Managed Service Provider Business Plan
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Executive Summary
Business Overview
Guardian Managed Solutions is a startup managed service provider located in Boston, Massachusetts. The company is founded by Pax Houghton, who has experience in comprehensive IT solutions, along with the expertise of business acumen and team management. Pax Houghton has determined he can confidently start and effectively grow Guardian Managed Solutions company to be relevant to the IT industry and highly-profitable. He believes his experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of IT solutions and practices will provide everything needed for long-term growth and profitability.
Guardian Managed Solutions will provide a comprehensive array of services for a wide variety of clients. Guardian Managed Solutions will be the one-stop solution for all IT needs, providing services and products to each client while supporting the strategic goals of the company. Guardian Managed Solutions will be the ultimate choice in Boston for clients to ensure that every need of the customer is fully and completely met.
Product Offering
The following are the services that Guardian Managed Solutions will provide:
- Comprehensive IT services for businesses of all size
- Client support and empowerment to reach solutions
- Proactive, secure, and cost-effective technology solutions
- Solutions that enable clients to focus on their core business objectives
- Network infrastructure design and management
- Cybersecurity solutions and monitoring
- Cloud services and migration
- Data backup and disaster recovery
- IT consulting and strategic planning
- Day to day project and client management
Customer Focus
Guardian Managed Solutions will target all businesses who require IT support and infrastructure. Guardian Management Solutions will also target companies that need design and installation of IT structures. Guardian Management Solutions will target clients who require large service contract packages and high-level IT protection behaviors for their infrastructure.
Management Team
Guardian Managed Solutions will be owned and operated by Vijay Sinek. He recruited his former associate, Jay Hawkins, from their former place of employment to be the Director of Operations for Guardian Managed Solutions.
Vijay Sinek graduated from Cambridge University, U.K. with a bachelor’s degree in technology solution-finding. He earned a full scholarship to attend Cambridge University and completed his degree within three years of enrollment. Vijay is a Upcoming Entrepreneur, as highlighted in the Young Entrepreneur magazine and has been elected to the Young Americans to Watch roll.
Vijay Sinek has been a professional in the IT solutions sector for over ten years. As such, he has extensive knowledge of current and new systems that are being introduced into large and small businesses across the globe. Former clients have already committed to follow Vijay to his new enterprise and are eagerly awaiting the opening of the company.
Jay Hawkins, a former associate in Vijay’s prior business, will be the managing director in Guardian Managed Solutions and will oversee staff positions that work directly with IT systems. He graduated from Brown University with a bachelor’s degree in International Business.
Tabby Townsend is the office manager for Guardian Managed Solutions. She has been a professional office manager for over ten years and has worked with Vijay in his prior position. Her call to the industry began when she experienced a security breach on her own computer twenty years ago.
Success Factors
Guardian Managed Solutions will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team at Guardian Managed Solutions
- Comprehensive menu of services encompassing a total package of solutions
- Managed IT support and helpdesk services
- Network infrastructure design and management
- Cybersecurity solutions and monitoring
- Cloud services and migration
- Data backup and disaster recovery
- IT consulting and strategic planning
- Guardian Managed Solutions offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Download the Managed Service Provider business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Guardian Managed Solutions is seeking $200,000 in debt financing to launch Guardian Managed Solutions. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for Guardian Managed Solutions.
Company Overview
Who is Guardian Managed Solutions?
Guardian Managed Solutions is a newly established, full-service IT solutions provider in Boston, Massachusetts. Guardian Managed Solutions will be the most reliable, cost-effective, and efficient choice for all businesses in Boston and the surrounding communities. Guardian Managed Solutions will provide a comprehensive menu of IT solutions and services for any company to utilize. Their full-service approach includes a comprehensive set of IT support.
Guardian Managed Solutions will be able to manage multiple large, medium and small companies. The team of professionals are highly qualified and experienced in IT services and the attention and care required to build effective systems. Guardian Managed Solutions removes all headaches and issues of the IT sector and ensures all issues are taken care of expeditiously while delivering the best customer service.
Guardian Managed Solutions History
Guardian Managed Solutions is owned and operated by Vijay Sinek, a former graduate of Cambridge University, U.K. Vijay has been experienced in the IT solutions sector for over ten years and has extensive knowledge of current and new systems. His expertise includes large and small systems for a wide variety of businesses. He has gained the trust and commitment of several businesses to contract with the new company when it opens based on his past expertise and commitment to managed services at the highest level.
Since incorporation, Guardian Managed Solutions has achieved the following milestones:
- Registered Guardian Managed Solutions, LLC to transact business in the state of Massachusetts.
