From Owner to Employee: Navigating a New Role After Selling Your MSP

You’re selling your MSP business. Maybe you already have. Now what?

For some, the answer to this question is: relax on a beach, margarita in hand – or some version of that. And there’s nothing wrong with that! Selling your MSP business can be your ticket to a leisurely – and financially secure – retirement.

But what if you’re not ready to ride off into the sunset just yet? What if your passion for managed services still burns, and you want to continue working in the IT industry?

Nothing wrong with that either! Plenty of MSP owners have entered the mergers and acquisitions (M&A) space with no intention of retiring or even leaving the IT sector.

If you’re looking to sell your MSP but not exit the industry – or if you’ve already sold your company and now find yourself in a new role – you’ve come to the right place. In this article, we’re discussing how to make the most of your transition from owner to employee after the sale of your MSP business.

Our focus will be on situations where you join the team of the company acquiring yours. That said, if you’re pursuing a position elsewhere in the industry, a lot of the advice will still hold value.

Let’s jump right in!

Why Stick Around?

Let’s start with a basic question: Why do some MSP owners choose to sell their businesses without subsequently exiting the industry?

Here are some of the more common reasons…

Sweet Deal

Some MSP owners approach the table because they’ve found the ideal buyer – or an offer that’s simply too good to pass up – and not because they’re feeling burned out or ready for retirement. This isn’t uncommon, as the M&A market has once again heated up in 2024, with many interested buyers competing over high-performing MSPs.

All things being equal, it’s a great time to sell an MSP! If you play your cards right, you can make your exit with a big paycheck in hand.

Staying Alive

Some MSP owners strike deals because they’re thinking ahead and anticipating the difficulty of remaining competitive without adding new services, skills, etc.

According to Datto’s Global State of the MSP Report, for the third consecutive year, MSPs worldwide cited competition as their primary challenge, with 35% highlighting it, up from 29% in 2022. Finding a competitive edge is more crucial than ever, and consolidation offers ambitious MSP executives a promising route to securing an advantage by ‘leveling up’ their services, teams, and market reach.

Ready for Help

Finally, there are those MSP owners who are looking to sell because they’re tired – tired of running the show and having to wear all sorts of ‘hats’ just to keep their companies afloat. Some of these executives really enjoy a particular aspect of running an MSP (e.g., sales or operations), and want to focus on doing that one thing extremely well.

Selling offers these entrepreneurs a promising route to a more manageable work schedule, as well as a more specialized role that allows them to focus on what they enjoy doing and know how to do well. Come to think of it, becoming a member of The 20 helps with those things, too!

From Owner to Employee

Bottom line, there are plenty of good reasons to sell your MSP without the intention of retiring or even leaving the industry.

So, let’s get into the meat of our discussion: making a successful transition from an MSP owner to an MSP employee.

This blog post accompanies a short video featuring former MSP owners now thriving in new roles at The 20. Check out the video to hear their firsthand accounts of the transition “from owner to employee.”

What makes for a successful transition from MSP owner to MSP employee? Let’s start with a simple but illuminating answer:

If your plan is to keep going, you need to set yourself up to do exactly that – keep going.

Think about it. You’re not retiring. You’re not even changing industries. You’ve decided to remain a managed services professional, albeit in a new role. So, it’s important, for your own wellbeing – both professional and personal – to put yourself in a position that you find energizing and fulfilling. This is especially crucial if the reason you’re selling in the first place is fatigue, or even burnout.

But how do you do that? In practical terms, what is the best way to ensure that you find fulfillment in your new role?

After completing numerous MSP acquisitions (thirty-three at the time of this writing), we’ve witnessed plenty of MSP owners make the transition from owner to employee. Seeing their journeys has taught us a lot about what a successful transition involves.

And now we’re sharing key lessons with you…

Work Your Magic

After years spent running an MSP business, you probably have a pretty good idea of what you’re good at – and not so good at. You also likely know which aspects of the job bring you the most enjoyment.

In the short video, you’ll meet Gary Blawat, who loves MSP sales. You’ll also hear from Kevin Peterson, a self-proclaimed “operator at heart.” After selling their MSPs to The 20, Gary and Kevin took on new roles within the company which allowed them to focus on sales and operations respectively.

When pursuing a new position post-sale (and negotiating its terms), we recommend that you follow in Gary and Kevin’s footsteps and find a role that allows you to work your magic. Doing so will make a huge difference when it comes to staying motivated and engaged. Just ask Kevin:

“I’m able to focus most of my time on doing what I’m really good at and what I love doing. I get up every morning and I know I’m making a difference … I love what I’m doing.”

Shared Vision

Tim Knarr sold his MSP to The 20 back in 2022 and is now doing big things as our VP of Regional Operations. In the video. Tim talks about “the dream” of The 20 – the dream of the billion-dollar MSP. It’s a dream he believes in and feels connected to.

This brings us to another important point about securing satisfaction in your post-sale role: in addition to landing the right role, you’ll also want to join the right team.

More specifically, you should strive to become part of a team with goals and a long-term growth plan that excite you. You’re committed to sticking around after selling your MSP, so it only makes sense to join a company that’s not only going places, but places you want to go.

