specific needs of that niche. If you can provide deeper services in one particular area, like security or compliance, you can set yourself apart from the competition. Find a weakness and use it to your advantage.

Look at Your Team’s Expertise.

You may have some expertise within your team just waiting to be tapped. Maybe one of your employees used to work in IT for a mortgage broker, or perhaps someone on your team changed careers to IT after being a teacher. That means you can offer some expertise in banking or education, and you can build from there.

Make sure you or your Tech’s are certified in everything available so you can properly promote those skills. If someone on your staff was in the military, promote that fact. Part of branding your business is letting people your involvement in the local community. This is where you need to toot your own horn. Remember that it’s not bragging; you’re just letting people know the truth about your company.

Use Your Location to Your Advantage.

Which industries are prominent in your area? Perhaps your city is famous for its restaurant scene or is known as a hub for tech startups or scientific research. It is very helpful to understand what makes your city popular and what might need help. Determine whether those industries have tech needs that you could meet and start contacting them.

This relates to the branding of your company as experts in some area of IT. Get some of your best clients to record testimonials for you. And don’t forget to ask them if they know anyone who can use your services. Networking and word-of-mouth often generate your best leads.

Consider a New or Emerging Industry.

Look at the local market for any new or emerging sectors that might be a good fit for your business. If you feel like all the standard verticals are too competitive and you don’t see how you can get your foot in the door, modify your approach to target new businesses. In other words, keep up with trends. Grow your business as the city grows and changes around you.

Some verticals may decline over time, while new ones can suddenly appear and thrive. In the past few years, industries like IoT, artificial intelligence, cannabis, and 3D printing have all experienced tremendous growth. These are the types of industries where you can focus your energies. Many in these industries may not have a set provider with niche expertise yet, and getting to them early and earning their trust will help you grow alongside them and their peers.

Be Laser-focused.

When you’re choosing a vertical, being as specific as possible can provide great opportunities. Yes, you might be narrowing down the field of potential clients quite a bit, but if you’re the best in a particular vertical, you’ll still come out ahead. Start with what you’d like to acquire, then branch out from there.

While you might focus on broader categories at first when you’re still getting a feel for which part of the industry you want to work with, you’ll want to hone it down eventually. For example, don’t just target the medical field; target plastic surgeons, Urgent Care centers, Medical Insurance processing businesses. Instead of going after the legal market, gear your services toward real estate lawyers or Bankruptcy lawyers. Start at the roots and work your way up the tree.

Consider the Market’s Pay Power.

Not all industries are positioned to pay well for your services. Take healthcare, for example. Overall. healthcare can be a very lucrative industry. Some areas within healthcare have better cash flow than others, so make sure you start in the right area. Do your research and make sure you’re focusing on financially healthy verticals.

Once you’ve chosen a vertical, it’s time to start putting in the work needed to position yourself as an expert. A great way to learn more about making your company the best it can be is by attending our Virtual Academy. Streaming starts on February 24 at 7:30 AM Pacific time. We will cover everything MSPs need to know to drive success and increase your MRR. Don’t wait! Sign up today!