When determining which industry your MSP should target, the real question isn’t about finding the hottest industry. Instead, it’s about focusing on where your experience and expertise fit best. Let’s dive deeper into how to make the right choice for your business.
Understanding The Usual High-Value Industries
There are some well-known industries where MSPs traditionally find success: medical, legal, manufacturing, and financial services. Why? These sectors are often burdened with regulatory compliance requirements, which forces businesses to spend on IT to avoid massive risks. For example, medical practices must comply with HIPAA, while contractors working with the Department of Defense need to meet CMMC standards. This “gun to the head” approach is what drives companies in these sectors to invest heavily in their IT infrastructure and security.
However, just because an industry requires heavy IT support doesn’t mean it’s an untapped goldmine. In fact, it’s quite the opposite—where there’s demand, there’s also competition. Many MSPs focus on these areas, meaning you’ll face stiff rivalry. And remember, every industry has both high-paying clients and budget-conscious ones. You won’t escape this reality just by picking a certain vertical.
Don’t Chase Trends; Play To Your Strengths
Too many MSP owners make the mistake of asking, What’s the hottest industry? when the real question should be, What industry makes sense for me?
Let’s say you have a background in law. You’ve worked as an attorney, your family has ties to the legal field, or you just understand the pain points law firms face when it comes to IT. In that case, it makes perfect sense to focus on legal clients. Why go after medical or manufacturing if legal is where you shine?
This concept applies to any industry. If you’ve got a background in healthcare IT, leverage that experience to build a strong offering for medical practices. If you’ve worked in manufacturing, your insider knowledge can help you tailor solutions specifically for that sector.
For me, I chose the IT industry because it fit my skill set and my background in selling intangibles. Selling IT services is similar to selling marketing or advertising services: it’s about managing long-term contracts, building trust, and providing ongoing value. MSPs are detail-oriented, which fits with how I’m wired, so it’s a natural fit. I understand the psychology and buying process of MSPs, making it easier for me to connect with them and provide solutions they actually need.
That’s what you need to do—find the industry that aligns with your experience, personality, and skills. When you do this, you’re not just another MSP vying for attention in a crowded market. You become a specialized expert who can offer real value, which sets you apart from your competitors.
How To Leverage Trade Shows
Trade shows are often overlooked as a key marketing and networking tool, but if used strategically, they can help you break into new industries. If you already attend industry-specific shows for sectors you support, that’s great! But don’t be afraid to explore new ones. Start by identifying trade shows in industries you want to target, then attend these events to learn and network. Even if you’re not exhibiting, attending can provide valuable insight into trends, challenges, and opportunities.
For example, if you’re thinking about targeting the dental industry, go to a dental trade show and observe. What are their biggest IT challenges? What solutions are they already using? Who are the key players? This research helps you understand the industry before diving in, which allows you to build more targeted marketing and sales campaigns.
Don’t be afraid to step outside your comfort zone, but always keep in mind who you want to work with. If an industry excites you, attend trade shows and networking events where those people gather. These opportunities could lead to partnerships or clients that you wouldn’t have found otherwise.
Make Sure You Enjoy Working With The Clients You Serve
Beyond industry trends and trade shows, there’s an often overlooked aspect of client relationships—enjoying the work. It’s important to choose industries and clients that energize you. Who do you want to be a hero to? If you’re dreading every client meeting because the industry doesn’t light you up, that’s a red flag.
When you work with clients you enjoy serving, not only is the work more fulfilling, but you’re also likely to provide better service. Your enthusiasm will shine through in everything you do. Remember, the goal is to be able to do your best work, and that’s only possible when you genuinely enjoy who you’re working with.
Final Thoughts
Choosing the right industry for your MSP isn’t just about jumping on the latest trend or targeting sectors with the highest IT spend. It’s about finding a balance between your expertise, your interests, and the opportunities within a given field. When you do this, you’re not just chasing the next “hot” thing—you’re creating a sustainable, thriving business where you can truly excel.
