Northland Tech Solutions - Business Plan
Executive Summary
Northland Tech Solutions (NTS) is a Kansas City-based Managed Service Provider and Low Voltage Contractor targeting small-to-medium businesses with right-sized, cost-effective IT solutions. We differentiate through custom-tailored infrastructure, bare metal alternatives to cloud overhead, and bundled IT + cabling services that larger competitors ignore.
Mission: Deliver enterprise-grade IT reliability to local businesses at SMB prices, with genuine partnership instead of ticket-clearing.
Key Differentiators:
- Custom architecture vs. cookie-cutter solutions
- Right-sized bare metal vs. expensive cloud overhead
- Low voltage + IT bundled (unique combination)
- Local, relationship-driven vs. corporate/franchise
Business Model
Revenue Streams
| Stream | Model | Margin | Notes |
|---|---|---|---|
| MSP Contracts | Monthly recurring | 50-70% | Core business, predictable |
| Low Voltage | Project-based | 35-50% | Cash flow, entry point |
| Hourly/Break-Fix | Time & Materials | 60-75% | Transitional, declining |
| Hardware Sales | Markup | 15-25% | Bundled with services |
| VPS/Hosting | Monthly + markup | 40-60% | Passive income |
| Project Work | Fixed bid or T&M | 45-60% | Migrations, buildouts |
Service Portfolio
Tier 1: Managed IT (MSP)
- Unlimited remote support
- Network monitoring & management
- Patch management & updates
- Backup & disaster recovery
- Security baseline (AV, firewall)
- Vendor management
- Strategic IT planning (vCIO)
Tier 2: Security Add-On
- Advanced threat protection
- Security awareness training
- Dark web monitoring
- Compliance assistance (HIPAA, PCI)
- Incident response
Tier 3: Low Voltage Services
- Structured cabling (Cat6/6a)
- Fiber optic installation
- Network rack buildouts
- Patch panel termination
- Cable testing & certification
- Datacenter cabling (subcontract)
Tier 4: Projects & Consulting
- Cloud migrations
- Server deployments
- Network redesigns
- Office moves/buildouts
- Technology assessments
Market Opportunity
Target Market Size (KC Metro)
| Segment | Businesses | Serviceable | Target (Y1) |
|---|---|---|---|
| 5-25 employees | 18,000 | 8,000 | 15-25 |
| 26-100 employees | 4,500 | 2,000 | 5-10 |
| Low Voltage Projects | — | 200/year | 20-30 |
Why Now
- Cybersecurity Fear: Ransomware in the news, SMBs scared
- Cloud Fatigue: Costs exploding, repatriation interest
- Datacenter Boom: KC area seeing major construction
- Post-Pandemic: Remote work complexity sustained
- MSP Consolidation: Big players ignoring small clients
- AI Opportunity: SMBs need guidance on adoption
Competitive Strategy
Positioning
HIGH SERVICE
│
Enterprise MSPs │ ★ NTS
(Overpriced) │ (Right-Sized)
│
GENERIC ─────────────────┼─────────────── CUSTOM
│
Franchise MSPs │ Solo Consultants
(Cookie-Cutter) │ (Unreliable)
│
LOW SERVICE
Competitive Advantages
| Advantage | How We Deliver |
|---|---|
| Cost Efficiency | Bare metal, right-sized solutions |
| Bundled Services | IT + Low Voltage = single vendor |
| Local Focus | KC-based, relationship-driven |
| Flexibility | Custom packages, not tiers-only |
| Technical Depth | Real solutions, not ticket clearing |
| Response Time | Small client list = fast response |
Against Specific Competitors
| Competitor | Their Weakness | Our Attack |
|---|---|---|
| Large MSPs | Ignore small clients, expensive | ”Enterprise quality, SMB price” |
| Franchise MSPs | Cookie-cutter, no customization | ”Custom architecture” |
| Solo Consultants | Unreliable, no depth | ”Team coverage, SLAs” |
| In-House IT | Expensive, single point of failure | ”Fractional IT team” |
Go-to-Market Strategy
Phase 1: Establish (Months 1-6)
Primary Focus: Low voltage cabling Secondary: First MSP clients from network
Activities:
- Launch website with credibility signals
- LinkedIn presence established
- Google Business Profile optimized
- Join one networking group (BNI/Chamber)
- Pursue 2-3 low voltage subcontracting relationships
- Land first 3-5 MSP clients (friends/referrals)
Goal: $4-6K/month revenue, validate offering
Phase 2: Build (Months 7-12)
Primary Focus: MSP client acquisition Secondary: Larger low voltage projects
Activities:
- Google Ads campaign (IT support KC)
- First case studies published
- Referral partnerships (CPA, attorney)
- Client portal operational
- First technician hire evaluation
Goal: $10-15K/month revenue, 10+ MSP clients
Phase 3: Scale (Year 2)
Primary Focus: Team building, efficiency Secondary: Cybersecurity specialty
Activities:
- Hire first full-time technician
- Add security service tier
- Pursue first datacenter cabling contract
- Consider partner/acquisition opportunities
- Formal office/warehouse space
Goal: $25-35K/month revenue, 25+ clients
Sales Strategy
Lead Sources (Prioritized)
- Referrals — existing clients, partners, network
- LinkedIn Outreach — targeted local business owners
- Google Ads — “IT support Kansas City” etc.