If you’re planning on working for the company that acquires your MSP, picking the right organization means picking the right buyer, and that begins with thoroughly vetting any potential buyer (for tips on vetting buyers and much more, make sure to download our free MSP acquisitions guide, “Sell Your MSP the Right Way”).

Invest to Stay Invested

Landing a role that lets you focus on what you like doing, joining a team whose vision you share – both of these things will help you remain engaged in your new role. But you know what will really help you stay invested?

Investing!

After selling your MSP, you can take a portion of the proceeds from the sale to purchase shares or equity in the acquiring company, giving you a vested interest in the combined entity’s success.

That’s a big part of our deal structure here at The 20. In the video, you’ll hear from Caleb Brown on the value of being a shareholder, and how it gives him a robust “sense of ownership with what we’re building now” – a national MSP with premium service delivery! It also doesn’t hurt that these owners-turned-shareholders will get a ‘second bite of the apple’ further down the line if and when The 20 gets acquired.

For a closer look at The 20’s approach to acquisitions and how it compares to some other prominent M&A players’ strategies, check out this excellent article from Channelholic.

Balancing Act

Perhaps the most profound observation from our interviews with MSP-owners-turned employees came from Michael Vu, who spoke about finding a healthier work/life balance after the sale of his MSP business.

Michael, like almost all of the MSP owners who sell to The 20, chose to remain on board in a new leadership position. He’s since discovered that he has, in his new role, a lot more time to spend with his family. Making room for family – for life – can be hard

when you’re captain of the ship. As Michael points out, “when you’re running your business from top to bottom, it takes ninety-nine percent of your energy and focus.”

Word to the wise: finding a more suitable work/life balance after selling your MSP can be easier said than done. After spending years at the helm of your company, you’ve likely grown accustomed to the perpetual grind. Just know that it can be difficult to adopt a new mindset once you’ve sold your MSP. However, doing so can work wonders for your overall wellbeing.

Remember, you did something special – you built and sold a company! Take time to savor your achievement, and be wary of falling back into the same relentless pace that defined your days as an owner.

Wrapping Up

Selling your MSP is a big decision – one of the biggest decisions you’ll ever make. It can also mean a transition to a new role. In our experience working with MSP owners who make this jump, it’s not so much stepping back as it is stepping up.

You’re stepping up to a new challenge. You’re seizing an opportunity to focus on what you’re good at and enjoy doing. You’re getting access to a larger team with better tools and processes to help your clients thrive.

This isn’t a demotion however you slice it. It’s the next chapter of your story, and it’s brimming with potential. So embrace your new role, because there’s a good chance the best is yet to come.

Need Some M&A Guidance?

If you’re thinking about selling your MSP or entering a merger, we’re here to help.

Check out our revamped guide to MSP acquisitions, “Sell Your MSP the Right Way” for practical advice and proven tips. Get your free download today.

Looking for direct feedback on your exit strategy? Set up a 1-hour call with Tim Conkle, Founder and CEO of The 20 and leading expert on MSP acquisitions.

Happy dealmaking!

The 20 MSP Broadens Reach with Latest Round of Acquisitions 

The 20 MSP bolsters national footprint with trio of new roll-ups. 

*** 

Full Press Release Here 

PLANO, TX, May 01, 2024 — 

Premier managed IT services provider, The 20 MSP, has announced the completion of three more MSP acquisitions. Joining The 20’s rapidly growing ranks are Tech Junkies (Kansas), Matrix Solutions (Mississippi), and Level 10 Technology (Kentucky & Tennessee). 

These acquisitions are the latest moves in an aggressive M&A plan that started in 2022 with a flurry of deals. Thirty-three acquisitions later, The 20’s extensive roll-up is well under way, and according to the company’s founder and CEO, Tim Conkle, there’s plenty more in the pipeline. 

“We have a large pool of MSPs interested in selling to The 20 – companies that belong to our membership-based growth platform, The 20 MSP Group, as well as MSPs that caught wind of our unique M&A approach and want in on the action,” Conkle shared. 

The 20’s consolidation strategy is unique in the extent to which it builds on pre-existing synergies, including shared tools and processes to ensure standardization and seamless scalability. 

“While it’s true we’re acquiring MSPs at a fast clip, there’s absolutely nothing rushed about our process,” Conkle said. “That’s because we prioritize alignment in our selection of acquisition targets. This is essential to the end game, which is of course building a truly national MSP with uniformly excellent service.” 

The 20 is well on its way toward achieving this goal, and it’s worth noting that almost all of the MSP owners who sell their companies to The 20 are sticking around the long haul, assuming leadership positions within the organization. This holds true for this latest round of deals, highlighting a key element in The 20’s approach. 

“We’re retaining not only leadership, but also employees,” Conkle explained. “That’s because we’re acquiring companies who share our long-term vision and are already lined up with our way of working. This means less friction, fewer unforeseen hiccups, and happier employees and clients. Our attrition rates are virtually non-existent with these deals.” 

As The 20 casts its net more widely to include non-member MSPs in its pool of acquisition candidates, it remains steadfast in its commitment to preserving standardization and operational unity. 

“Some MSP owners want to sell but still remain relatively independent, operationally speaking,” said Conkle. “That’s a viable approach, but it’s not ours. We’re building something big, and it’s vital that we’re all on the same page when it comes to the important things – processes, culture, and strategic vision.” 

