Want to start an IT Services company?

Inspired by a reddit comment, let's tackle the question "what should you do if you're new to the space?"
I’ve done two videos that are super popular - “If I were to start an MSP”, and “Don’t Start an MSP”. The first is about the type of business I would start now, and the second about the challenges of the market as they exist now, that did not exist when I first started.
If I was starting something today.. how would I disrupt my competitors? How would I disrupt and displace those established providers? Rather than gatekeeping… how could I stand before the gates and tell the invading army how to take them down?
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[@mustachesally4134]

I started an msp back in 2015. Been in IT for 15 years total. I started out very small. But I chose my clients that were a fit instead of just adding random environments that were not a fit for what I am offering as a service. You have to be a people person in order for organizations to have interest in you. I managed 6 very small businesses that had a small staff with basic needs. I found what worked and did not work with my customers. You learn client relations and you get to know the lingo of business process. You eventually find out that in this business, you need to know who your customer is and what they do in the market. You figure out how to maintain revolving doors Of a business you're managing and eventually you adapt to it and learn. Years later, these 6 clients grew and they needed better IT support to Support all the users and devices. They left, i learn, I repeat but prevent Mistakes of last encounter. I eventually hired the right folks and growth started to show. Those 6 clients came back to me and we are now a thriving managed IT with over 40 clients.

[@MSPRadio]

Congratulations on your success.

[@forrestbirnbaum434]

Do you have to go through vendors for all the products your customers need? Such as computers, routers, wiring, etc...?

[@MSPRadio]

@@forrestbirnbaum434 That’s up to you. You can alawys acquire products via the retail channel, or consider going through distribution and providing markup. There’s options and value in both.

[@hajimisato440]

I need an IT expert. Seriously need it.

[@sujathareddyp9444]

hearty congratulations. can you help how to start a IT company documents and can you give guidence .

[@TheYankiChannel]

Glad to see this video, 2 years into my IT Support business. 100% right. I'm young, digital native, used the old msp space to have something to be compared to, but created enough difference to not feel like one, making it harder to find a substitute.

[@MSPRadio]

Really glad to hear this resonates. What do you think that key difference you created is?

[@TheYankiChannel]

​@@MSPRadio This might impress you, but it's speed, approachability and creating correct expectations so that going one step further feels like a lot. One issue in Spain with MSPs they are seen as gatekeepers of the IT space, but they don't provide much value out of managing, they bill per ticket, per service, instead of billing by value. Answering a ticket for a pw check seems to be more important than establishing a self-service pw reset system. As stupid as it sounds.

[@TheYankiChannel]

@MSPRadio I just fused msp+it department and I got a solid outsourcing model. Where I am the Department Lead, so I can innovate and push clients IT as much as budget allows.

[@Du63e]

I’m learning this for a game does it really make good money because in the game it offers up to 2 million dollars

[@MSPRadio]

A solid approach. Well done!

[@chia8u]

Dave I love your thought process. When describing the new tech biz I was totally in line with it, saying that’s me to every one. The traditional way of MSP needs to be changed to be relevant or get left behind.

[@mhlengikunene7893]

So glad I ran into this video today! It certainly showed me a game-changing angle I wasn't seeing 🙌🏽🙌🏽 so thank you! 🎉

[@MSPRadio]

Glad it was helpful!

[@kevpwhite]

Great video. I am coming from the Enterprise world. I also have been working on implementing power automate and governance for our organization. This product can solve so many problems in SMB. I been really thinking about leaving the corporate world to start my own thing and your videos have inspired me to try something different. I think it's time.

[@MSPRadio]

Glad it helps. I have a piece called "What I would do if I was starting an MSP today" which also might help. kzbin.info/www/bejne/gHOzoYKVrtqjpLM

[@dabneyoffermein595]

Let us know what you did. Did you start an LLC or Sole prop.?

