The Imaging Channel

From Unhappy or Unemployed to $100,000+

This guest blog was contributed by Brian Stevenson.

Why do so many employees feel trapped in their jobs these days? According to the latest survey from Right Management, an unbelievable 84 percent of employees plan to actively look for a new job in 2012 (http://www.right.com/news-and-events/press-releases/2011-press-releases/item22035.aspx). When asked why, the answers seemed to indicate a general lack of trust in management – feeling their leaders lack a strategy to grow the business and expand the opportunities of employees.

Do you fit into the significant majority? If so, or if you are already on the sidelines waiting for your next opportunity, what options will you explore in 2012? One option that might be worth a closer look is self-employment in the managed print services industry.

Step away from your current unhappiness and hang a shingle on your door. Within 30 days, you will be in a position to secure clients and grow your own business. Five years ago, the option of leaving “The Man” and becoming an instant competitor didn’t exist in our industry. However, today things have changed.

A quick FAQ on self-employment in MPS:

Q1. My customers will need a service team. How can I handle this as a one-man team?

A1. There are many independent organizations that have coverage across the USA and Canada and are fully certified on HP, Lexmark, etc. In addition, many come with triage support that far exceeds your current/previous company’s capabilities.

Q2. My customers will need supplies. How do I get access to them on my own?

A2. The options here are varied and also cover North America, providing access to both OEM and aftermarket supplies. You can also leverage an automated toner replenishment system that truly works to the level you have been promising your customers.

Q3. I don’t want to manage call dispatch and customer support. What other options are out there?

A3. There are outsourcing options that provide a fully trained call center possessing a deep knowledge of printers and MFPs. In most cases, these call centers are dedicated to print and have more training on the devices than you. It’s likely the “noise” you hear from your new customers will be significantly less than you experienced in the past.

Q4. I need to bill and collect from my customer. Are there resources that can help me with this?

A4. Absolutely, and there are some terrific leasing companies that will tailor a solution to your needs, including the option to have the leasing company provide all of the billing and collecting while still allowing you to own your customer (which is critical).

Q5. I don’t have the experience on how to accurately price out a cost-per-impression (CPI) solution for my customers. Are there tools out there that can assist me?

A5. In an effort to remove your pricing risk, you can purchase your CPI solution the exact same way that you sell it. This way, you can have total certainty about your margins before you sign your customer up in an MPS contract.

Do you see where I’m going with this? Within 30 days, you have the ability to access partners that can support all of these key requirements, often at a level much higher than your current/previous company’s capabilities allowed. So why aren’t more people doing it? I think it’s FUD: fear, uncertainty and doubt.

Fear: Can I really sell without a parachute?

Uncertainty: Can I afford the time it will take to build a business from scratch?

Doubt: Is it really that easy to set up the business and begin selling within 30 days?

Well, only you can answer the questions about your selling skills and resources. If you have a proven track record of selling and understand MPS, you may be in a good position. Let’s take a look at some assumptive data; be honest with yourself about your capabilities and forecast whether your results would be higher or lower:

This assumption is based upon:

1. Selling six new customers per year,
2. Your average CPI (service and supplies) revenue per client being $3,000 per month,
3. Your average margin being 32 percent, and
4. Hardware revenue generating $300,000 per year, with a 20 percent margin.

Based upon these assumptions, your gross margin (income) in the first year would be $94,200. While it may seem like a lot of effort to make $94,200 (and it is), you have set yourself up for an excellent second year if you continue to perform at the same level. If you repeat the same level of success in your second year, your income jumps to $162,600. By the end of the fifth year, if you have continued to perform at the same level through the first five years, you will be managing 30 customers, and your annual gross income will be over $350,000. The chart below shows the CPI trend, and if you’d like to see the detailed math, please click here: http://footprintmps.com/from-unhappy-to-$100k-.html.

MPS is called the “Get Rich Slowly” model for a reason, as the first year is challenging, but make it through, and you’re on your way to a very successful income.

Now, this isn’t for everyone, and there will be some cost and time requirements involved to successfully launch your business. However, there are people and companies that specialize in all facets of MPS, whether it’s service, supplies, call center, website design, leasing, billing and collecting or customer support. The help is out there, and it truly is easier than you think.

The barriers to entry into MPS have essentially been removed for everyone. This is why nontraditional companies have joined MPS, ranging from MSPs to DMRs (think CDW). Many of these companies will become significant competitors in the managed print space without building any MPS infrastructure of their own.

If you have the MPS knowledge, the desire to maximize your earnings and the commitment to work extremely hard for those first 24 months, the best-of-breed program you develop will compete favorably with any of your competitors selling MPS.

If you’re interested in learning more about the possibilities around launching your own MPS business, you should attend the upcoming “No Rules” MPS Workshop in Las Vegas on January 16, sponsored by the Managed Print Services Association (MPSA). It’s free for MPSA members and only $149 for nonmembers (which incidentally is the same price as a membership to join the MPSA). Many of the top reps across the country as well as leading MPS thought leaders will be there. Spaces are still available, but registration closes at the end of this week. Contact Joe Barganier at buckeyefenn@att.net to sign up.

Happy holidays, and all the best in 2012, wherever your shingle may hang.

Contact Brian Stevenson at bstevenson@footprintmps.com.

Posted by Brian Stevenson on 12/15/2011