While most MSPs value the client experience, not everyone prioritizes it over profit. But that’s exactly what Farzon Almaneih did when he left the break-fix business he was a partner in to create his MSP. His bold move has resulted in 15-20% year-over-year revenue growth for Almaneih’s company, One82, Inc., an MSP serving small to medium-sized businesses throughout the California Bay Area.
A Break-Fix Beginning
When Almaneih was in high school, his older brother and brother’s friend opened a technology company, Beyond 2000. At 16, Almaneih started working for them. “By the time I was 19, we had grown from a clone computer manufacturer to a full-on IT firm, and I became a Novell-certified engineer—the youngest of only 2,500 technicians at the time,” he says. Almaneih later became a partner, and “By 1993, we had become the #1 Novell reseller in California as well as the #1 reseller for a software company called Cheyenne Software. To be blunt, this break-fix model was very lucrative.”
However, Almaneih could see some inherent issues with the break-fix model. “I was on the front lines and could see these companies’ struggles,” Almaneih says. “I just felt like there had to be a better way where we could be on the same side of the table more proactively. Although my partners told me it was risky, in 1998, I sold my shares, took the two clients I was spending most of my time on, and went out on my own.”
Building One82
In 1999, equipped with his years of knowledge, two clients, and three employees, Farzon founded One82. “In my experience, there was always a lot of finger-pointing when it came to the technology in a business,” explains Almaneih. “Whether it was a vendor failing to deliver or missing parts, the blame game ultimately affected the client. I wanted to focus solely on the desired result only—no excuses. If you flip a switch 99% of the way, the light bulb doesn’t turn on. So, from day one, focusing on delivering results and prioritizing customer care has been key.”
And for the last 25 years, this mindset has enabled One82 to more than triple its staff numbers and now service about 40 clients.
Great-Fit Clients Only
However, Almaneih won’t take just any client. Alignment is essential, he says. “Not one-sided alignment either; it needs to be a good fit for both sides. I don’t believe there’s such a thing as a one-sided good fit. As soon as the fit is one-sided, that’s when things start not working out so well, and that can manifest itself in so many different ways. So, when we’re bringing on clients, we do a lot to make sure we’re a really good match. It’s important with vendors and staff as well.”
When it comes to what clients mesh best with the MSP, Almaneih looks for businesses that match One82’s target demographic. “Our target market is accounting firms, financial firms, legal and other professional service type firms, and utility companies. These are very good markets for us—businesses that are generally less than 300 employees and more than five, who really care about their stuff working and being error free.”
This is essential, because to Almaneih, “great fit” means more than just a target market. “We’ve met companies that aren’t very bothered when there are issues. That’s a great place to be, I guess, but those aren’t the people that we usually match well with. We’re the type to be extremely proactive and making sure the right solutions are in place so that they have a really consistent environment that’s frustration-free with an optimized workflow. When companies care about that stuff, they’re going to really value the kind of service that we provide.”
Over 95% of One82’s revenue comes from managed services, with about 75% of their revenue being recurring. Their most effective strategies for lead generation include networking and referrals.
In fact, Almaneih says the biggest catalyst for growth in his MSP has been happy clients. “It’s really hard to beat happy clients,” he explains. “They go tell other people, which gets you referrals or introductions from clients to other companies. Plus, people like to check out your existing clients to get a sense for what [working with us] is going to be like. As a matter of fact, we always recommend it.”
Be Authentic, Don’t Deviate
When asked for his advice for other MSPs, Almaneih recommends, “Figure out who you want to be, be very authentic, and don’t deviate. Don’t try to be everything for everyone. I’d rather have a very small percentage market, even a single-digit market, than be something for everybody and everything. Be different and confident to be different. If you do that, you’re going to do a better job specializing. You’re going to end up finding and working with like-minded people.”
Ultimately, Almaneih’s high standards of customer care have directed his business successes and accelerated his MSP’s growth. By prioritizing his clients’ needs, Almaneih has been able to carve out a niche for himself, consisting of customers who value what his MSP has to offer.