The 20 is also giving MSP owners the opportunity to reinvest in the conglomerate, setting them up for a ‘second bite of the apple’ further down the line. 

“The MSP owners transitioning to new roles within our organization have skin in the game,” said Conkle. “These are highly motivated and engaged individuals, many of whom have been working together for multiple years within the context of our group. The camaraderie is unreal, and it keeps us on the right path as we continue to grow.” 

Pinecrest Capital Partners served as the exclusive financial advisor to The 20 MSP on the acquisitions. Texas-based Sunflower Bank, acting as sole lead arranger in a syndicated credit facility for The 20 MSP, provided the funding tranche. 

AI in the MSP Space

Part One: Helping Clients

A lot of MSPs have AI on the brain – and how could they not? The AI revolution is for real. And MSPs are uniquely positioned to ride the AI wave and to help their clients do the same.

But figuring out your MSP’s path forward is tricky. Things are unfolding in real time, and they’re unfolding at breakneck speed! If you’re looking for some guidance – some clarity amidst the chaos – you’ve come to the right place.

In this two-part blog (stay tuned for part two), we’re breaking down the state of AI in the MSP space. In this first installment, we’re looking at how MSPs can help clients harness AI effectively and responsibly. Part two will deal with the implementation of AI within your MSP business.

What to Expect (and Not to Expect) from These Articles

If you’re looking for a step-by step, foolproof AI implementation plan, sorry. We’re not withholding such a thing; it just doesn’t exist!

If you’ve been talking to other MSPs or perusing online forums, you’ll have noticed that MSPs are approaching AI very differently – and with very different attitudes. On one end of the spectrum, you have the gung-ho early adopters, and on the other end, you’ve got the skeptics and naysayers.

Most MSPs are somewhere in the middle, trying to make sense of things and chart a course forward. So if you’re excited about AI, but not sure what steps you should be taking, you’re not alone!

And while we can’t give your MSP all the answers in regard to AI adoption and implementation, we can point you in some promising directions, clarify the current lay of the land, and help you start formulating a strategy for your MSP business.

What Makes AI Different – and Right Up MSPs’ Alley

To begin, let’s talk about what makes AI special. It’ll be illuminating to compare it to a recent technological advancement: cloud computing. There are interesting similarities between cloud computing and AI, but we’re going to focus on a key difference:

The benefits and power of AI are obvious, self-evident even. The benefits and cloud computing are not.

As someone who works in IT, you know all too well that moving data to the cloud is, all things being equal, a good idea. You understand how cloud computing offers businesses a more scalable, agile, and cost-effective data storage solution. However, getting your clients to understand this and embrace the cloud is a whole different animal (which is why we have a blog post devoted to the topic).

With AI, the challenge is almost the inverse: clients are going to be eager to adopt AI, since the power of AI is so undeniable, so obvious. A lot of us had a similar experience using ChatGPT for the first time, OpenAI’s groundbreaking Large Language Model (LLM): This thing is incredible! The idea that businesses are going to embrace AI much more quickly and easily than cloud computing isn’t just speculation either:

ChatGPT was the first tech application to acquire 100 million distinct users in just two months. And get this: in a recent survey of 1,000 small business owners, an overwhelming 91% reported increased success following the implementation of AI.

Individuals and organizations will use tools that make their lives easier. Your job, then, as an MSP, isn’t going to be convincing clients to use AI, but rather, helping them do so responsibly, effectively, and efficiently. This brings us to…

MSPs as AI Guides

As an MSP you don’t just ‘fix your clients’ computers.’ You act as a trusted advisor, delivering strategic advice to help clients align their technology investments with their business goals.

If there were ever a perfect opportunity to prove your worth as an advisor, it’s in guiding clients through the adoption of AI technologies. In particular, MSPs should prepare to offer guidance in the following areas:

LLM ‘Tuning’ and Customization

LLMs are incredibly powerful and useful tools, but they’re not one-size-fits-all. The true power of an LLM is unleashed through what is known as “fine-tuning” or simply “tuning”: refining a pre-trained LLM’s capabilities and improving its overall performance by training it on smaller, specialized datasets (i.e., data specific to a client business).

Forward-thinking MSPs are going to master the art of tuning, so that they can equip their clients with LLMs that produce accurate, tone-appropriate content at the click of a few buttons.

But do organizations really need help with this?

Big time! A recent survey from Predibase polled executives, data scientists, developers, and other key decision makers and found that only 11% had successfully fine-tuned an LLM and been satisfied with the results. A whopping 78% had not, with 44% citing “complexity” or a “lack of knowledge” as the reason why. Did someone say, “Golden opportunity for MSPs”?

Data Security

AI introduces a host of new vulnerabilities and data privacy concerns. For instance, if a client is using an LLM, they need to make sure their data is properly organized and tagged.

This is where your MSP can come to the rescue – in helping your clients prepare their data for AI intervention. This means, among other things, structuring their data such that an LLM, or some other AI system, won’t reveal sensitive information to the wrong parties.