[@The_Real_Meme_Lord_]

Im glad I watched this, Ive been thinking about starting a MSP recently but had a weird feeling stuck in the back of my mind that wasn't what I really was looking for. Im 27 and have had a smart phone since I was in middle school. I feel that's given me a serious leg up when is comes to mobile device support. I never really thought about retiring the old titles and creating new one to meet modern day business need on mobile. Maybe focusing on just mobile would be something that I could do to really differentiate myself in the market. Thank you for provoking that thought!

[@MSPRadio]

Glad to help. Find your niche, for sure - how you want to differentiate, and what services you can do uniquely in the market.

[@ikafridi1811979]

Very good assessment and thought provoking discussion

[@MSPRadio]

Glad you found it valuable.

[@LeelosAdventure]

Also I am in grad school for computer science and I am doing door to door sales to learn sales. What type of sales would be best to learn for running an IT company?

[@AnthonyMorrelle]

1) cloud failures happen a lot 2) privacy is nonexistent in the cloud I think there is going to be a swing back to on-prem or at least hybrid

[@MSPRadio]

Thanks for the response. I'd offer that failures happen to all kinds of systems, and matching customers to solutions remains the name of the game. "On prem failures happen a lot too".... and thus, compare solution types. And as for privacy, replace "in the cloud" with "when connected to the internet", because on prem suffers the same problem when connected to the internet. You are correct in that some businesses are using moer hybrid systems. The key is that hybrid can be more expensive too, as one has to replicate data or sync between two systems. Thanks for the insight -- those that help customers navigate these questions is the value.

[@notsure7874]

Cloud can be far more costly than on prem for many things. They don't make money by leasing you resources on hardware for less than it costs to operate. They make money by either adding value in some way, or by fractionalizing costs. I can't recommend a 5 person company manage an on prem mailserver, that's crazy talk. Get Exchange for $5 / user. But I also can't recommend that an agency with 40tb of ad creative being accessed by 20 dudes working on them use a cloud storage platform. All that data has to pass through their crappy internet connection that everyone is sharing - that 10g network with a NAS on it starts looking really good. As for privacy - that most certainly IS a concern, and the concerns are FAR greater than with on prem. You're one disgruntled employee away from all your data being posted on the darkweb. Not even YOUR employee - possibly some employee in Bangladesh, where you have no hope of any legal recourse. Google is listening to your Android phone 100% of the time. Cox Media said the quiet part out loud - but Google swept this under the rug, tried to lay the blame at Cox's feet, and basically disowned them - but they're still listening on your microphone 24/7. nypost.com/2024/09/03/business/marketing-firm-spies-on-you-through-your-phones-microphone-report/ Ring will give your videos to the police without your permission, without a subpoena, or court order, or warrant ... just because a local policeman asked for it. Of course since they got caught they have said they pinkie promise not to do it again (unless theres a really good reason, or they just feel like it): www.eff.org/deeplinks/2022/07/ring-reveals-they-give-videos-police-without-user-consent-or-warrant GM was selling your precise location, and driving behavior data without your consent. This, is after some in the industry tried to say that Right to Repair would give independent shops access to this data and your stalker could get your precise location ... as they themselves were selling your precise location and driving data to private entities. But again, they got caught and promise they won't do it again. www.ftc.gov/news-events/news/press-releases/2025/01/ftc-takes-action-against-general-motors-sharing-drivers-precise-location-driving-behavior-data

[@bradleyknight3497]

Your awesome sir, you are right its Cloud services or nothing!

[@itchyJaw-qn6ql]

Im just starting up right now I'd like to do network but not learned yet and love to. Right now I am offering computer repair, installation and cctv and running cables and basic networking

[@MSPRadio]

Rather than focus on new areas first, consider how to make what you are doing recurring to make it more predictable

[@jimalvarez5042]

oh nice! I really want to start doing that too. Need to look into what's needed for CCTVs and how to properly run cables. Are you perusing more companies or just individual users at home?

[@itchyJaw-qn6ql]

@jimalvarez5042 im doing both do you have discord or email we can share stuff

[@itchyJaw-qn6ql]

@@MSPRadio thank you for your response will take note of that

[@raycam7188]

I am thinking of looking into El Salvador - but from here. Until it keeps up . Would I market it the same way as I would here ?

