Plan B Business
Technology

Stop running an IT shop.
Start operating an MSP.

We work with IT service providers doing $500K-$5M in annual revenue who want to graduate from break/fix to true Managed Service Provider economics. Our 12-month engagement gets you to 60%+ recurring revenue, vertical-specific positioning, and a predictable cash flow.

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Industry Reality

7 patterns we see in >70% of msps & it service providers

85%
frequency

Break/fix model dominates (under 25% MRR)

Root cause: Revenue is dependent on client outages. Slow ticket month = slow revenue month. Cash flow unpredictable.

What we do: Build 3-tier MSP offering: Basic ($800-$1,500/mo) / Pro ($2,000-$4,500/mo) / Enterprise ($5,000+/mo). Migrate existing clients to managed agreements over 9 months.

75%
frequency

No vertical specialization (you serve 'anyone with a computer')

Root cause: Generalist positioning. Compete with every other MSP in town on price.

What we do: Pick 1-2 verticals (legal, dental, accounting, manufacturing). Build compliance frameworks (HIPAA for dental, SOC 2 awareness for legal). Become 'the MSP for [vertical]' in your region.

65%
frequency

Client concentration risk (top client = 30%+ of revenue)

Root cause: One whale client built the business. Now you're dependent.

What we do: Aggressive client diversification. No client over 15-20% of revenue. Active prospecting for similar-sized clients.

70%
frequency

Technician retention at 50% annually

Root cause: Below-market salary, no clear advancement path, on-call burnout.

What we do: Tiered tech compensation (T1/T2/T3 with clear salary bands). Pager rotation system. Education stipend. Path to Senior/Manager/CTO.

70%
frequency

Service margins under 30%

Root cause: Reactive support eats time. No standardization. Custom solutions for every client.

What we do: Standardized service stack (you choose the tools, clients choose tier). Automation for 60% of recurring tickets. Margin lift from 25% to 40%+.

80%
frequency

No proactive cybersecurity service offering

Root cause: MSP does basic AV + backup. Doesn't offer managed XDR, SOC services, compliance audits.

What we do: Partner with vetted security vendor or build internal SOC capability. Add Managed Security as Tier 2/3 service. Premium pricing - 30-50% margin uplift.

75%
frequency

Sales process: 'whoever calls first wins'

Root cause: No defined sales process. Owner-MSP does all sales. Conversion erratic.

What we do: Defined sales process: discovery → assessment → proposal → close. Sales tracking in HubSpot or similar. Conversion lifts from 25% to 50%+.

Benchmarks

The numbers we hit

KPIMarket avgPlan B targetAfter 12 mo
% revenue from MRR contracts20-35%70%+50-72%
Average MSP contract value (monthly)$1,200-$2,500$3,500-$8,000$2,800-$6,500
Client retention (annual)75-85%92%+85-94%
Service margin (excluding hardware pass-through)20-35%45%+38-48%
Tickets per technician per day8-125-7 (quality over quantity)5-9
Lifetime value per client (24 months)$12,000$80,000+$55K-$95K
Owner-MSP weekly hours55-65<4035-45
Engagement Model

What working with us looks like

  1. 01

    Month 1: Service catalog + financial audit

    We map every service you currently deliver, every client's actual margin, every technician's utilization. We identify the 1-2 highest-margin verticals to double down on.

  2. 02

    Months 2-3: MSP tier structure + vertical focus

    Build the 3-tier service offering. Define your target vertical(s). Start migrating top-revenue existing clients to managed agreements. Tech compensation restructure begins.

  3. 03

    Months 4-6: Sales process + security add-on

    Defined sales process operational. CRM (HubSpot/PSA) deployed. Cybersecurity add-on launched. First 3-5 net-new vertical clients close.

  4. 04

    Months 7-12: Operations + ownership freedom

    Service margins lift. Owner-MSP role shifts to strategic. We move to quarterly cadence. Goal: MSP runs on systems, processes, and a tech team - not on owner heroics.

Common questions from msps & it service providers owners

What size MSP is this for?−
Sweet spot: $500K-$5M revenue with 3-15 technicians. Below $500K, you need different help (solo MSP advisory). Above $5M, you need internal COO and we'd hand off.
We're 80% break/fix. Can we really get to 60%+ MRR in 12 months?+
Yes, but it requires discipline and willingness to sacrifice some legacy clients who won't move to managed agreements. The migration path: month 1 audit, month 2-3 offer creation, months 4-9 client migration, months 10-12 net-new MSP growth.
What about ConnectWise / Datto / Kaseya / N-able stack choices?+
We're tool-agnostic. We help you choose the stack that fits your service model, but we don't pick winners between vendors. Our value is in service design, sales process, and economics - not in tooling religious wars.
Do you help with M&A or selling the MSP?+
Yes. As part of our Partner-tier engagement, we help MSPs prepare for sale. Most MSPs are valued at 4-7x EBITDA. The work we do (recurring revenue, client diversification, documented processes) directly increases multiple.
Cybersecurity is exploding. Should we go all-in on MSSP?+
Maybe. The pure MSSP path requires specialized talent and tools that most MSPs underestimate. Our recommendation: layer Managed Security as a premium tier on top of MSP services. Get 70% of MSSP economics without the 100% of MSSP risk.
Who does the work?+
Ligal Frish and Eitan Eshtemaker. The co-founders. Not associates.
What's the fee structure?+
Diagnostic: $1,500 one-time. Advisor: $3,500/month (most MSP engagements). Partner: $8,500+/month (multi-location MSPs or fast-growth scenarios).
What if we're not in the US?+
We work with MSPs across US, Canada, UK, Australia, and Israel. Compliance frameworks (HIPAA, PCI-DSS, GDPR) and tooling preferences vary slightly but the strategic methodology is universal.

Stop running an IT shop. Build a real MSP.

30-minute strategy call. We'll diagnose your top 2 levers and tell you if we're a fit. No pitch. No pressure.

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