@bigbear said in How to Grow from a One Man Operation to Two:
@scottalanmiller said in How to Grow from a One Man Operation to Two:
@bigbear said in How to Grow from a One Man Operation to Two:
A small "MSP" has the chances a rock band has of both sustainability let alone large-scale success.
Its got me thinking, and maybe a good topic for another thread, what is the "hot business" now that is accessible for a small startup. Something where customers are actually seeking out solutions the way small offices needed a server, email and network help in the late 90's and early 2000's?
If we only knew.
In the context of starting from scratch and ascertaining new accounts in 2017. Incumbent businesses with existing revenues and clients have a 20x advantage.
If your looking for "hot jobs"
SRE, Machine Learning, and general development are all doing quite well.
In infastructure NSX people are hard to find and pay decent (~200K+).
Operations people who know enough automation programming and scripting to do Devops (DevOps is about ops people becoming devleopers not the other way around).
On the topic of advantages of large shops vs. small it's pretty huge.
You are also competing against guys with DEEP skill benches. Not only can they bill more per hour, but they have guys who can do what you do in 1/4 (or less) the time.
New site deployed? I would quote the labor at flat fee 2 hours $400 knowing it would take the engineer maybe 15 minutes to copy paste an existing DMVPN config he had done.
Larger shops also get significantly better pricing on MSP tools (RMM, and PSA pricing models skew towards heavy discounts once you have 10,50,100 employees or thousands of sites being monitored). I've seen 80-90% off list for software.
Large shops have benefits that just can't get matched.
Going from a small employer who's health insurance was so bad it was cheaper out of pocket to a medium sized shop where it was all free was huge. There are guys with chronic conditions (Type 1 Diabetes, Cancer survivors) who historically couldn't work for a small business because of the out of pocket insurance costs.
Going from a medium to a larger shop can double your compensation. Even if you pay them the same in cash you are likely not to offer:
ESPP - Variable income between ~3K and 30K depending on how the stock is doing. Can pay employees at long-term capital gains with this to cut their tax bill in half.
RSUs - Variable income, that has special tax treatment if held. Can pay employees at long-term capital gains with this to cut their tax bill in half. It's a golden handcuff but the employee can leverage this into a larger signing bonus at their next hop.
Bonus - 5 figure performance bonuses and bonuses paid out more than once a year are nice.
401K with match, and low carry costs. Note the last one can be a legal liability if you screw up.
Education (Cover full costs of an Masters/MBA, any certification or training they want and send them to 1-2 conferences a year.
Expense/travel reimbursement policy - Small shops will balk at someone spending $30 on dinner. Large shops will not care about a $100 lunch. Small shops will force lowest cost fair rules on travel, and force discount carriers, and tickets. Larger shops will allow business class on long flights.
Equipment/other misc - Small shops will give you a 10-year-old compaq laptop. Larger shops will happily give you a $3K XPS or Macbook pro. Cell phone reimbursements and other fun things also add up. Small shops have to count pennies....