5. Assess Local Market

How to identify and research your ideal MSP clients in your local market. Learn which businesses to target, how to use OSINT techniques to find prospects, and how to assess the competitive landscape.
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  3 minute read  

You are not knocking on random doors. First, there are many types of businesses that are more likely to need and pay for your services. Second, within those types of businesses, some will be a better fit than others. We can do quite a bit of this research before venturing out to find clients. Who is most likely to need and pay for your services?

Your target customers

Focus on small businesses with 1-20 employees in industries that rely on technology but may not have dedicated IT staff. Examples include:

  • Attorneys
  • Accountants
  • Dentists
  • Real estate offices
  • Home services (HVAC, electricians, plumbers)
  • Boutiques
  • Health practices (small, not major clinics)
  • Auto repair shops
  • Small manufacturers
  • Independent retail

Who is probably not a good fit?

  • Restaurants (high turnover, low margins)
  • Cafes and coffee shops (similar issues as restaurants)
  • Large enterprises (have their own IT)
  • Non-profits (often have tight budgets, but exceptions exist and/or you could offer discounts)
  • Franchises and national chains (often have corporate IT policies)

OSINT Selection

OK, so we know the types of businesses to target, but how do we find them? You can use Open Source Intelligence (OSINT) techniques to research local businesses online. Look for:

  • Business websites
  • Social media profiles
  • Online reviews and ratings

Use tools like:

  • Google Maps
  • Yelp
  • Local business directories
  • Chamber of Commerce lists
  • Street View
  • Their websites (age, SSL, tech maturity)

If you really want to go crazy, OpenStreetMaps has a tool called Overpass Turbo that lets you query their database for specific types of businesses in your area.

Track this in:

  • Google Sheets
  • Notion
  • or ideally in your CRM

Rank prospects based on these criteria:

  1. Low IT maturity
  2. Regulated industry
  3. High uptime sensitivity
  4. Friendly owner profile

You only want “likely buyers.”

Competitive Analysis

You want to find areas where there is demand but not too much competition. Look for:

  • Other Managed Service Providers
  • Local IT service companies

Pricing Research

Look at what competitors are charging for similar services. This can give you a benchmark for your own pricing. You can often find this information on their websites or by calling and inquiring as a potential customer.

Consider reaching out to local business associations or networking groups to get insights into the local market and pricing norms. Also, the Chamber of Commerce may have resources or data on local business needs and trends.

Local Economic Factors

Consider the overall economic conditions in your area. Are businesses thriving or struggling? This can impact their willingness to invest in IT services. Adjust your pricing and service offerings accordingly.

For example, if there is a downturn in the local economy, then focus on the basics like break/fix support, making sure updates and backups are running - and that’s it. If the economy is booming, consider upgrading to a Unifi network or finally getting a Synology NAS and expanding the backups.

Summary

By thoroughly assessing your local market, you can identify the best opportunities for your MSP business. Focus on the right types of businesses, understand the competitive landscape, and tailor your services and pricing to meet local needs. This groundwork will set you up for success as you start reaching out to potential clients.