And you’d better believe clients are looking for help with data security in AI implementation. The aforementioned Predibase survey found that 33% of respondents listed “giving up access to proprietary data” as a top challenge preventing them from using LLMs in production. This was the most commonly listed top challenge, with second place going to “customization and fine-tuning” at 30%.

So if your MSP can help clients leverage and customize LLMs and other AI tools without compromising data security, it will help you stand out and your clients gain a competitive edge. Win-win!

Microsoft Copilot

Last November, Microsoft made its own AI-powered chatbot available to enterprise customers. Copilot is designed to help businesses enhance productivity and streamline workflows within the Microsoft 365 ecosystem.

MSPs stand to generate some serious revenue by guiding clients through the implementation and management of Copilot. Getting the most out of Microsoft’s new AI tool takes real work: creating a robust data strategy at the outset, ensuring security through proper access controls, and implementing safeguards for long-term maintenance.

But it’s the sort of work for which MSPs are perfectly suited. Learn more about Copilot and the unique opportunity it presents MSPs. Also, check out some of the cool things Zapier is doing with AI Copilot integrations.

The Human Element

AI adoption is a tricky business. There’s no way around that. The technology is new, powerful, and bursting with untapped potential. And because no two businesses share the exact same needs in regard to AI adoption, how well your MSP fulfills its role as trusted advisor will depend largely on one thing:

How well you know your clients’ businesses – how they operate, what they value, and what they’re trying to achieve.

The full force of AI as a business tool stems from the technology’s high level of adaptability and customizability. The only way to tailor an AI strategy to fit your clients’ specific needs is to understand those needs in the first place. Translation: talk to your clients! This isn’t something AI can do for you – not yet at least. It’s a human thing, and it’s crucial to your success as a trusted source of AI wisdom.

Conquer AI through Collaboration

The AI industry is exploding in size and complexity, and MSPs trying to figure things out for themselves have an uphill battle. But imagine being able to tap into the expertise and experiences of hundreds of MSPs, a whole community of companies who share knowledge and tips as freely as old friends trading tales around a campfire…

That’s exactly what it’s like to be a member of The 20 MSP Group. We’re stronger together, and we win together. To learn more about the powerful benefits we bring our MSP members, schedule a call today.

Thanks for reading, and stay tuned for part two, where we’ll look at how your MSP can leverage AI to improve operations and elevate service.

The 20 MSP Announces Triple Play in Strategic Acquisitions 

The 20 MSP closes three new MSP acquisitions, deepens national footprint. 

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Full press release here

PLANO, TX. March 1, 2024 – Leading managed IT services provider, The 20 MSP, today announced its completion of three MSP acquisitions, the latest round of deals in an ongoing M&A growth plan aimed at consolidating the company’s national footprint and enhancing its service offerings. 

The three managed service providers (MSPs) joining The 20 are Drivetech (Massachusetts; President – Bob Falco), Accurate Computer Solutions (Texas; CEO – Rodney Sees), and Blue Cactus Consulting (Arizona; CEO – Wayne Klug). 

As with The 20 MSP’s previous twenty-seven acquisitions, these three MSPs all achieved steady year-on-year growth as members of The 20 MSP Group. The group boasts 150+ MSP members, independent MSPs who leverage shared processes and resources, as well as economies of scale, to get ahead in the competitive managed IT services space and compete at parity with much larger companies. 

The addition of Drivetech, Accurate Computer Solutions, and Blue Cactus Consulting represents another decisive step forward in The 20 MSP’s ambitious growth plans, expanding its client base and deepening expertise across several key areas. 

The 20 MSP’s founder and CEO, Tim Conkle, commented on the significance of these latest deals. 

“With these deals closed, we now have thirty acquisitions under our belt,” Conkle said. “We’ve really hit our stride in terms of making these integrations seamless and minimally disruptive to end clients. As we get bigger and better, our collective knowledge base only gets stronger, so there’s more and more wisdom to draw on as far as making all the pieces fit,” added Conkle. 

The 20 MSP’s unique M&A approach has garnered plenty of industry attention, and as Conkle shared, blazing a trail is standard procedure for him and his team. 

“When I started The 20 MSP Group, I knew we were exploring new territory,” Conkle explained. “Now, we’re embracing the opportunity to once again break ground with our distinctive M&A process.” 

This distinctive process is marked by a commitment to acquiring MSPs that belong to The 20 MSP Group exclusively. As Conkle explained, this strategy capitalizes on the deep relationships The 20 MSP builds with acquisition targets during their time as members. “A lot of the attrition and friction that comes with traditional M&A deals is either minimized or altogether eliminated by our approach,” Conkle said. “So while the pace of our expansion has been rapid, it hasn’t felt rushed, since these integrations solidify partnerships that have been in the works, maturing organically within The 20 MSP Group.“ 

The 20 MSP has a full pipeline of acquisition candidates and more deals planned for the coming months. 

Pinecrest Capital Partners served as the exclusive financial advisor to The 20 MSP on the acquisitions. Texas-based Sunflower Bank, acting as sole lead arranger in a syndicated credit facility for The 20 MSP, provided the funding tranche.   

About The 20 MSP 

The 20 MSP has been helping businesses succeed through better technology since 1986. 

