By Carrie Dagenhard (Tech Writer).
Due to the recent turmoil in the economy and current events, a lot of IT professionals interested in starting their own IT & MSP businesses have felt reluctant to scratch their entrepreneurial itch.
Understandably, many would-be founders looked at the state of the world and opted to stick with the security of their full-time employment rather than take the plunge to entrepreneurship.
But time waits for no one, and many savvy tech pros are realizing that now is the best time to sever ties with traditional employment and forge their own path.
Let’s explore why now may be the best time to start your own IT & MSP business — and a few words of caution for anyone preparing to make the leap in the near future.
Demand For Tech Talent Is Surging
When tech organizations fail to find talented candidates to bring in-house, they begin looking outward. And with the talent shortage and “great resignation” expected to continue, IT freelancers, consultants, and third-party MSP businesses are well-poised to fill the gap. As a prospective tech entrepreneur, it’s a good idea to consider how you can use this to your advantage.
For example, suppose you’ve been considering launching your own MSP service. In that case, you might want to target businesses that are shorthanded in their IT department, including those who’ve had long-standing open positions for IT roles on job boards. If you’ve been developing a B2B technology app, think about how your idea may benefit organizations working with a smaller staff.
Nearly every prospective MSP client you serve is likely looking for a business like yours that can act as a partner in their success and give them close and careful attention.
The Economic Outlook is (Mostly) Good(ish)
The Conference Board has forecasted that they expect the US economy to grow by 3.5% year-over-year, which is above pre-pandemic trends, according to U.S. News & World Report. Goldman Sachs is even more optimistic, expecting a 3.8% expansion, and Bank of America predicts 4% growth.
Ideally, you want to start a business in a healthy economy, when businesses and consumers are a bit freer with their budgets, and you’re more likely to build a strong foundation. That said, many entrepreneurs have launched companies amidst recessions and still achieved success, so the takeaway is that if you see a need in the market, fulfilling it is more important in your startup's success than the overall state of the economy.
There’s No Such Thing as a Perfect Time To Start A Tech Business
Unfortunately, there’s no green light to let you know when you should move forward with your dream startup, because there will never be an ideal time to launch a new venture. Even in the most perfect and predictable economic times, challenges abound. There will always be unexpected obstacles you’ll have to overcome. Plus, nearly every tech entrepreneur makes mistakes at some point. As a business owner, it’s important you cultivate resilience and get comfortable with discomfort.
If you feel called to start your own IT & MSP business, delaying for another year or two may not put you in a better position. There’s no way of knowing for sure what lies ahead, so most entrepreneurs live by this mantra: The time is now.
Preparation is Always Essential to Success
Of course, no matter when you decide to start a tech business, it’s crucial you start down the path with as much preparation as possible. For some entrepreneurs, that means sticking with full-time employment while you build your business on the side.
While doing double-duty will be extremely demanding, having the security of a consistent paycheck and other benefits (like health insurance) can be a godsend during those turbulent first months. But, if you can’t work and start your business simultaneously, at least strive to amass a decent amount of savings before you jump ship.
Additionally, make sure you fully understand the market you’re entering and any known challenges in that space. And be sure to arm yourself with all the right tech, like reliable professional services automation, to ensure you’re ready to provide the best possible service to your MSP clients.
Becoming an entrepreneur isn’t for the faint of heart, no matter the year. But by taking the above points into consideration, you’ll be much closer to achieving success.