Have you ever pondered the question, "How do the top 1% succeed in this industry while the rest struggle?" All of us are curious about their advantages and secrets. 

80% of MSPs and IT Services companies, according to MSP Success Magazine, make less than $1 million in annual revenue. 

The fact that business owners are juggling many tasks is a major factor in this; rather than needing a go-to-market strategy, they require an A-Team. 

Many business owners strive to handle every aspect of their business, including acting as the CEO and managing sales and technical duties. Small and newly established firms are most affected by this. 

But to thrive, you don't have to be a master of all trades. By assigning responsibilities to others, you can invest in both you and your company. Let others and automation software handle the rest while you concentrate on what you do best. Work smarter, not harder now. 

There is, however, more to it.  

You must be aware of which business tactics will be successful and which you should avoid... 

1) Not billing you for your time 

MSPs frequently neglect to charge for their time and instead charge a flat rate for their IT and automation services. Because you undervalue your time and leave money on the table that could have gone directly into your pocket, this can be a bad mistake. 

Don't forget to bill them for the time you spend assisting them or resolving any issues! 

2) Lack of a pricing strategy 

To make sure you are paid what you are worth, you must have a pricing strategy. You must think about the value of each service and determine charges accordingly. Clients won't feel as like they are being taken advantage of if they are fully aware of what they are purchasing and why. 

Your pricing plan should consider: 

Your fixed expenditures include expenses that remain constant month to month, such as rent, utilities, salaries, etc. 

Variable expenses, such as production costs, hourly labor, commissions, etc., should be considered when pricing a service. 

Standard/Premium Pricing: If you provide services that are in high demand, think about charging a little more for them. This demonstrates your self-assurance in the worth of your offerings. Giving your customers a choice based on their budget by providing standard and premium services is another benefit. 

Most importantly, be sure that after accounting for your fixed and variable costs, your pricing provides a surplus of revenue. If you have clients in several locations, consider a pricing plan appropriate for the locale and sector. 

Make sure there is a recurring revenue component in your pricing strategy to boost client lifetime value over basic break-fix service. You will have more influence over how much each client pays you thanks to this. 

3) Failing to Provide Value-Added Services 

As an MSP, providing value-added services can significantly increase your income. These services go above and beyond what is typically offered as IT support, but they may offer clients additional benefits like improved security or higher productivity. 

Even if these services could be more expensive, customers will still be prepared to pay if it means their company will gain anything. When creating value-added services, such as intelligent documents or ticket processing, think creatively. 

4) Limiting Your Service Offering 

Another excellent strategy to boost your income as an MSP is to diversify your offering of services. Keep up with industry trends since new technologies are always being developed and think of adding services that are related to those trends, such as scalable cybersecurity monitoring systems or sales enablement services. 

A wonderful method to go beyond your core offerings is to cross-sell features that compliment your customers' services. This will allow you to upsell and enhance the overall customer experience. 

To ensure that their clients' financial data is always backed up and accessible from anywhere, anytime, an MSP collaborating with an accounting firm can provide cloud backup and storage services for those clients. The extraction of data from financial records such as tax returns, financial statements, and other financial papers is another alternative that can be presented. 

Your company will remain competitive and relevant in today's constantly evolving market climate by staying up to date with industry trends and figuring out how to use downloadable bots to implement them. 

5) Not putting money into your business and yourself 

If you want to earn more money as an MSP, you must invest in yourself. This doesn't only entail spending money on training and certifications, though those are also crucial. It also entails setting aside some time each week, month, or year to focus solely on eliminating time-consuming manual work from your schedule and learning new skills. Not only will this help you expand on your current skill set, but sharing what you learn will also position you as a thought leader in your local market, allowing you to charge higher fees from potential clients in the future. 

Making more money as an MSP doesn't have to be a pipe dream; it's quite doable if you make the right moves in the right direction. 

You can raise your income and your chances of breaking into the top 1% of earners by adhering to these five measures. Start implementing these business techniques right away, together with clever automation within your company, and see your profit margins increase.

Work 365 is an automated billing software and subscription billing platform for Microsoft partners to streamline recurring revenue.