As a leading provider of managed IT services, The 20 MSP serves thousands of businesses nationwide, providing each one with white glove service, secure and streamlined IT infrastructure, and 24/7/365 support. We believe in building lasting relationships with clients founded on trust, communication, and the delivery of high-value services for a fair and predictable price. Our clients’ success is our success, and we are committed to helping each and every organization we serve leverage technology to secure a competitive advantage and achieve new growth. 

Business is better when IT runs smoothly.  

About The 20

The 20 is an exclusive consortium for Managed Service Providers (MSP) aimed at dominating and revolutionizing the IT industry with its standardized all-in-one approach. The 20’s robust RMM, PSA, and documentation platform ensures superior service for its MSPs’ clients utilizing their completely US-based Help Desk and Network Operations Center. Extending beyond proven tools and processes, The 20 touts a proven sales model, a community of industry-leading MSPs, and ultimate scalability. To learn more, visit the20.com.

Vendor Spotlight: Cytracom

Dive into the world of cutting-edge communication solutions with our latest Vendor Spotlight featuring Cytracom! Discover how Cytracom’s innovative VoIP and unified communications platform can revolutionize your business communication experience. Learn about their advanced features, seamless integration options, and unparalleled support.

1. What do you like most about being partnered with The 20? 

Members of The 20 are uniquely focused on standardizing on their platform and helping each other grow their business leveraging vendor partnerships and the best technology available in the channel. This fits perfectly with Cytracom’s mission to provide solutions that are always on the cutting-edge, easy to use, and built for MSPs to help them increase MRR without increasing service delivery overhead. 

2. Tell us what your company does in 2 sentences or less. 

Cytracom’s ControlOne is a next generation security solution built for MSPs, that addresses network security gaps that traditional hardware centric networking devices can’t handle. Our fully managed UCaaS platform delivers cloud-based voice plus mobility, desktop integration, messaging and more – simplified for small to midsize businesses. 

3. What’s your advice for MSPs in 2024? 

Don’t undervalue your time or services! Focus more on how you can help your clients efficiently run their business vs fixating on technology for the sake of doing so. Integrate everything you can into your managed services agreement to protect and grow your brand, and leverage vendor relationship that are leaning in to help you grow 

4. What sets your company apart in the competitive MSP vendor ecosystem? 

 We are a channel-only company and our solutions were built for MSPs. We were founded by a former MSP, and the majority of our leadership team has extensive experience in the MSP channel. This translates to Cytracom delivering innovative solutions that are tightly aligned with the business and growth goals of MSPs.  

5. Describe your approach to helping MSPs in 3 words. 

Empower, Enable, Support 

6. Fill in the blank: The best MSPs are usually the best at ______. 

Maintaining focus on their business and avoiding distractions, while balancing an open mind and fostering innovation. The best MSPs choose vendors who align with and support their business model, providing resources that directly help with growth and profitability of the business. The best owners work on the business more than they work in the business. 

7. What emerging technology or trend do you think will have the biggest impact on MSPs over the next 5 years? 

SASE and AI. SASE will render traditional networking tactics and centralized firewalls obsolete, finally bringing networking technologies in line with the rest of the world that has moved to cloud-based, virtual architectures for nearly everything.  AI will allow applications to be smarter and easier to use, and help drive efficiency in every area of businesses. 

8. How does your company stay innovative and adapt to the evolving needs of MSPs? 

We deeply value the relationships we form with our partners. Staying in tune with what’s happening requires an open mind and open ears, and we love to listen, and love to help. We also have a strong drive and ability to engineer solutions to problems, instilled in our DNA by our founder. Combining these two factors fuels Cytracom to deliver powerful solutions quickly, to move nimbly as technology changes, and to adapt to the evolving needs of our channel.  

9. What’s one valuable lesson partnering with The 20 has taught your organization? 

Never undervalue your services. Tim and the team do an amazing job pushing and encouraging its members to work hard, stay focused and take pride in the services and expertise you bring to your clients. It’s an inspiration to witness that guidance yield amazing results for the members.  

10. What’s your company’s spirit animal?

The eagle is a perfect representation of Cytracom’s mission. It represents freedom, strength, and vision. Cytracom delivers freedom to its MSP partners – freedom from stress in an ever-changing security environment, and freedom from support to end users. Strength provided by the new standard in network connectivity and security. And vision as we continually innovate on our solutions and adapt to the changing needs of the MSP. The eagle soars above the clouds with keen eyes and sharp focus, seeing clearly to make wise decisions, rise above the rest and achieve great things.  

Above and Beyond – How to Be a Surprisingly Good MSP

There are a lot of MSPs out here. No one knows the exact number, but recent estimates have put the figure at 150,000 globally and 40,000 in the U.S.

The M&A surge of recent years has led to rampant consolidation, so these numbers might have gone down, but don’t think for one second this means that competition has cooled off.

On the contrary, Datto’s Global State of the MSP Report found that, for the third year running, MSPs across all regions stated that their main challenge was competition – 35%, an increase from 29% in 2022. Finding a competitive edge is more crucial than ever. Find an edge, or get edged out.

If you’re a small to mid-sized MSP, it might feel as though you’ve got an uphill battle on your hands. With the emergence of ‘super MSPs’ – large platform MSPs formed by mergers and acquisitions – a new player has emerged, with capabilities and capacities that our industry hasn’t seen before.