[@MSPRadio]

That’s not a market I know at all - sorry I can’t advise.

[@anmolrana4923]

thank you for sharing your knowledge, helps folks a lot!

[@MSPRadio]

Glad it was helpful!

[@isaacjohnson4511]

As a cloud-first MSP this largely echoes my own feelings; however, RMM is also commoditized so it's pretty dirt cheap to have and it does presently fill in certain gaps to create great customer experiences, so I wouldn't say forego it per se, especially as you start to scale up, but you don't need to go with a particularly complex or expensive one. Conversely, if you were doing all Chromebooks/Android/iOS or something like that then, by all means, forego it.

[@MSPRadio]

Fair points. Mostly, many just over think the RMM. It's not that important in the grand scheme... certainly not for the space it occupies.

[@1999Jerod]

By cloud, do you mean AWS/Azure/Google cloud? And building a CRM inside of that? Or some how importing sales force into one of these clouds by using an API or something?

[@MSPRadio]

Broadly, I mean the use of SaaS software for most businesses. That should be the starting position, and as much as possible use off the shelf software.

[@bald_agent_smith]

Thank you sir! That's great insight and motivation.

[@MSPRadio]

You are very welcome!

[@loopbarroji1707]

You blew me away. I am in South Africa.

[@MSPRadio]

Glad you got value!

[@danielz2374]

Very constructive bro , what do you recommend me I'm a student with F1 vissa in USA and I wanna do some business as a part-time in IT

[@MSPRadio]

Try this video, and happy to answer more questions. MSP Experts Weigh in: Early Career Advice.. help desk or MSP? kzbin.info/www/bejne/jXnPnJ9jg8Z0gsk

[@toreceiveyou]

I love your video. I do own a startup in it services. Can you explain me more about it

[@MSPRadio]

How can I help? There's this video too that is helpful for you. kzbin.info/www/bejne/gHOzoYKVrtqjpLM

[@benlooy547]

I've watched your two most popular videos and now this one, looking to start an MSP similar to the model you have been suggesting. Can you point me towards any of your other content about starting a new MSP? Or would you suggest another good external resource?

[@MSPRadio]

I'd recommend taking a look at the piece I did on eCommerce (kzbin.info/www/bejne/qYKtlHSjm7KXjtk) as well. Everything of mine is here on the channel, or the podcast at businessof.tech/. There are a number of good resources out there. My friend Karl Palachuk has a number of resources at www.smallbizthoughts.com

[@surging3549]

Not sure if the support side of things is lagging in the US but every single MSP I know of has managed services for mobile and tablets, for the last 5+ years at least. If not intune somethjng like mosyle or jamf. You talk about the cloud but theres three perfectly viable solutions in on prem, hybrid and full cloud via AWS or Azure. That depends on the business, their current kit, warranty, their business goals etc. Its nowhere near as straightforward as you speak and theres lots to consider like SLAs, contracts, time management / support, theres also a huge investment personally on platforms to support businesses. What about disaster recover or business continuity options? Your video feels like it was made 15 years ago buddy! I've 30 years in technical myself, from education to small businesses to large corporations, from MSP to corporate IT, in management and project teams so I've been around the block!

[@MSPRadio]

First off, thanks for watching. This video is two years old, so market conditions do change over time. The basic premise of this video is if you were starting fresh today with no legacy and no customers, what would you do. Thus, I'd recommend someone start very simple -- so yes, the video is going to over simplify for cause, to focus on what the highest value first service would be. You've surrounded yourself with good peer MSPs, which is a good sign for your business. The broader market, as measured by survey data, indicates that not all providers are handling mobile and tablets. Good on you for having higher performing peers. I have an entire video called "Don't Start an MSP" which is a lot of what you highlight -- this is a hard business!

[@BryanK-y5y]

Excellent comment .

[@wcophd]

doing tech sence 89, thinking full stack development, now rethinking. Enjoy your perspective although I was doing that with Intuit, funny how I didn't think to do the same.

[@MSPRadio]

There is going to be a real need for those tho do development for small companies. Worth spending time there too.

