Unlocking business success: Collaborative strategies MSPs can harness for SMBs amidst rising cyber threats

July 15, 2024
Taking on the role of advisors to SMBs allows MSPs to build a strong foundation for success.

Organizations across the board have seen an unprecedented rise in cybercrime in recent years. Now more than ever, small or medium-sized businesses (SMBs) are at the forefront of these attacks. The FBI estimates that cybercrimes against small businesses can reach up to $2.4 billion, and troublingly, 88% of small business owners surveyed by the U.S. Small Business Administration (SBA) feel vulnerable to a cyberattack.

MSPs need to capitalize on this opportunity by educating SMBs on the proactive steps they can take to remain protected in this ever-evolving threat landscape. Even simple implementations, such as rotating passwords and reviewing access credentials and operating procedures, can mean the difference between remaining secure and being the target of the next cyberattack.

Opening up these conversations is not only about security but also about understanding business priorities and processes. MSPs understand the key business problems of SMBs and can educate them on what exactly is possible with technology. After all, technology can be used to drive quantifiable changes that solve real business problems while also allowing MSPs to keep SMBs secure in the process.

Creating a roadmap that both sides can build trust upon and execute against is what will drive digitization and, by extension, overall increase productivity, revenue, and profitability.

Navigating widespread challenges

One of the biggest issues that accompanies cyber security is ensuring SMBs understand the required investments needed to protect themselves. This is particularly important in the field of cyber insurance, where costs have risen by 70% since 2022, and as few as 14% of SMBs have coverage.

The subject of cost has traditionally been a significant headache for MSPs, who have historically had a more difficult time articulating the value of their services and defending their costs from SMBs. Higher inflation and a drive towards profitability leads SMBs to focus on reducing costs, which could impact technology services and security.

Since MSPs and subject matter specialists are already technology experts, there’s an opportunity for them to more effectively explain technology using a vocabulary that resonates with SMBs by defining the outcomes of using the technology to improve their productivity, efficiency, and profitability.

It’s important to recognize that technology exists to assist businesses in solving problems, and SMBs are unable to do this on their own, given their limited resources. Therefore, the role of MSPs is to assist SMBs by allowing them to figure out exactly what they need in their technology stack and help them scale from that point on.

From investment to impact: strategies for implementing the correct tech infrastructure

The democratization of technology with the breakthrough of solutions in cloud, AI, and cybersecurity offer a chance to reset this paradigm and drive digitization. Technology is becoming an increasingly important topic in the boardroom, which provides another opportunity for MSPs to increase their sphere of influence. One example is the explosive growth of ChatGPT. While not necessarily a new technology, it resonates well with users because they realize the value it adds to their everyday lives.

Using these new technologies allows SMBs to automate the certification and accuracy of compliance, which will only increase as the world becomes more digital. The National Institute of Standards and Technology (NIST), Cyber Essentials and Essential Eight remain separate from cyber insurance, showcasing exactly how this is likely to increase in the years to come. More importantly, this means it will become an even bigger barrier to winning and protecting business at the required margin. Leveraging specific tools to reduce these activities frees up more time for MSPs to be able to demonstrate their value.

In short, investing in the correct technology infrastructure will scale with the company as they continue growing. This way, MSPs are not only addressing their technology needs at the current size but also advising on how to generate ROI over time. Part of investing in this technology also means using the technology to address talent shortages, upskill current employees, and more. MSPs need to provide strategic guidance on the technology needed for SMBs. In return, remaining secure provides them with the foundation needed to align their technology investment to broader business and growth goals without disruption. 

A journey towards holistic business advisory

As business is growing, MSPs need to be able to work more effectively with SMBs. This means transitioning from the traditional technology support role to a holistic business advisor.

MSPs need to prioritize moving from the server room to the boardroom through technological explanations that resonate with SMB audiences.

MSPs can do this by engaging with SMBs to identify their top security problems by asking them open-ended questions to find pain points. Only once this has been established can they produce the solutions that clearly address their ongoing concerns. Additionally, for MSPs to be considered technology advisors, they need to understand the business problems that an SMB is facing and provide effective solutions that deliver tangible results in a short time. Another example moves beyond reducing costs and toward overall business transformation, mainly increasing the amount of compliance required to win and maintain business.

As opposed to MSPs serving solely as general technology support, taking on the role of advisors to SMBs allows MSPs to build a strong foundation for success. MSPs must take the time and effort with SMBs to understand their key business problems and outline what can be possible using technology to drive and address business problems. 

It’s time to focus on how these strategies can improve the MSPs’ maturity in driving more leads, better margins, and more value in order for the MSP to grow profitability. When MSPs create a plan and take on this strategic role for SMBs, they are capitalizing on a real opportunity to unlock business success.

About the Author

Ciaran Chu

Ciaran Chu is the General Manager of ConnectWise ScreenConnect, a leading provider of business automation software for technology service providers. ConnectWise is a Thoma Bravo portfolio company and has more than 3,000 employees across 16 locations globally. With over 15 years of experience, Ciaran is a technical, product, and market expert in payments, fintech, and banking. He has a strong track record of value creation in global businesses across payments, software, and cloud industries in both private equity and publicly listed companies. Additionally, Ciaran launched a new security product with the fastest launch and growth trajectory in the history of the company. 

Ciaran’s main priorities focus on relationship building and management across customers, stakeholders, and industry to create buy-in and ensure results. He aims to deliver tangible transformation for products and organizations, developing programs and teams that drive growth on a global scale with strategy localization. Overall, Ciaran’s main areas of expertise include operations and product management, P&L management, business strategy, enterprise software/SaaS, payments, cloud, digital transformation, partnerships/ecosystems, and innovation.