But don’t worry – there’s still room for smaller MSPs to make an impact!

The same report from Datto found that revenue is up for MSPs across the board; most respondents saw a rise in revenue over the last year, with North America taking the lead in revenue expansion. Moreover, a significant portion of MSPs globally reported a revenue increase greater than 10%.

MSPs are growing, but with competition on the rise, standing out and winning new business takes (and will continue to take) innovation, adaptability, and above all else, a commitment to service excellence: to not just being a good MSP, but a surprisingly good MSP – an outstanding MSP.

That’s how we see things at least, and in this blog post, we’re sharing strategies and tips your MSP can use to stand out in a crowded field. These tips are all about being so good it will come as a pleasant surprise to any client who’s lucky enough to partner with your MSP business.

CX is King!

We’ve said this before. In fact, it’s the title of another blog post all about the importance of customer experience (CX) to your MSP’s success. And CX is important, make no mistake: Datto’s report found that “improve customer experience” was tied with “grow revenue” for the top strategic priority among MSP respondents in North America.

You’d better believe the MSP down the street is working hard to improve their customers’ experience, so let’s talk about the true key to CX mastery: your technicians.

When MSPs think about excellent CX, their minds often go to ‘the little things’ – those small, personal gestures that show your clients how much you care. While these are great – never underestimate the power of a handwritten note – a lot of MSPs go ‘above and beyond’ without first making sure things are ship-shape ‘below deck.’

Do you know what your customers want even more than a cool gift basket? Great service – fast, polite, helpful, proactive, professional, etc. And great service starts with your technicians. If you want happy clients, you need happy techs. Your processes and your personal gestures can never be so good that they’ll undo the damage done by rude or careless techs.

Building a team of techs who are ‘all-in’ on your MSP’s mission to provide out-of-this-world service delivery is an ongoing project. If you want techs who treat your clients like people – and not just sources of revenue – then it’s your job to treat your techs the exact same way. Model the behavior you want to see: check in on your techs, spend time with them on the front lines, talk to them about their lives, say THANK YOU and I APPRECIATE YOU – and mean it.

And if you have to fake it, you’ve already lost. If you don’t actually care about your techs as people, you’ve already lost. If you view your employees solely as means to your ends, you’ve already lost.

Pro Tip: Think about your vendor partners to bring clarity to your own CX efforts. Which vendors do you like working with? What do they do to secure your satisfaction and loyalty? Leverage these insights to shape your own CX approach.

Bonus Pro Tip: Think deeply about the KPIs your MSP uses to track technicians’ performance, as the right KPIs coupled with effective feedback loops can do absolute wonders for motivation. Think deeply about how your support desk is structured, too. Beyond the typical ‘three-tiered structure,’ there is an ocean of possibilities. Here at The 20, we recently revamped our entire support structure, and while we won’t spill details here, we will say it has helped us…

• Forge stronger relationships with end clients and with each other
• Achieve a more intimate and in-depth understanding of end clients’ IT environments
• Resolve clients’ issues faster and with less stress!

Surprise, Surprise

Brace yourself for an earth-shattering revelation: If you want to be surprisingly good, be…surprising!

In all seriousness, a tried-and-true strategy for standing out as an MSP is doing things that your customers weren’t expecting, but WILL love. This can be something simple like the aforementioned gift box or handwritten note, but an even more powerful surprise is something that brings real value to their business. Because let’s be honest, your clients didn’t hire your MSP to make them feel warm and fuzzy; they hired you to help them succeed as an organization.

Here are two ways you can wow your clients:

Tailored Training Sessions

Training sessions in general are a great way to demonstrate that you’re truly invested in your clients’ success. But even better are training sessions tailored specifically to their unique needs. Create a customized training session for a client based on your knowledge of their goals, IT environment, workflows, etc. This will work wonders.

Rockin’ Roadmaps

MSPs, in theory, are supposed to fuel their clients’ long-term success with forward-looking IT strategies (in practice, results may vary!). Creating a ‘technology roadmap’ for clients is a common practice, but in our experience, very few MSPs have mastered the art of roadmapping. A common mistake we see: not responding enough to clients’ perceived pain points (i.e., making the roadmap primarily or even exclusively about the projects and problems you think are important). Yes, you’re the technology expert, but your role as an MSP is to help clients achieve their goals.

Pro Tip: Use roadmaps to showcase your MSP’s intimate understanding of your client’s industry. A client likely won’t be wowed by the mere fact that you created a roadmap for them, but they will be wowed if that roadmap shows evidence that you’ve taken a deep dive into their industry, and thought deeply and strategically about their future success.

I Just Called to Say…

Your MSP should conduct QBRs and other scheduled check-ins with clients. However, every so often, surprise them with a spontaneous phone call to check in or follow up about an issue that your MSP resolved. If feasible, the occasional in-person visit can do wonders for maintaining strong personal connections. And don’t hesitate to sweeten the deal by bringing some coffee and donuts.

Good MSPs always check in and communicate with their clients when they have to (when it’s urgent, scheduled, etc.). Great MSPs check in when they have to, and every so often, ‘just because.’

