According to George, scaling up is a smart strategy for anyone planning to compete for customers in key verticals within big cities.
“If you want to be in an MSA and you want to be in those five verticals, you’re going to need to be at least a $10 million or more MSP per year,” he says. That’s $10 million in recurring managed services revenue, he adds. Hardware, software, and project income doesn’t count.
Not planning to grow that big? “Choose other verticals,” George counsels. “Go be the largest provider in the funeral service business in downtown Boston and you’ll be just fine.”
Targeting customers in the five high-revenue industries remains an option too, he notes, provided you set up shop someplace far away from wherever people live in large numbers.
“Just get 30 miles or more outside of that MSA, and then you can start to go after those verticals again,” George states.
Of course, if none of those strategies sounds appealing, you can always take advantage of today’s M&A wave and sell your business to someone else, he notes. Just don’t wait too long to get that process rolling.
“It’s better to get out now while the game of musical chairs is playing, and there’s still lots of chairs to get into,” George says. “It’s not fun when you’re down to the last chair in that game.”
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