Small Business IT – Is the One-man Band Approach music to Your Ears?

Clarinets have a beautiful sound and range, but when you listen to a clarinet play by itself for three hours, you realize that there’s a reason why they’re usually just one part of an entire orchestra. Your business may find itself in a similar situation with your IT provider. Unless you have the most basic of IT needs, using a one-person operation won’t give you the harmony your company needs. Today, we’ll discuss what to look out for and why you may want to explore other options altogether.

The “Tech Wiz”

If you need help with electronics, the rule a lot of people use is to find the youngest person in the room to help you. That may work well with personal cellphones or laptops, but when it comes to your business, you need to be more judicious.

This is especially true because most people who have graduated from high school within the past twenty years will have computer skills. But having learned a few tricks in 10th-grade computer lab does not an IT professional make. Using or hiring someone based on being young also has another drawback: business IT needs are different from “pop tech.” Even someone qualified enough to work as an Apple Genius may not know their way around networking, servers or cybersecurity.

I Know a Guy”

In a similar vein to the last section, it seems like everyone knows someone who knows everything about technology. When taking recommendations from a trusted friend or colleague for your company’s IT needs, make sure the person has actual qualifications. Remember that everyone’s mother is impressed when the WIFI is miraculously fixed, even though they just unplugged it and plugged it back in again. Also, the reason for an enthusiastic recommendation might have ulterior motives — such as getting an unemployed brother-in-law off his back.

IT Department

This is perhaps the most obvious solution to having something better than a one-person operation, and for good reason. For starters, you’re working with a team that is dedicated to your company’s IT needs and are available if any problems come up (and they will). Unfortunately, this option comes with its own downsides.

For instance, now you have to worry about new personnel and management responsibilities. In addition, there’s very little flexibility if you’re trying to keep your costs at a minimum. For instance, what If your needs are heavy at times and then slow at others? You can’t keep hiring then laying off employees — you have to keep a fully-staffed department at all times, whether or not that makes financial sense.

Online Experts

Some people will try anything when their computer isn’t working, and searching for help online is usually a desperate act. The problem is that anyone can say they can repair a computer, install WIFI, or connect your network. But the truth is that you won’t know for sure until you hire them. By then it may be too late!

I’m not saying that there are no well-trained computer experts who advertise their services online. I’m just saying that you need to be careful when you’re hiring someone who can make or break your business IT on the same day you need help. Do your research. Use your best judgment. And, most of all, when you find a good person who does a great job, make sure to keep their contact info!

The Online Computer Repair School Grad

This may be your most dangerous choice. Not only will a recent grad have a head full of non-relevant information, but they will be super eager to show you everything they’ve just learned. Everyone has to start somewhere, but it takes time to get to know the endless issues, set-ups, and complications that small businesses face every day. Give a new grad a chance to learn if you can pair them with a mentor, but be careful not to let them loose too early.

MSPs

Managed Service Providers give you an option that ends up being the best of both worlds: the professionalism of a dedicated IT department with the freedom that comes from hiring a single contractor. You hire the company, not individuals, so there are no HR issues to worry about.

MSPs typically offer comprehensive Service Agreements where, once everything is set up, you pay a monthly fee, (usually less than the cost of one full-time IT person), and they’ll come in on an as-needed basis to resolve any issues that may arise. Plus, they’ll often monitor your site around the clock. That’s something most small to medium businesses cannot afford.

Yet another benefit is understanding that MSPs are business technology experts and focus on educating themselves on the latest, ever-changing technology landscape. When you have an MSP in place, you can take IT off your plate and focus on your area of expertise, and they can focus on theirs. In that way, you create a partnership where everyone is focused on your company’s success.

A one-man band may be fine for a coffeeshop concert, but it won’t sell out stadiums. If you truly want your business to grow, using an MSP can take you from the local underground to an international superstar!

Working Against Each Other: Break vs. Fix

When you were a kid, did you have a bicycle? If you did, I’m sure you can recall the thrill of zooming away from home, feeling the wind in your face as well as the freedom of personal mobility. But all that freedom ended when you got a flat tire. If you were handy, you repaired the innertube yourself. You popped off the tire, found the leak and patched it with glue and a piece of rubber. In no time you were back on the road, off to find your next adventure.

These days, you run a small business that’s doing pretty well. Everything runs smoothly, that is until a server crashes or your network goes down. You’re still following the patching approach with the technical issues around the office, trying to repair things as they happen. And, yes, that strategy may work for a while, but just like that innertube, your business won’t run if it has too many leaks.

SMBs have many reasons why they let the technical portion of their business exist on the Break/Fix model. But is it really the safest way to ensure that your business keeps running? Maybe, up to a certain point of growth. But there will come a time when the breaks are outnumbering the fixes and your budget gets out of control. So, what are the other options? Let’s explore five reasons why small businesses are timid about signing contracts for Managed IT Services, as well as offer a few solutions:

COST

Of course, cost is always the first reason. Some business owners find it difficult to see the logic behind paying a monthly fee whether they use the service or not when they can simply call on a Break/Fix provider when they need it. But they need to understand that they are using the service every day, through overnight software updates, constant SPAM filtering, and 24/7 system monitoring. And when something does break, it gets fixed much more quickly. Thanks to proactive monitoring, costs of downtime are drastically reduced.

TRUST

It’s scary to sign up with an entity you don’t know. Your business workstations and network are what keeps you in business, so it’s not easy to trust it to an unknown service provider. The best bet, of course, is to get recommendations from friends or other business owners. And it’s easy to do a quick Google or Yelp search and read some reviews before you make your decision.

BUDGET

I know you’re probably thinking that budget is the same thing as cost, and they do go hand-in-hand, but the difference is that a Budget is something you can plan for. Unexpected Costs are what you’re trying to avoid. With a Managed Services Provider, you can budget the cost month to month, year to year. You can factor it into each yearly budget which will help you plan for company growth and expansion. On the flip side, if you’re still operating under the Break/Fix model, you can really rack up some unexpected bills quickly. Bunch together too many of these surprises and your plans for growth may just go down the drain.

URGENCY

When something in your office stops working, you must get it fixed and up and running as quickly as possible. Downtime is money lost! If you don’t have a regular IT person you usually call, then you’re searching the internet for whatever Break/Fix provider is available. You’re hoping to get the best Tech you can, but in all reality, there is a very good chance you’ll get an average Tech, or maybe even someone new to the industry. Then there’s the cost issue again. In the heat of the moment, you’re willing to pay whatever it costs to get up and running. But a few weeks later, you receive a bill for much more than you thought you agreed to. Things like drive time, off-hour calls, and even parts can inflate that bill.

Needless to say, with a Managed Services Agreement all those things are covered. You’ll also get well-trained and certified Techs who are familiar with your business. And since they are contracted with you they will make repairing your business a priority.

CONTRACTS

Signing a long-term contract for Managed Services is very much like a leap of faith. You want to be sure that you’re making the best decision for your company, and long-term contracts may seem counterproductive to those plans. What happens if you’re unhappy with the service? If you’re in a HaaS (Hardware as a Service) agreement, who owns the equipment if you terminate the contract? These are scary thoughts. Your business might falter if you make the wrong decision.

But the good news is that you can negotiate all of these things, and more before you sign a contract. Make sure to ask if there is a way to get out of a contract if you’re not happy with the service. Ask about the ownership of any hardware or software you’re concerned about. And, most of all, don’t sign with anyone who you’re not sure about. Use your best business intuition to judge if the fit is right for you.

As a small business, it makes sense to start with a Break/Fix model of IT repairs and maintenance. But as you grow it makes good business sense to contract out services and get those worries off your plate. A good MSP will actually become your Business Partner and help you with Growth. Look at it as a Force Multiplier: your monthly investment gives you your time back, opening the doors for increased productivity and more potential growth. Let the MSP worry about risk mitigation and cybersecurity updates and you can go back to doing what you do best; running your business. Wouldn’t it have been nice to have someone fix those flats for you when you were a kid?

Don’t Get Nickel and Dimed to Death

As a business owner, you need to decide what level of IT support is right for you. Small businesses frequently operate under the “break-fix” model. Break-fix is exactly what it sounds like: you run your business normally until something breaks, then you pay an IT support company to fix it. Large corporations usually have an in-house IT department to take care of their computers, servers, networks and phones. Then’s there’s the middle ground. Managed Services offers a monthly service agreement to handle all of your IT support, but not all managed services is created equal – don’t get nickel and dimed.

Break-Fix Model

While the break-fix model appears the simplest out of the gate, it ends up costing more than you think. The ‘breaks’ cost you more because you’re stuck with unexpected hardware and software costs, and the ‘fixes’ cost you a lot more due to downtime, outages, and lost potential revenue. At some point, you’ll get tired of your CFO running into your office with a stack of bills from all of last month’s fixes.

In-House IT

You’ll then probably ask yourself, why don’t I hire a full-time IT person to take care of my needs? Well, that is certainly an option, but when you take a deep look into the ROI you’ll notice a huge gap between hiring one person vs. contracting with a fully staffed company. Let’s break down the costs.

We’ll keep the math simple and say that a full-time IT person will run around $50,000 a year, starting salary. That’s $24.50 an hour, Monday through Friday at 8 hours a day. The actual cost will be a whole lot more! Your new hire will need a desk, a computer, a laptop (for remote work), maybe a gas card or car if you have more than one office, a cellphone and high-speed internet access. And they’ll also cost you vacation time, sick time, holiday pay and probably a lot of overtime. At the end of the year, you’re probably close to paying out twice their base salary. And you’re still basically operating under the break-fix scenario because that individual is not available to do everything you need 24/7.

Managed Services

There are really two lists of services to consider when it comes to Managed Services.

Permission to Play Services

A good list includes the following permission to play services:

  • Remote Support
  • Remote Desktop Sharing Assistance
  • Onsite Support, as needed
  • Help Desk Phone Support
  • Office & Mobile Phone Support
  • Network Administration
  • BDR (Backup Disaster Recovery)
  • Software & Security Updates
  • SPAM control

Real Managed Services Providers Also Include

Good Managed Services providers go above and beyond this list to include:

Managed Services Costs

If you’ve looked at hiring a Managed Services Provider before, you may have experienced sticker shock when they quoted you the price of their monthly service agreement, especially if it included all of the above at a flat rate. However, if you examine the benefits of a monthly agreement you’ll see that it will work well with your business plans and help take your company to the next level without unexpected costs of break-fix or the added costs of hiring a staff person.

There’s A Problem in the Industry Today

However, there’s a problem in the IT support industry today. When offering Managed Services, some people say they’ll cover everything with a ‘flat rate.’ Then, they end up sending you a bill at the end of the month for drive time, after-hours service, or parts. They may have promised you a clear-cut agreement, but then nickel and dimed you to death with a pile of invoices. Doesn’t sound much different than a break-fix arrangement at that point does it? With Managed Services you should be able to budget for a set monthly rate. As you look for a Managed Services provider make sure you ask about the things that are not included in this ‘flat-rate,’ so that you know if you’re about to be nickel and dimed or if you’re working with a quality Managed Services provider.