managed IT service

The Power of Small Business Loans for Data Storage Companies

Small business loans can provide a valuable source of funding for data storage companies looking to scale their operations quickly. By securing a small business loan, data storage companies can access the capital they need to invest in new technology, hire additional staff, and expand their services. In this blog post, we will explore the top three reasons why small business loans are beneficial to data storage companies.

How Data Storage Companies Benefit From Small Business Loans

First, small business loans can help data storage companies invest in the technology they need to grow their operations. As the demand for data storage services increases, data storage companies must invest in new and more powerful technology to keep up with the needs of their clients. This could include purchasing new servers, upgrading to faster and more efficient data storage systems, or investing in software to manage and analyze large amounts of data. With a small business loan, data storage companies can access the funds they need to make these crucial investments in their technology.

Second, small business loans can help data storage companies hire the staff they need to support their growth. As data storage companies expand, they will need to bring on additional staff to handle the increased workload. This could include hiring data storage technicians, IT support staff, and customer service representatives. A small business loan can provide the funds needed to hire these new employees and ensure that the data storage company has the personnel it needs to meet the demands of its growing client base.

Third, small business loans can help data storage companies expand their services and reach new markets. With the funds provided by a small business loan, data storage companies can invest in marketing and advertising efforts to attract new clients and expand their services into new geographic areas. This could include launching new data storage products, developing partnerships with other companies, and investing in the infrastructure needed to support the growth of the data storage company.

Small business loans can be a valuable tool for data storage companies looking to scale their operations quickly. By providing the funds needed to invest in technology, hire additional staff, and expand their services, small business loans can help data storage companies grow and succeed in today’s competitive market.

Additional Opportunities for Data Storage Companies Looking for Financial Support

Small business loans can also help data storage companies in several other ways. For example, a small business loan can provide data storage companies with the financial flexibility to take on new opportunities as they arise. This could include the ability to seize a new business opportunity, such as a contract with a large client, without having to worry about securing additional funding on short notice.

Small business loans can also help data storage companies improve their cash flow and manage their finances more effectively. By providing a steady source of funding, a small business loan can help data storage companies smooth out their cash flow and better manage their expenses. (One way to do this is by working with Credibly.) This can be particularly beneficial for data storage companies that may experience fluctuations in their revenue due to seasonal changes in demand for their services.

Finally, small business loans can help data storage companies build a strong credit history and improve their credit score. By using a small business loan responsibly and making timely loan repayments, data storage companies can establish a positive credit history that can be valuable in the future when they need to secure additional funding. A strong credit history can also help data storage companies negotiate better loan terms and interest rates in the future.

Managed Services Agreement: The Devil Lies in the Details

When it comes to the documentation of the agreement to with an MSP, something written is always the best way to go. An agreement with an MSP should help illustrate and explain the relationship between you the receiver of the service and the MSP, the supplier. These has become an issues of concern since most start off with a Value added resellers agreement (VARs) which does not provide the details and aspects that an philadelphia managed IT service provider agreement provides.

managed_it_service

Defining an MSP Agreement

It’s a well written agreement that provides a common understanding of the service to be performed by the MSP for the client. It’s a legal biding contract that lawyers or attorney review on behalf of the clients on both sides. Appreciating that certain loopholes that may exist in the contract may come to haunt you later should inform the review and synthesize of the MSP agreement.

Often defined as a Service Level agreement (SLA) between an MSP and their client. It pertains the responsibilities of both parties from the service expected to the payment plan and options.

Differentiating an SLA from a VAR

A value added reseller’s agreement is often the start point as clients evaluate the effectiveness of an MSP to provide services. But the nature of Managed services are long term in nature and VAR cannot effectively embark on helping defining the relationship between an MSP and the client. A VAR also occurs when there is a broker involved and hence he/she take some portion of the money offered affecting both sides.

Importance of a SLA

A Managed service agreement if well developed and established is full of good things that may not appeal to both sides in the beginning but help in the wrong run; from

  • Clear documentation of the manner in which service is provided by the MSP and how it’s delivered. The documentation is easy to understand for both parties with the right jargon and illustrations.
  • Protects both parties from legal actions that can be taken by one of the parties or an outsider.
  • Helps to engage and establish how to make the customer satisfied with the delivering of service by the MSP

Aspects of a MSP agreement

  • Documents the responsibilities and roles of parties of both sides.
  • Establishes the entire service agreement between the parties.
  • Protect both parties from legal action
  • Sets apposite expectation for both sides
  • Insure the profitability of the MSP by creating a framework that ensures they are always paid on time and provided enough space to take on other clients.
  • Establish the transition from a VRA to a SLA
  • Used to measure the performance of both sides
  • Establish fees and payment schedule for the fees
  • Also considers the termination of service clause.
  • Defines the environmental prerequisite for service provision.
  • Establish a baseline from which both sides can operate from

To issue an appropriate SLA between a client and their MSP there five extra points often forgotten but are overall important to the whole document;

  • Good SLA make for satisfied customers in the long term
  • Understanding lease of power from the client to the MSP.
  • Liabilities costs definition and demarcation
  • Conflict resolution mechanism
  • Complex as it may be, it should be simple to understand the terms of service provision.