[@TheBlueMahoe]

so do you mean helping people to move their data into the cloud and also use SaaS

[@MSPRadio]

Yes, there is still plenty of opportunity here, and then additional space to help customers utilize their systems effectively

[@harmonywatson5269]

Agree or disagree! I agree!! It’s about discussion and u read the comments great! I came looking for info bc a friend of mine was talking about IT business! I’m watching ur other vids now 😁 I would love future feedback so I’m just planting my seed meow for discussions 😸

[@MSPRadio]

I'm glad you found this valuable!

[@abdulbasitrajpoot2713]

How much should a new company charge per hour? to attract new small business customers. Can you please guide? What does the data says? I work for a company who charges like 320 dollars per hour. But I am not I f can charge that much as a new in business

[@MSPRadio]

To maintain profitability, your target should be 2.5X your staff salaries - in US tax parlance, your W2 employee costs. Anything below that is a money losing business.

[@maheepsingh1729]

Thank you sir !!

[@MSPRadio]

Most welcome!

[@sujathareddyp9444]

can you suggest me how to start up IT Company and dcouments can you guide me

[@alinadeem8947]

Server and Application support falls in same category?

[@MSPRadio]

In a typical SMB support scenario, you’re going to need to figure out both. Ideally, you’re doing zero server support, leveraging the cloud, so your emphasis is application support. As we go into 2024, it should be rare to non-existent to be deploying servers.

[@alinadeem8947]

​@MSPRadio thanks for your response. If I am planning to provide support for a critical Manufacturing application (I worked with application vendor in 5 years and known it inside out). Now want to reach out to clients directly and offer support. Would such business work. I need as much info as possible...pleaseeee

[@MSPRadio]

Focus on that as your offering, and partner for the other pieces.

[@ChrisBangsOfficial]

This is awesome.

[@LeelosAdventure]

I want to learn how to build an IT firm. But what do IT firms sell?

[@MSPRadio]

You will want to think about the products and services that potential customers need. My colleague Karl Palachuk offers a lot of information that I’ll share here- smallbizthoughts.com/ Of course, I have a number of videos here on the channel about what this solution is. You might consider starting with my "What is a Managed Services Provider" video too to get the history and learn more.

[@LeelosAdventure]

@@MSPRadio thank you very much for the help. I greatly appreciate it

[@lamees876]

How can I get a consultation 1 to 1 with you Sir.

[@MSPRadio]

Happy to help. calendly.com/dave-sobel/consulting-call

[@s3renity274]

How do you get customers?

[@MSPRadio]

It’s a question of where you are in your process - early, you will have to find them personally, often through networking, and as your business grows,you will add marketing efforts to drive in leads, and a focused sales process.

[@sitrakaforler8696]

Yes but ... I am french and dam taxes are kind of high haah HOWEVER letzzzz go

[@angrymanhatestan]

Best cardiff striker ever

[@Soya8827]

Hi sir. Will ai replace web developers like me?

[@MSPRadio]

My expectation is that developers won’t be replaced by AI, and instead by developers who understand AI and use AI.

[@brianatrujillo4897]

ITPros Management will get you right!💯 beat company for IT support !

[@TanvirAhmedRiyad]

Bro i am from Bangladesh ❤❤

[@ChrisBangsOfficial]

You look great.

[@TheBlueMahoe]

Help me please

[@JenniferABlanc]

Smart! No pun intended 😅

[@MSPRadio]

Well, I do try! Thanks!

[@TanvirAhmedRiyad]

Anyone from bangladesh? ❤❤

[@subhadeepnath5748]

Only scammers

[@chaseflores2145]

There was zero useful information in this video 😂

[@MSPRadio]

What were you looking for that you didn’t find?

[@hammoudihoussam58]

A kid talking don't even comment back ..

[@prevaloir5362]

WRONG.

[@MSPRadio]

I'm always glad someone has a takeaway from my work, even if they completely disagree with it -- and decide I'm entirely wrong and do something else. May you go forth and have an incredibly successful business, and I want to hear all about it.