That said, all of this advice should be filtered through nuanced judgment based on your personal relationships with clients. If your gut is telling you a client won’t appreciate something, take that intuition seriously. Your client relationships are exactly that – relationships – and while standardization is integral to success as a managed service provider, there will never be a one-size-fits-all template for keeping clients happy.

The 20 Helps MSPs Be Surprisingly Good

The 20 MSP Group consists of 150+ small and medium-sized independently owned MSPs who share knowledge and resources – including a 24/7 Help Desk/SOC and a battle-tested business model – to grow and scale faster and more easily than they ever could working alone. Running an MSP is a lot easier – and more fun – with The 20 at your side. Just ask Tom, Rocky, Scott, Seann, Bryan, or any of the other MSP owners who’ve joined our group.

Your MSP has the tech expertise. We understand the business side of things. Together, we can go far.

Schedule a call to find out if becoming a member of The 20 MSP Group makes sense for your MSP.

Head over to our homepage to learn more about The 20 MSP Group and how we help MSPs win.

Compliance Matters

How The 20 is Leading the Regulatory Charge

The importance of regulatory compliance for managed service providers (MSPs) has skyrocketed in recent years. In the early days of the managed IT services industry, an MSP’s primary role was that of technical caretaker; we keep your systems running smoothly with an eye to boosting your operational efficiency. Simple enough.

But the rise of cyberattacks – and their subsequent evolution into a pervasive existential threat for businesses of all sizes – led to an explosion of new standards and increasing regulatory complexity. First came the Sarbanes-Oxley Act in 2022, and following quickly on its heels were PCI DSS (2004) and the Gramm-Leach-Bliley Act (2005). More recently, SOC 2, GDPR, and CCPA have emerged as crucial compliance frameworks.

To put this in perspective, if the U.S. regulatory industry were a country, it would be the world’s eighth-largest economy!

One consequence of the ‘regulation revolution’ was the rapid expansion of the role of MSPs to encompass compliance management, a responsibility that requires a thorough understanding of the security landscape, industry-specific regulatory requirements, and risk management more broadly.

This has been nothing short of a paradigm shift; some MSPs have been left behind, while others have adapted with gusto.

Here at The 20, we’re proud to say that we firmly belong to the latter category. We are ‘all in’ on compliance and it’s for one very simple reason:

Compliance and security go hand-in-hand (learn more).

Security requires compliance and compliance requires security, which is why we’ve kept our nose to the grindstone on the regulatory front, achieving significant compliance milestones for The 20, while helping our MSP members and their end clients in their efforts to remain compliant and secure.

Let’s take a look at where The 20 is in its compliance journey – as well as what’s ahead on the regulatory front.

The 20 is SOC 2 Compliant!

To begin, we want to share a major milestone our organization recently reached – The 20 is now SOC 2 Type II compliant!

After completing a stringent 3rd-party audit, we received a resoundingly positive report and unqualified opinion. Translation: we now have robust 3rd-party validation that our security processes and controls all meet or surpass standards established by the American Institute of Certified Public Accountants (AICPA).

This is a big deal, as very few MSPs are SOC 2 Type II compliant (< 5% according to several sources). More importantly, this attestation reinforces our pledge to clients (and prospective clients):

Your data isn’t just a priority; it’s a sacred trust.

Read the full press release for more details on our SOC 2 Type II compliance.

Compliance: Streamlined & Simplified

MSPs that become members of The 20 MSP Group – our growth platform for MSPs looking for help conquering the ‘business side’ of things – get access to a variety of tools and processes that unlock new growth. Among these business-boosting assets is comprehensive compliance management.

In fact, at the time of this writing, The 20 is engaged in helping 11 different MSPs achieve compliance with 4 different regulatory frameworks, including HIPAA, CMMC 2.0, and GLBA Safeguards. What gives us this kind of bandwidth?

In a word, we’re able to do more than the average MSP because we (a) make compliance a priority, and (b) enlist a cutting-edge cybersecurity and compliance management platform to make compliance projects easier, less stressful, and more reliable for both the MSPs we serve and their end clients. Forget about cumbersome spreadsheets and say hello to the future of compliance management:

• AI-driven recommendations
• Framework crosswalking (mapping one set of standards, regulations, or frameworks to another to reduce redundancies and identify commonalities and gaps between different sets of requirements)
• Tasking automation
• True multi-tenancy and persona-specific reporting

But let’s cut through the jargon and talk about the real benefits of our sophisticated approach to compliance management.

Simply put, the main impediment to successful compliance programs is communication – or miscommunication rather. Achieving a particular compliance standard is a huge undertaking, requiring myriad information exchanges between separate parties. Hunting down relevant information, reporting the successful completion of tasks, and ensuring that everyone is on the same page can get overwhelming – fast!

In fact, among corporate risk and compliance professionals, nearly two-thirds (65%) said leveraging technology to streamline and automate manual processes would help reduce the complexity and cost of risk and compliance management. And yet, 60% of GRC users (individuals responsible for overseeing compliance and risk management within an organization) continue to manage compliance manually with spreadsheets! There’s a lag—and it’s costing organizations precious time and resources.

