Knowledge is power, right?
I noticed in the first couple days of the Coronavirus outbreak that some of my MSP friends were asking the same questions. What’s going on? Are you working remotely to? Holy crap, the phones are ringing off the hook! And when will we go back to normal?
So, I put this survey out into the MSP world to get some answers. I posted on Facebook, r/msp, in the Evolve Peer Groups forum, Taylor Business Group, shared it with a bunch of local South Florida MSPs, and also through some MSP coaches I know. Here’s what I found:
- Most MSPs are experiencing a slight negative impact from this so far. 94% of participants reported 0-20% loss in revenue.
- However, 32% of participants expect 20-40% loss of revenue in 6-12 months. That’s a lot.
- Several respondents are having challenges procuring product and unusually high ticket volume. Many are also having clients put projects on hold, although there is an approximately 50/50 split between increase and decreased demand for new products and services.
- Prior to the outbreak, 33% of participants did not have an emergency business continuity plan.
- 4 companies reported being in severe crisis.
- Almost all the MSPs have implemented a work from home program, which nearly half are considering layoffs and furloughs. A number have also drawn on their line of credit, applied for a disaster loan, and postponed investment decisions.
- Nearly as many MSPs (35) are still doing on-site appointments as are those (33) who have indicated they are waiting 3-4 weeks.
- 46% of MSPs reported they have less than 10% of their team working from the office, and 24 reported their offices are entirely closed.
- 50% shared they have not had a single client as for a discount or terminated an agreement. However, 7 MSPs reported that more than 5 clients have asked for the same.
- The majority of the group (82%) are continuing sales and marketing efforts at this time
- Company morale is reported at 3.88 out of 5 across the group. (5 being the best)
- And the million dollar question: when will we return to normal? Most MSPs believe 3-6 months is a realistic timeline, followed by the 2nd group at 2 months.
Here’s the actual results: