If you’ve been in the trenches of running an MSP business lately, you already know: this is not the time to coast. Between increased competition, rising customer churn and aggressive M&A activity, the pressure is on. That’s why I want to walk you through the three most important shifts you need to make, starting now, to protect your business and fuel new growth.
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1. Preserve And Develop Your Best Clients
You might think you know where your money is coming from… but do you really?
If you serve multiple markets, service lines or industries, it’s critical to evaluate profitability at the customer and division level. Every client and every offering should be held to the light. If it’s not profitable or it’s draining resources without clear returns, you simply cannot afford to keep it.
On top of that, your best clients are under siege. Other MSPs, including those backed by private equity, wake up every day plotting how to win your customers. And they’re armed with aggressive sales and marketing playbooks.
So ask yourself:
- Are you regularly communicating with your most valuable clients?
- Are you showing up with fresh value?
- Are you solidifying relationships beyond just the day-to-day service?
If you’re not focused on retention, someone else is…and you might not even see the poaching until it’s too late.
2. Be Prepared To Lose Customers…And Act Accordingly
Even if you deliver top-tier service, clients will churn. M&A is surging across the MSP industry. When a customer gets acquired, especially by a firm with internal IT or existing provider relationships, your contract is on the chopping block.
And let’s be real: sometimes clients leave for no fault of your own. They’re under financial pressure, and a cheaper option starts to look attractive, even if it costs them more in the long run.
The key is to avoid being caught off guard.
Build your pipeline now. Not when you’re handed a 90-day cancellation notice and scrambling to make payroll. Waiting until you’re in crisis mode means you’re starting from zero, and sales cycles in this space are rarely quick.
3. Level Up Your Prospecting…Aim Higher
If you’re going to spend time and money acquiring new clients, target those who will actually pay…and stay.
Now is not the time to chase small, high-maintenance, low-margin businesses. They’re often price-sensitive, unwilling to invest in IT and come with noisy helpdesk tickets and poor payment habits.
Instead, focus your energy on:
- Mid-sized businesses with IT budgets and infrastructure needs
- Organizations in regulated industries where IT is mission-critical
- Verticals where digital transformation is actively happening
Think of it like this: Don’t go into the woods looking for rabbits. Hunt elk. If you’re going to do the work, do it where the payoff is worth it.
Final Thoughts
This isn’t about doom and gloom. It’s about clarity. The MSPs that focus on preserving their best clients, preparing for inevitable churn and strategically prospecting higher-value accounts will come out ahead.