Our approach to compliance management provides MSPs and their clients with a comprehensive framework for all of their compliance needs. You don’t have to waste time manually organizing data, requesting tasks, and documenting updates. You don’t have to perform complex calculations to determine how much progress you’ve made on a specific standard. With The 20’s help, you can automate huge portions of any given compliance program, keep everything organized and accessible (by authorized parties), and report your compliance posture with ease.

And we’d be remiss not to mention how much these capabilities impress potential clients, especially organizations in the defense, healthcare, legal, and other industries where compliance is fundamental. If you’re an MSP and you’re making a bid to a government contractor who works directly with the DoD, you’d better believe they’ll want to see evidence that you’re capable of navigating complex compliance challenges like a true pro.

Why Compliance Matters

Compliance has a lot of ‘strategic value.’ It demonstrates operational maturity and can provide a competitive edge. We mentioned how a robust compliance posture can help an MSP win clients in industries where data protection is paramount. Simply put, regulatory prowess is a powerful differentiator. But these considerations are secondary to the one undeniable reason why compliance matters:

Compliance matters because security matters. It’s really that simple.

But can’t organizations secure their systems without jumping through regulatory hoops?

In theory, yes. But in practice? Let’s just say there’s a reason even the most experienced airline pilots must meticulously go through checklists before taking off. Could most pilots perform the necessary tasks without the checklist, relying on memory alone? Sure. But the operative word here is probably. When the stakes are as high as the safety of several hundred passengers, ‘probably’ just doesn’t cut it.

And you’d better believe the stakes are sky-high when it comes to protecting data and preventing it from falling into the wrong hands. Cyberattacks are extremely costly, and data shows that they’re only getting costlier; last year the average cost of a data breach ($4.45M) reached an all-time high. Moreover, we’re not talking about individual pilots here, but entire organizations. Compliance frameworks help leadership ensure that best practices and robust controls are being used across the board.

Bottom line – unless there is a dramatic shift in the threat landscape, regulatory requirements are only getting more complex and demanding. The time for your MSP to start proactively developing a sophisticated compliance program was yesterday.

Cool Links

Are you a business looking to partner with an MSP with compliance expertise?

Check out The 20 MSP or schedule a call.

Are you an MSP struggling with compliance, or simply looking for help streamlining and automating compliance management?

Check out The 20 MSP Group or schedule a call.

Thanks for reading!

The 20 MSP Continues M&A Push with Latest Acquisition 

The 20 MSP welcomes Data Tech Café to growing ranks, sets tone for another year of rapid expansion. 

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PLANO, TX. Feb. 1, 2024 – Leading managed IT services provider, The 20 MSP, today announced its latest strategic acquisition and the company’s first deal of the year. 

The 20 MSP has finalized its acquisition of the managed IT services division of Data Tech Café, a premier IT services and consulting company that achieved meteoric growth as a member of The 20’s membership-based growth platform, The 20 MSP Group. 

Data Tech Café is headquartered in Detroit, Michigan, but serves clients in multiple states, having grown its footprint through a strategy that emphasizes service excellence, cybersecurity prowess, and business-savvy solutions that bring lasting value to client organizations.  

While Data Tech Café experienced growth and success prior to joining The 20 MSP Group, The 20’s business model helped the Michigan-based organization reach new heights and emerge as a major player in the managed services landscape. 

Data Tech Café’s remarkable evolution as a member of The 20 MSP Group culminated in the MSP being honored with the prestigious “MSP of the Year” award last year at The 20’s annual VISION event. 

The 20’s leadership is delighted to welcome such an established and accomplished MSP to its ranks, and is working to retain top talent, including key members of Data Tech Café’s executive team. 

“Data Tech Café has been on an incredible growth journey since joining our group,” shared Tim Conkle, The 20’s founder and CEO. “Watching them mature and evolve has been hugely inspiring, and we’re all looking forward to getting inspired all over again by the great things we’ll accomplish together.”  

The 20’s M&A journey began in 2022 with a flurry of MSP acquisitions. Now, twenty-seven acquisitions later, The 20 is well on its way to building an enduring national footprint. Conkle largely credits The 20’s successful M&A run to the company’s unique consolidation strategy, which involves acquiring MSPs exclusively from The 20 MSP Group. This approach facilitates seamless integrations and robust cultural compatibility, while also mitigating risk. 

“We don’t have to deal with the turbulence that accompanies most acquisitions,” remarked Conkle. “We learn to work closely with the MSPs we acquire long before any deals are brought to the table. This makes things easier on us, easier on them, and easier on our clients. The plan is to stick with what works, and what allows us to continue bringing our brand of managed and co-managed IT services to organizations that could use our help.”  

Pinecrest Capital Partners served as the exclusive financial advisor to The 20 MSP on the acquisition and associated financing. The 20 has more acquisitions lined up in the coming months. 

About The 20 MSP 

The 20 MSP has been helping businesses succeed through better technology since 1986. 

As a leading provider of managed IT services, The 20 MSP serves thousands of businesses nationwide, providing each one with white glove service, secure and streamlined IT infrastructure, and 24/7/365 support. We believe in building lasting relationships with clients founded on trust, communication, and the delivery of high-value services for a fair and predictable price. Our clients’ success is our success, and we are committed to helping each and every organization we serve leverage technology to secure a competitive advantage and achieve new growth. 

Business is better when IT runs smoothly.