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ServiceMedium£2k–£10kFirst sale: 1–3 months

Outsourced IT Support

Become the outsourced IT department for 5–20 person SMEs

Become the outsourced IT department for 5–20 person SMEs.

As an outsourced IT support provider, your day-to-day work involves setting up and managing remote monitoring and management tools, troubleshooting issues, and providing training for employees of your SME clients. You'll typically communicate via phone, email, or video calls, responding swiftly to any IT-related inquiries that arise, ensuring their operations run smoothly and securely.

The demand for outsourced IT support is surging as SMEs increasingly rely on technology but lack the budget for in-house teams. With the recent shift to hybrid working models, SMEs are looking for affordable solutions to maintain their IT infrastructure while managing costs, making this the right time to enter the market and offer your expertise.

A founder with a background in IT, customer service, or project management will thrive in this role. Expect to invest around 20-30 hours weekly setting up your business and acquiring clients. Building a strong reputation through referrals will be essential for long-term success and scalability.

In the first 12-24 months, you could scale to a portfolio of 10-15 clients, generating monthly revenue between £4,000 to £12,000. With an efficient operation, your business could see gross margins of 60-70%, allowing for reinvestment into marketing and tools to further enhance service delivery.

Skills you'll need
  • IT
  • Support
Monetisation

£40–£80 per seat/mo

Gross margins are estimated at around 60-70%, depending on operational efficiency and client management.

Why now

The UK SME sector is rapidly digitising, with more businesses seeking flexible IT solutions as remote and hybrid work becomes the norm. Additionally, the cost-of-living crisis has prompted many SMEs to look for cost-effective ways to maintain their IT needs without hiring full-time staff.

Who pays you

Your ideal customers are small to medium-sized enterprises with 5-20 employees, often in sectors like retail, professional services, or creative industries. These businesses typically lack dedicated IT staff and require outsourced support to manage their technology effectively.

UK market

The UK IT support market is projected to reach £8 billion by 2025, driven by increasing reliance on technology among SMEs. Approximately 98% of UK businesses fall under the SME category, highlighting a significant opportunity for targeted IT support services.

Revenue & pricing

Charge clients on a per-seat basis, typically between £40 to £80 per month, depending on the level of service and support required. You may also introduce add-on services for additional revenue, such as cybersecurity and data backup solutions.

  • Basic Support Package: £40 per seat/month, includes remote support and monitoring.
  • Standard Support Package: £60 per seat/month, adds on-site support and regular IT audits.
  • Premium Support Package: £80 per seat/month, includes comprehensive support, cybersecurity, and backup services.
  • Custom Solutions: £100+ per seat/month, tailored services for unique business needs.
Realistic year one: In your first year, you may generate £48,000 to £96,000 in revenue, with potential profits ranging from £15,000 to £30,000 after expenses. Initial growth might be slower as you build your client base and reputation.

Costs

Startup costs
  • Remote Management Tool Subscription (NinjaOne)£600/year
  • Website Development£1,200
  • Marketing Materials (brochures, business cards)£300
  • Initial Advertising Budget (Google Ads, Facebook)£1,000
  • Business Registration and Insurance£500
Monthly running costs
  • Remote Management Tool Subscription£50/month
  • Website Hosting£20/month
  • Marketing Expenses£100/month
  • Business Insurance£40/month

First steps

  1. 1Build remote tools (NinjaOne)
  2. 2Pitch local SMEs
  3. 3Charge per seat

Your first 90 days

First 30 days
  • Register your business with Companies House and set up a business bank account.
  • Choose and set up your remote management tool and other necessary software.
  • Create a professional website and social media profiles to establish an online presence.
  • Develop marketing materials and start networking with local SMEs.
  • Launch initial marketing campaigns to generate leads and schedule pitches.
30–90 day milestones
  • Secure your first 2-3 clients, delivering exceptional service to build testimonials.
  • Refine your service packages based on client feedback and demand.
  • Establish a referral program to incentivise existing clients to recommend your services.
  • Begin tracking performance metrics to measure growth and client satisfaction.
  • Evaluate your marketing efforts and adjust your strategy for better lead generation.

How to get customers

Local Networking Events

Attend local business meetups to establish connections with potential clients.

Social Media Advertising

Use targeted ads on platforms like LinkedIn to reach SMEs.

Email Campaigns

Build an email list of local businesses and send regular updates or newsletters.

Content Marketing

Create blogs or guides on IT best practices to position yourself as an expert.

Tools you'll actually use

ToolCostWhy
NinjaOne£50/monthEssential for remote management and client support.
TideFreeEasy-to-use banking for managing finances.
Xero£30/monthFor accounting and invoicing needs.
CalendlyFree (basic)Facilitates scheduling client meetings easily.
StripeVaries (transaction fees)For processing client payments securely.

Common mistakes to avoid

  • Underestimating the time required for client acquisition and relationship building.
  • Failing to clearly define service packages and pricing, leading to confusion.
  • Neglecting to establish efficient processes for onboarding and support.
  • Not investing in marketing early enough, resulting in slow initial growth.
  • Ignoring the importance of client feedback for improving services.

How to scale this

  1. 1Start solo by managing a small client base to establish your processes.
  2. 2Hire freelancers or contractors as demand increases to handle more clients.
  3. 3Implement automated systems for support and client management to increase efficiency.
  4. 4Consider expanding services offered to include cybersecurity or cloud solutions.

Risks & mitigations

Risk

High client turnover due to dissatisfaction.

Mitigation

Ensure strong customer service and regular check-ins.

Risk

Rapid technological changes outpacing skills.

Mitigation

Invest in continuous professional development and training.

Risk

Competition from larger IT firms.

Mitigation

Differentiate by offering personalised service and local expertise.

Risk

Data breaches or compliance issues.

Mitigation

Stay updated on GDPR and ensure robust cybersecurity measures.

UK legal & compliance

  • Register your business with HMRC for tax obligations and compliance.
  • Obtain necessary insurance to protect against liability claims and data breaches.
  • Comply with GDPR regulations when handling client data, including data processing agreements.
  • Ensure all contracts with clients are clear and cover terms of service and payment.

FAQ

What types of SMEs can benefit from outsourced IT support?

Any SME lacking in-house IT expertise, particularly those in technology-reliant sectors.

How do I determine my pricing strategy?

Analyse competitors and consider your service level to find a competitive price point.

What if I encounter technical issues I can't solve?

Build a network of trusted peers for collaboration and support.

How can I grow my client base?

Focus on networking, referrals, and targeted marketing efforts to reach new clients.

What tools do I need to get started?

Invest in remote management tools, accounting software, and a solid website.