Technology · Recurring Services

Managed IT Services (MSP)

An MSP is one of the cleanest recurring-revenue businesses in the trades-and-services world: you charge a fixed monthly fee per seat to keep a client’s technology running, and that base compounds with every seat you onboard. You are not selling projects; you are building an annuity of seats under management, delivered by a team of technicians and a stack of tools.

Recurring per-seat revenueScales with seats under managementTech team is the engine and the costHigh-multiple exit on the recurring base
Read the launch plan: every step from deciding to opening, free →
01

The Snapshot

Is this worth your attention?

$500k-$10M
Typical annual revenue
small to mid-market MSP
18-30%
SDE margin (owner cash flow)
before your pay; thin if over-staffed
$28k-$156k
Cost to start
laptops, office, spare stock, insurance
1-3 yrs
Typical payback
faster when buying a seat base
Medium-High
Day-to-day difficulty
people and ticket-flow intensive
Medium
Absentee potential
once a service manager runs delivery

Cited sources Typical bands for this kind of business, compiled from the public sources listed under Sources and method; they are a synthesis, not figures copied from any one source. Estimates, not forecasts; a specific business varies with its location, lease, equipment and owner. Last reviewed 2026-07-07. smbnest is a self-assessment tool, not individualized advice.

A fit if you…

  • Want recurring per-seat revenue, not one-off project work
  • Can recruit, train, and retain technical staff
  • Can sell a monthly agreement on value and trust
  • Can run tight ticket flow and seats-per-tech efficiency
  • Are comfortable owning security and uptime for clients

Probably not if you…

  • Want a hands-off business from day one
  • Dislike managing a technical team and client escalations
  • Prefer big lumpy project fees over steady recurring revenue
  • Are not willing to invest in security and tooling
02

Step Inside the Layout

A live look at one tool inside

This is the actual 3D floor from the full model - drag to explore it. Inside, you configure the space yourself and watch the economics move with every choice.

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Sources and method7 public sources, with the year and a link where the source gives one. The benchmark bands are smbnest's synthesis of these sources, not figures copied from them.

Sources & Method

Figures are compiled from the public sources below; the bands are a synthesis of them, not copies

How these numbers were built: technician wages come from the U.S. Bureau of Labor Statistics (OEWS for SOC 15-1232, Computer User Support Specialists); establishment counts and industry size come from the U.S. Census Bureau (County Business Patterns for NAICS 541513, Computer Facilities Management Services); per-seat pricing, recurring-revenue mix, and seats-per-tech benchmarks come from MSP industry sources such as CompTIA and Kaseya; firm survival rates come from the Census Bureau’s Business Dynamics Statistics; and financing terms and the size standard come from the SBA. These are starting assumptions; the moment you enter a real MSP’s clients, seats, per-seat price, headcount, and tool costs, your numbers should replace ours. Figures are current as of 2025-2026 and refreshed as the sources update.

Cost ratios draw on the existing CompTIA/Kaseya industry-benchmark source and BLS wage data already cited in this file's sources map; the owner cash flow band is checked against BizBuySell's SDE medians for IT and software service firms sold from 2021 to 2025 and Service Leadership's best-in-class adjusted EBITDA; seats-per-tech and recurring-mix ranges are directional industry benchmarks rather than a single precise dataset.

Government data
U.S. Bureau of Labor Statistics · 2024
OEWS, Computer User Support Specialists (SOC 15-1232)
https://www.bls.gov/oes/current/oes151232.htm
U.S. Census Bureau · 2022
County Business Patterns, Computer Facilities Management Services (NAICS 541513)
https://www.census.gov/programs-surveys/cbp.html
U.S. Small Business Administration · 2026
7(a) loan program & size standards
https://www.sba.gov/funding-programs/loans/7a-loans
U.S. Census Bureau · 2023
Business Dynamics Statistics, firm survival and exit rates
https://www.census.gov/programs-surveys/bds.html
Industry
CompTIA · 2024
Managed services and MSP industry benchmarks, per-seat pricing and recurring-revenue mix
https://www.comptia.org/
Service Leadership, a ConnectWise company · 2025
Annual IT Solution Provider Industry Profitability Report: MSP revenue and adjusted EBITDA growth, best-in-class profitability
https://www.globenewswire.com/fr/news-release/2025/05/08/3077333/27043/en/Service-Leadership-Announces-Findings-of-its-Annual-IT-Solution-Provider-Industry-Profitability-Report.html
Market & valuation
BizBuySell · 2026
IT and software services valuation benchmarks: SDE as a share of revenue and sale multiples for businesses sold 2021 to 2025
https://www.bizbuysell.com/learning-center/valuation-benchmarks/it-software-services/

This is just the surface

The full model is the complete, interactive deep-dive, and every business here is built to the same standard: a live economics simulator you tune to your own numbers, an interactive 3D walkthrough, a location scorecard, an owner-fit assessment, a buy-versus-build comparison, and the full breakdown of how it makes money and what quietly kills margin.

Monthly
$99 for your first 3 months

then $29 a month

Time to choose and start, then month to month.

$99 today for your first 3 months, then $29 a month until you cancel.

YearlyBest price
$199 a year

about $17 a month

The best price: a year to decide, open and run it.

$199 today, then $199 each year until you cancel.

Renews until you cancel. Cancel any time from your account; you keep access to the end of the period you paid for, and your saved plans stay in your account. What membership opens

smbnest is a self-assessment tool. It does not give individualized financial, investment, legal or tax advice. Figures are estimates and benchmarks, not forecasts. Speak with a qualified financial adviser and a licensed attorney before you start, buy, finance or sign anything.