7 ways to survive IT budget season

For most SMB clients, IT budget season is something to get through, not plan for. It’s an expense that seems to grow every year between updated services and technology upgrades, and clients have to justify the cost. At the end of the day, they will simply choose whomever sent the cheapest quote. 

Oftentimes, this commoditized approach stems from a lack of knowledge. Nobody has ever shown them how to approach it strategically. This knowledge gap is an opportunity for your MSP to offer a clear roadmap and an honest conversation. It’s the perfect chance to show your client how you are the IT partner they can’t imagine budgeting without.  

We asked MSP owners how they guide clients through budget season. Here are seven ways to make it work for your clients and your business. 

1. Start before the client asks for a number 

The first time a client hears about their upcoming technology needs should not be at the end of a fiscal year or after aging infrastructure fails. The best budget conversations begin months ahead of the client’s fiscal year and look out further than the next 12 months. 

“Budgeting should be an ongoing conversation. Stop making your clients ask you what’s coming next. Even a simple annual roadmap showing what needs attention now, next year and over the following few years is better than handing a client an unexpected quote when something reaches end of life.” 

— Jonathan Fitzgerald, Managing Partner, GDS Technology 

“We try to start the budget discussion 90 days before the end of their fiscal year, and we shoot for a two- to three-year budget with planned outlays and discussions about where they feel their business will be in two, three and five years.” 

— John Kistler, Owner, J&B Technologies 

2. A budget conversation isn’t a sales pitch 

Clients tune out anything that feels like a pitch. When budgeting is a standing part of the yearly reviews they already attend, the numbers feel like planning instead of selling.  

“We don’t run budgeting as a separate sales conversation. Each client’s vCIO builds an annual technology budget forecast into their strategic business reviews, so the numbers show up as part of planning the client already expects.” 

— Adam Barney, President, Framework IT 

“Don’t do it in the first couple technology business reviews. You want it to be a true review of the state of the union with IT. From there, they’ll trust that the meetings are truly in their best interest.” 

— William MacFee, President, System Support 

“Offer vCIO services to your clients. Until your clients feel like you are as interested in their growth as they are, you’re just a line item on the income statement.” 

—Kistler 

3. Translate technology into business impact 

Most decision-makers don’t need to understand how a firewall works, but they do need to know why their business needs it. Frame recommendations around what it means for security, insurance, growth and, especially, day-to-day business. 

“We start by asking what’s happening in their business, not what technology they want to buy. Are they expanding? Adding employees? Taking over another property? Those conversations naturally tell us where technology investments may be needed. The technology is the solution. The business impact is the conversation.” 

—Fitzgerald 

4. Build a plan based on technology lifecycles 

You can’t build an accurate budget without knowing what a client owns, how old it is and when support expires. That information lays out a timeline so you can plan phased replacements, helping keep individual project costs down and spread out over months or years.  

“A $5,000 equipment purchase doesn’t necessarily mean a $5,000 project. Good budgeting needs to reflect the actual cost of getting the work completed, not just the hardware price.” 

—Fitzgerald 

“Don’t overthink it. Allow clients to see what’s on the horizon, but you don’t need to nail down the next three years. Chances are, your client isn’t thinking past the next holiday.” 

—MacFee 

“Surprise costs are one of the biggest complaints we hear from prospects about their current provider, and a forecast the client saw months earlier takes the surprise out.” 

—Barney 

5. Show clients where and how they are already spending money 

Many clients treat technology costs as unexpected, even though they come up every year. Show them how spending money up front will keep their business running, vs spending more to fix an issue later or losing out on business due to downtime.  

“A business is already spending money, albeit sometimes not very wisely, and our goal is to show that the money is going to be spent either way, hurried and rushed, or planned and with a business goal.” 

—Kistler 

6. Phase the plan instead of cutting it 

Every client will say the budget isn’t there. Instead of pushing or dropping recommendations, spread them out over multiple cycles. Keep security as the highest priority, but let hardware that’s aging but still supported wait a cycle.  

“The budget is never there unless it’s a regulatory or compliance requirement.” 

—Kistler 

“We also have to be willing to tell clients when they don’t need to spend money. That kind of honesty goes a lot further toward building a relationship than constantly presenting another quote.” 

—Fitzgerald 

7. Hold the line on security 

When a client wants to cut something that creates serious exposure, explain the risk clearly and get their decision on record. Flexibility can only go so far, especially when it can put you and your client at risk. 

“When a client declines a recommendation that creates risk, we document it. Our agreement spells out that not following our advice can change what we’re able to support, so everyone knows the tradeoff before they make the call.” 

—Barney 

“Stand your ground. You are the expert. Don’t let them keep MFA off when it will turn into an email compromise event that costs the client massive downtime and embarrassment. Somehow, it’ll still be your fault even if you have them sign the ‘I told you so’ letter.” 

—MacFee 

Stop making clients ask what’s coming next 

Clients who budget with their MSP rather than around it, start bringing that MSP into bigger business decisions. That’s the shift from vendor to partner, and it starts with a simple plan. 

Budget season is coming either way. The MSPs that show up first with a plan are the ones that never have to compete on price.