- Networking Events — BNI, chamber, industry groups
- Website/SEO — long-term organic traffic
- Partner Referrals — CPAs, attorneys, realtors
Sales Process
Discovery Call (15 min)
│
▼
Network Assessment (on-site, 1-2 hrs)
│
▼
Proposal Presentation (30 min)
│
▼
Contract & Onboarding (1-2 weeks)
Pricing Strategy
| Client Size | Monthly | Annual Value |
|---|---|---|
| 1-10 users | $500-1,000 | $6,000-12,000 |
| 11-25 users | $1,500-3,000 | $18,000-36,000 |
| 26-50 users | $3,500-6,500 | $42,000-78,000 |
| 51-100 users | Custom | $75,000-150,000 |
Value Proposition:
- Full-time IT employee: $60-80K + benefits
- NTS for same coverage: $18-36K/year
- Savings: 50-70% with better coverage
Operations
Service Delivery
Remote Support:
- RMM tool (TBD: Datto, NinjaOne, Syncro)
- PSA/Ticketing (custom-built in portal)
- 8-hour SLA response
- 24-hour resolution target
On-Site Support:
- Scheduled maintenance visits
- Emergency response (4-hour target)
- Project work (scheduled)
Low Voltage:
- Project estimation (detailed BOQ)
- Material procurement
- Installation & testing
- Documentation & handoff
Technology Stack
| Function | Tool |
|---|---|
| RMM | TBD (NinjaOne, Datto, Syncro) |
| PSA/Ticketing | Custom (Prisma + Next.js) |
| Documentation | IT Glue or Hudu |
| Remote Access | TeamViewer or Splashtop |
| Backup | Veeam or Datto |
| Security | SentinelOne or Huntress |
| Microsoft 365 |
Client Portal Features
- Secure login (NextAuth/Clerk)
- Ticket submission & tracking
- SLA dashboard
- Invoice/billing history
- Knowledge base access
- Service status monitoring
- Asset inventory view
Financial Projections
Startup Costs
| Item | Cost | Notes |
|---|---|---|
| Website Development | $0-500 | Self-built |
| RMM/PSA Tools | $100-300/mo | Scales with clients |
| Insurance (E&O + Liability) | $2,000-4,000/yr | Required |
| Low Voltage Tools | $1,500-3,000 | Basic kit |
| Vehicle | $0 | Use personal initially |
| Marketing (initial) | $1,000-2,000 | Website, cards, initial ads |
| Legal/Entity Setup | $500-1,000 | LLC, contracts |
| Total Startup | $5,000-10,000 | Conservative |
Monthly Operating Costs (Steady State)
| Expense | Amount | Notes |
|---|---|---|
| Insurance | $250-400 | E&O + General |
| RMM/Tools | $200-500 | Scales with users |
| Vehicle/Fuel | $300-500 | On-site visits |
| Phone/Internet | $150-200 | Business lines |
| Marketing | $300-500 | Google Ads, networking |
| Professional Services | $100-200 | Accounting, legal |
| Miscellaneous | $200-300 | Supplies, tools |
| Total Monthly | $1,500-2,600 | Before payroll |
Revenue Projections
Year 1:
| Quarter | MSP MRR | Low Voltage | Hourly | Total |
|---|---|---|---|---|
| Q1 | $1,500 | $6,000 | $1,000 | $8,500 |
| Q2 | $4,000 | $12,000 | $2,000 | $18,000 |
| Q3 | $7,000 | $15,000 | $2,000 | $24,000 |
| Q4 | $11,000 | $15,000 | $2,000 | $28,000 |
| Year 1 | $23,500 | $48,000 | $7,000 | $78,500 |
Year 2: 350,000-500,000
Profitability Target
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $78K | $200K | $400K |
| Gross Margin | 55% | 58% | 62% |
| Net Margin | 15% | 22% | 28% |
| Owner Draw | $12K | $44K | $112K |
Risk Assessment
| Risk | Likelihood | Impact | Mitigation |
|---|---|---|---|
| Slow client acquisition | Medium | High | Low voltage cash flow, low overhead |
| Client concentration | High (early) | High | Diversify quickly, cap at 20% |
| Competition undercuts | Medium | Medium | Differentiate on service, not price |
| Technician needed too soon | Medium | Medium | Contract/1099 first |
| Major client loss | Low | High | SLAs, relationship management |
| Cybersecurity incident | Low | Very High | Insurance, incident response plan |
| Cash flow gaps | Medium | High | Low voltage projects, retainer deposits |
Success Metrics
Year 1 KPIs
| Metric | Target |
|---|---|
| MSP Clients | 10-15 |
| Monthly Recurring Revenue | $10,000 |
| Low Voltage Projects | 20-30 |
| Client Retention | 90%+ |
| Average Response Time | <4 hours |
| Client Satisfaction (NPS) | 50+ |
| Website Leads/Month | 5-10 |
Year 2 KPIs
| Metric | Target |
|---|---|
| MSP Clients | 25-35 |
| Monthly Recurring Revenue | $25,000 |
| First Technician Hired | Y |
| Security Clients | 10+ |
| Referral Rate | 30%+ of new business |
Team & Growth
Current
Owner/Founder:
- Technical delivery
- Sales & marketing
- Operations & admin
Year 1 Additions
- Contract Technician (as needed) — $35-50/hr
- Bookkeeper (part-time) — $300-500/mo
Year 2 Additions
- Full-Time Technician — $50-65K/yr
- Part-Time Admin/Dispatcher — $18-22/hr
Year 3+ Vision
- 2-3 technicians
- Dedicated sales role
- Operations manager
- Consider partner/investor for acceleration
Next Actions
Immediate (This Week)
- Finalize LLC paperwork
- Get insurance quotes
- Order basic low voltage tools
- Launch website (MVP)
Short-Term (30 Days)
- Google Business Profile live
- LinkedIn profile optimized
- First networking event attended
- 3 low voltage quote requests
- First MSP prospect meeting
Medium-Term (90 Days)
- First paying MSP client
- First low voltage project completed
- 3 case studies drafted
- Google Ads campaign live
- One referral partnership established