- Has a contract in place for a 10,000 square foot office at one of the midtown buildings
- Reached out to numerous contacts to include Guardian Managed Solutions.
- Began recruiting a staff of three and office personnel to work at Guardian Managed Solutions.
Guardian Managed Solutions Services
The following will be the services Guardian Managed Solutions will provide:
- Comprehensive menu of services encompassing a total package of solutions
- Managed IT support and helpdesk services
- Network infrastructure design and management
- Cybersecurity solutions and monitoring
- Cloud services and migration
- Data backup and disaster recovery
- IT consulting and strategic planning
- Day to day client management
Industry Analysis
The managed service provider industry is expected to grow over the next five years to over $394 billion.
The growth will be driven by the economic demand that is becoming more and more reliant on IT infrastructure to keep their operations up and running. The growth will also be fueled by software and technology-driven instrumentation that will offer components to service not yet known in the industry. The growth may be driven by larger and higher demand, depending on the efficacy of current systems and the need for change within a decade.
Costs will likely be reduced as systems become more affordable and accessible. IT systems will be a standard feature in small businesses by the end of 2025 and will require little upkeep; this will lower the costs and apply better solutions across the board. Costs will also likely be reduced by a steady stream of young solution providers eager to capitalize on the IT industry by introducing new concepts and commercialization methods.
Download the Managed Service Provider business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Guardian Managed Solutions will target clients in Boston, Massachusetts. Guardian Managed Solutions will target all businesses who require IT support and infrastructure. Guardian Management Solutions will also target companies that need design and installation of IT structures. Guardian Management Solutions will target clients who require large service contract packages and high-level IT protection behaviors for their infrastructure.
The precise demographics for Guardian Managed Solutions are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Guardian Managed Solutions will primarily target the following customer profiles:
- Companies within Boston, Massachusetts
- Businesses who require IT support
- Companies who require IT infrastructure rebuilds
- Companies that need design and installation of IT structures
- Clients who require large service contract packages
- Clients who require high-level IT protection behaviors for their infrastructure
Competitive Analysis
Direct and Indirect Competitors
Guardian Managed Solutions will face competition from other companies with similar business profiles. A description of each competitor company is below.
Tech Solutions & Service
Started by Terri Tracson, Tech Solutions & Service is focused on small enterprises with complex IT needs. This might include a medical device company heavily invested in 3D printing, a security company hosting high-net worth individual securities, or a middle-range growth company requiring specific sets of IT solutions for military-grade needs.
Terri Tracson, a graduate of University of California, Los Angeles, started Tech Solutions & Service after being employed in the industry for ten years. She found that this industry had gaps in service and gaps in solutions to provide the absolute best IT possible. With that, she built an extensive list of clients and opened her own business. Tech Solutions & Service has one focus: providing secure and cost-effective technology solutions that enable all businesses to focus on their core business objectives.
Essential Tech Design
Essential Tech Design was founded in 2022 by Jess and Troy Halston. The two brothers attended Brown University and determined at the same time that the degree they sought was in IT system design. After graduation, the brothers set up Essential Tech Design in silent partnership with their father, Jackson Halston. The focus for Essential Tech Design is one of detailed and customized technology design for businesses with little to no housing space for complex systems. Essential Tech Design offers full package solutions that include complex housing for security systems and small systems for organizations that require specific industrial designs and security protocols alongside.
Healthcare IT Solutions
Healthcare IT Solutions was started in 2020 by Norton Small, a graduate of Boston University in Massachusetts. He holds a master’s degree in IT service and solutions and his company, Healthcare IT Solutions, is designed to meet the needs of clinicians and hospital staff throughout the US. The company owns proprietary IT systems that address every privacy and practical need within healthcare systems and offers a full setup and service package for new clients who buy into long-term contracts.
Healthcare IT Solutions has built systems for over one hundred companies and is known for the creativity of complex solutions found within healthcare management systems. The owner, Norton Small, is known for his interest in cutting edge technology for tomorrow’s IT solutions and invests heavily in startups and other ventures that support new technology and off-the-grid testing processes.
Download the Managed Service Provider business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Guardian Managed Solutions will be able to offer the following advantages over their competition:
- Comprehensive menu of services encompassing a total package of solutions
- Managed IT support and helpdesk services
- Network infrastructure design and management
- Cybersecurity solutions and monitoring
- Cloud services and migration
- Data backup and disaster recovery
- IT consulting and strategic planning
- Day to day client management
Marketing Plan
Brand & Value Proposition
Guardian Managed Solutions will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide a comprehensive set of services and solutions.
