Starting a Managed Service Provider (MSP) business can be an exciting journey, but it raises an important question: should you quit your job to focus on it fully, or can you build it while still employed?
This decision involves many factors, including financial risks, time management, and personal pressure. You’ll want to know the benefits and drawbacks of both options so you can make an informed choice that suits your situation.
In this article, you'll learn about strategies to succeed in launching your MSP, whether you choose to dive in headfirst or take a more gradual approach while working. There are many challenges you will encounter, such as managing your existing workload and trying to attract clients. Understanding these elements will help you navigate this transition effectively.
Key Takeaways
Decide if quitting is right for your MSP journey.
Understand the pressure that comes with starting a business.
Build strong systems and a network before making big changes.
Starting Your MSP: The Essentials
Do you want to create a Managed Service Provider (MSP) business but feel uncertain about leaving your job? You can either quit right away or build your business while still employed. Each choice has its pros and cons that you should consider.
Cold Turkey Method
If you choose to quit your job and focus entirely on your MSP, be ready for a big commitment. Here are the key points for this approach:
Total Focus: You can dedicate all your time to your business without distractions from an employer.
Rapid Growth: This method may lead to faster growth because you're fully involved.
Prepare in Advance: Before quitting, work on foundational tasks like creating a website, designing business cards, and setting up your social media accounts.
Challenges:
Financial Risk: You won’t have a steady income, which can be stressful. Consider building a savings cushion to support yourself for 6 to 12 months, or even longer if possible.
Time to Get Clients: Finding your first clients can take longer than expected. This can put additional pressure on you.

Starting While Employed
If you want to keep your job and start your MSP as a side project, here’s what to know:
Steady Income: You’ll have regular paychecks that can help support you while you build your business.
Lower Risk: This option reduces financial stress since you have a backup plan.
Testing Ground: You can experiment with services and pricing without the fear of complete failure.
Drawbacks:
Limited Time: Balancing a job and a side business can be tough. You may need to work during evenings and weekends to make it work.
Tips for Success
Regardless of your choice, here are some strategies that could help:
Build a Client Pipeline: Start networking early to find potential clients and leads.
Initial Cash Flow: Look for consulting gigs or one-time services that can provide some immediate revenue.
Set Up Systems: Get your administrative tools in place before you quit or fully commit to your MSP.
By weighing these options, you can make a more informed decision about how to start your MSP.
Choosing Between Quitting and Starting a Side Business
Starting a Managed Service Provider (MSP) business can be a tough decision. You might wonder whether to leave your job or build your business while still employed. Let’s look at the pros and cons of each choice.
Going Full-Time Right Away
Pros:
Complete Focus: You dedicate all your time and energy to your new business. This can lead to faster growth.
No Conflicts of Interest: You won’t have to worry about splitting your attention between your job and your business.
Cons:
Financial Risk: Leaving your job means no guaranteed income. You need to be prepared for this significant challenge.
Pressure to Succeed: The lack of a safety net can create high pressure, which can feel overwhelming.
Here are some tips if you choose to quit your job:
Savings: Aim for 6 to 12 months’ worth of expenses saved. More savings equal less pressure.
Build Your Pipeline Early: Start networking and finding potential clients before you quit.
Get Some Early Cash Flow: Offer consulting jobs or other services to bring in income as you start.