- Data backup and disaster recovery services for the US government.
- Unbeatable pricing for clients; they will offer the lowest pricing in the city.
Promotions Strategy
The promotions strategy for Guardian Managed Solutions is as follows:
Word of Mouth/Referrals
Guardian Managed Solutions has built up an extensive list of contacts over the years by providing exceptional service and expertise to former clients. The contacts and clients will follow the company to their new destination to help spread the word of Guardian Managed Solutions.
Professional Associations and Networking
Vijay Sinek will attend all networking associations and trade events within industry sectors. He will also work toward becoming an officer or leading member of each group to grow the recognition of the company he owns.
Website/SEO Marketing
Guardian Managed Solutions will fully utilize their website and engage in SEO marketing to targeted client groups. The website will be well organized, informative, and list all the services that Guardian Managed Solutions provides. The website will also list their contact information and list their past and present IT solutions. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “IT solutions company” or “IT solutions near me,” Guardian Managed Solutions will be listed at the top of the search results.
Pricing
The pricing of Guardian Managed Solutions will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Guardian Managed Solutions.
Operation Functions:
- Vijay Sinek will be the owner and president of the company. He will oversee all staff and manage client relations. Vijay has spent the past year recruiting the following staff:
- Jay Hawkins, a former associate in Vijay’s prior business, will be the managing director in Guardian Managed Solutions. He will oversee staff positions that work directly with IT systems.
- Tabby Townsend will be the office manager who will direct the office administration, client files, and accounts payable.
Download the Managed Service Provider business plan template (including a customizable financial model) to your computer here <–
Milestones:
Guardian Managed Solutions will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel and staff employment contracts for the Guardian Managed Solutions
- 6/1/202X – Finalize contracts for Guardian Managed Solutions clients
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into Guardian Managed Solutions office
- 7/1/202X – Guardian Managed Solutions opens its doors for business
Management Team
Guardian Managed Solutions will be owned and operated by Vijay Sinek. He recruited his former associate, Jay Hawkins, from their former place of employment to be the Director of Operations for Guardian Managed Solutions.
Vijay Sinek graduated from Cambridge University, U.K. with a bachelor’s degree in technology solution-finding. He earned a full scholarship to attend Cambridge University and completed his degree within three years of enrollment. Vijay is a Upcoming Entrepreneur, as highlighted in the Young Entrepreneur magazine and has been elected to the Young Americans to Watch roll.
Vijay Sinek has been a professional in the IT solutions sector for over ten years. As such, he has extensive knowledge of current and new systems that are being introduced into large and small businesses across the globe. Former clients have already committed to follow Vijay to his new enterprise and are eagerly awaiting the opening of the company.
Jay Hawkins, a former associate in Vijay’s prior business, will be the managing director in Guardian Managed Solutions and will oversee staff positions that work directly with IT systems. He graduated from Brown University with a bachelor’s degree in International Business.
Tabby Townsend is the office manager for Guardian Managed Solutions. She has been a professional office manager for over ten years and has worked with Vijay in his prior position. Her call to the industry began when she experienced a security breach on her own computer twenty years ago.
Financial Plan
Key Revenue & Costs
The revenue drivers for Guardian Managed Solutions are the fees they will charge to clients for their services.
The cost drivers will be the overhead costs required in order to staff Guardian Managed Solutions. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
Guardian Managed Solutions is seeking $200,000 in debt financing to launch Guardian Managed Solutions. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Managed Service Provider business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of clients Per Month: 20
- Average XX per Month: $85,000
- Office Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Managed Service Provider Business Plan FAQs
What Is a Managed Service Provider Business Plan?
A managed service provider business plan is a plan to start and/or grow your managed service provider business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Managed Service Provider business plan using our Managed Service Provider Business Plan Template here.
What are the Main Types of Managed Service Provider Businesses?
There are a number of different kinds of managed service provider businesses, some examples include: Lower-level Managed Service Provider, Mid-level Managed Service Provider, and High-level Managed Service Provider.
How Do You Get Funding for Your Managed Service Provider Business Plan?
Managed Service Provider businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Managed Service Provider Business?
Starting a managed service provider business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Managed Service Provider Business Plan - The first step in starting a business is to create a detailed managed service provider business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your managed service provider business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your managed service provider business is in compliance with local laws.
3. Register Your Managed Service Provider Business - Once you have chosen a legal structure, the next step is to register your managed service provider business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your managed service provider business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Managed Service Provider Equipment & Supplies - In order to start your managed service provider business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your managed service provider business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.