Starting While Employed
Pros:
Steady Income: You will have a reliable paycheck, which lowers your financial stress.
Test Your Business: This option allows you to try things out, from pricing to services, without the pressure of needing immediate success.
Cons:
Limited Time: You may need to work evenings and weekends to build your business.
Possible Burnout: Balancing a job and a side hustle can lead to exhaustion.
Deciding whether to quit or to start a side hustle depends on your personal situation and comfort with risk. Consider your financial needs and how much time you can devote to your new venture.
Advantages and Disadvantages of Going All In
Dedication to Your Business
When you choose to go all in, you’re fully committed to your new venture. You won’t be splitting your focus between your job and your business. This focus can boost your productivity and help you progress faster. You can put all your energy into building your brand and establishing your client base without distractions.
Chance for Fast Progress
Going cold turkey opens the door for quick growth. You can make important decisions and implement changes without waiting for approval from an employer. This direct approach can minimize delays and accelerate your path to success, often leading to faster results than if you were juggling another job at the same time.
No Conflicts with Your Job
By quitting your job, you eliminate potential conflicts of interest. You can operate freely without worrying about competing with your employer. This can allow you to develop your own strategies and build relationships without being held back by existing company policies or ethics. You will have more freedom to explore your business ideas fully.
Cons of Leaving Your Job to Start an MSP
Financial Risks Involved
Quitting your job to start a managed service provider (MSP) business can lead to significant financial challenges. With no steady income, you have to manage your bills and expenses without a paycheck.
This risk can be overwhelming, especially at the beginning, when your new business has not yet started making money. It’s important to have enough savings to cover your living costs for several months while you get up and running.
Pressure to Succeed
Choosing to go all in on your business increases the pressure to succeed. The need to quickly generate income can be stressful and may drive you to work harder. While some people thrive under pressure, it can be too much for others. High expectations for quick results can make the journey more difficult than anticipated.
Time to Acquire Initial Clients
Finding your first clients can take longer than expected. Many new business owners underestimate this timeline. You may face a dry spell before you bring in any paying customers.
This waiting period can be discouraging, yet it's a normal part of starting a new business. It’s essential to have patience and prepare for this challenge in advance.
Strategies for Starting Your MSP Cold Turkey
Preparatory Steps Before Quitting
Before you leave your job, start working on the essentials for your Managed Service Provider (MSP) business. Create business cards and set up your website and social media accounts. This preparation will help you use your time effectively once you have no income.
Importance of Financial Savings
Having savings is crucial if you decide to quit your job. Aim for at least six to twelve months’ worth of expenses. Building up a larger safety net can ease some pressure as you start your business. More savings mean less stress and more time to grow.
Building a Client Pipeline
Begin networking even before you leave your job. Identify your target customers and start developing a list of potential clients. Offering consulting services or one-time projects can bring in some initial cash flow.
Securing your first customer is a significant milestone, even if it isn’t recurring revenue yet. Setting up your systems early—like your invoicing and service tools—will give you a strong foundation for when you fully commit to your MSP.
Strategies for a Smooth Transition to Full-Time MSP
Making the switch to full-time Managed Service Provider (MSP) can be daunting. Here are some practical strategies to help you along the way:
Build Your Savings: Aim for 6 to 12 months of living expenses saved. The more you save, the less pressure you'll face. Consider saving even more if you want extra security.
Network Early: Start networking before you leave your job. Attend events, connect with potential clients, and build relationships. This can help create a list of leads even before you go full-time.
Offer Consulting Services: Take on short-term gigs or consulting work to generate initial income. This helps build cash flow and offers experience with clients.
Prepare Business Essentials: Set up your business tools and systems in advance. This includes your invoicing, website, and management tools. The more prepared you are before transitioning, the smoother the process will be.
Focus on First Customers: Getting your first client is a big step. It’s validating and boosts your confidence. Try to target recurring revenue opportunities, even if the initial contracts are smaller.
Manage Your Time Wisely: If you choose to keep your job while starting your MSP, be ready to work evenings and weekends. Having a steady income is beneficial, but it may limit your free time.
These strategies can help you navigate your transition to becoming a full-time MSP while minimizing risks.

Subsections
When starting your managed service provider (MSP) business, you face important choices. You can either quit your job to focus on your new venture or build your business while working. Each option has its own benefits and challenges.
Going All In
Choosing to quit your job and dive into your new business comes with both advantages and disadvantages.
Pros:
Full Commitment: You dedicate all your energy to your business without juggling another job.
Fast Growth Potential: With focused effort, growth can happen quickly.
No Conflicts of Interest: You won't have to balance commitments to your current employer.
Cons:
Financial Risk: Without a steady income, you may find it difficult to pay bills.
High Pressure: The necessity to succeed can feel overwhelming.
Delayed Client Acquisition: It may take longer than you expect to land your first clients.
To prepare, consider building business foundations early, like getting business cards and setting up a website. Aim to have savings to cover 6-18 months of expenses. Networking is also key; start finding potential clients before you quit.
Building a Side Hustle
Alternatively, you could keep your job while building your MSP.
Pros:
Steady Income: Your job provides financial support as you grow.
Less Pressure: You have a safety net if the business struggles.
Testing Grounds: This setting allows you to refine your services, pricing, and processes without urgency.
Cons:
Time Limitations: You may need to work on evenings and weekends.
Slower Growth: Progress can be gradual, which might not suit everyone's style.
By recognizing your strengths and limitations with either choice, you can make an informed decision that works best for you. Find out more about starting an MSP by subscribing to Growth Generators blog.
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