MSP Process: 4 Finer Points

You hear it a lot: The best MSPs are “process-driven.” Success in the managed services industry takes more than talent and hard work; it takes process. Process is king! And so on and so forth…

The ‘P-word’ is an important one in the MSP space, but like a lot of business jargon, we tend to use it freely, casually, without giving too much thought to its meaning. This is a shame, and in the case of “process,” a major shame, because the topic truly is endlessly interesting.

In this article, we’re shedding light on some of the subtler, finer points associated with process. The goal is to help MSP owners understand the importance of process not only more clearly, but on a deeper level, too.

This discussion is aimed at the ‘thinking MSP owner’ – one who knows that being process-driven is about a lot more than following SOPs and maintaining documentation. So, without further ado, here are four surprising observations that just might give you a fresh perspective on what it means to be a process-driven MSP – and what it takes, too.

Finer Point #1: Great processes can look & feel WEIRD.

What’s a process? It’s a way of carrying out a particular task. It has steps. It’s well-defined. It tells you what to do, as well as when and how to do it. For MSPs, processes are particularly key in areas like ticket management, client onboarding, incident response, network monitoring, and regular maintenance tasks.

Processes are supposed to make things go smoothly and efficiently – but this masks an important truth about truly great, truly innovative processes: they can (at least at first) look and feel weird.

History is littered with examples of strange-seeming processes outperforming the norm – or even replacing it as the gold standard. From Tetris to free throws, progress often comes on the heels of daringly different approaches. Perhaps the clearest example of this comes from track and field…

Before 1964, high jumpers cleared the bar with a kind of scissors-kick motion; then Dick Fosbury came up with a new way – a better way – of jumping. His novel technique, which came to be known as the “Fosbury flop,” looked pretty funny at first. One reporter wrote that Fosbury resembled a “fish flopping in a boat.” But the American athlete’s awkward-looking method worked, and the last time an Olympic high jumper did NOT use it was over fifty years ago.

It just goes to show – sometimes you need to be willing to look silly to reach new heights. So ask yourself: Is there something my MSP could be doing better – faster, more efficiently, more thoroughly, etc. – that we’re currently resisting (or not even considering) because it seems ‘weird’?

The answer’s almost surely ‘yes.’ Your job, then – and your team’s job – is to (a) find out what that something is, and (b) find the courage to take the leap, however strange it may look to others.

Finer Point #2: Innovation in process can feel like a step backward.

Once again the world of sports provides us with an illuminating lesson on the nature of process.

This time we turn to golf – and to arguably the greatest golfer of all time: Tiger Woods. After winning the 1997 Masters in convincing fashion, Woods did something no one was expecting: he took apart his swing and rebuilt it from the ground up.

His old swing worked better than well – it got him the Green Jacket! But it could be better. That was the point – it could be better. So, Tiger did the opposite of what conventional wisdom tells us and proceeded to fix what wasn’t, strictly speaking, broken.

After retooling his entire swing under his coach at the time, Butch Harmon, Woods struggled for a bit – for two years, in fact. His body wasn’t used to the new motion, but he persisted, and in 1999, he called up Harmon with some good news: “Butchie,” Tiger said, “I got it.” And so began a 7-year period of utter dominance, during which Woods would make 142 consecutive cuts, a towering record in golf that remains unbroken.

The lesson here is clear: sometimes – oftentimes – implementing a new process, no matter how good it is, will involve an initial period of difficulty.

It’s called adjustment. If your people are used to doing things one way, you can’t expect them to seamlessly adopt a whole new way of doing things just like that. The road to progress isn’t linear, and it requires unlearning old habits as much as learning new skills.

So, when it comes to implementing new processes at your MSP, be patient, and accept that mistakes will happen. The key is responding to them appropriately – as opportunities to learn and refine, not blame and punish. Capisce?

Finer Point #3: Process without feedback is practically useless.

Processes aren’t good on their own. They need something else: intelligent oversight and consistent feedback. Let’s focus on the latter, and why it’s indispensable.

The overarching reason feedback and process go hand in hand is a simple one: not all processes are created equal. In fact, some processes suck. Feedback, then, is the tool by which we make our processes better. But feedback, to truly drive continuous improvement, has to be – you guessed it – continuous.

Curious to know how we ensure that regular feedback drives continuous process refinement and operational improvements here at The 20? Here’s a peek behind the curtain:

At The 20, we approach building a culture of continuous improvement in this way. We start with “the basics” – everyday tasks and core processes that drive the business. We document these tasks and use critical thinking to identify and eliminate (or at least minimize) inefficiencies. Once we’ve clearly mastered these basics (as defined by a set of carefully chosen metrics), we introduce more complex, strategic initiatives, with the goal of integrating them into our regular operations.

As these complex initiatives become part of the “basics,” we continue the cycle by introducing new, even more ambitious strategies and projects. This ongoing process ensures that what was once challenging becomes routine, and the cycle of improvement never stops, driving sustained growth and success for our MSP – and the MSPs in our membership group.

It works for us, and we know it’ll work for your MSP, too. Oh, and if you were wondering, Tiger Woods didn’t just reinvent his swing once, but three separate times! Continuous improvement, folks – that’s what long-term success is all about.

#4: The purpose of process isn’t to think less, but think more – and better!

When you hear “process-driven,” your mind might go to the idea of automating everything and thinking less. But in reality, the purpose of process is to free up mental space for better, more strategic thinking.

By creating structured workflows and standardizing tasks, you remove unnecessary guesswork, allowing your team to focus on problem-solving and innovation. In this way, a well-defined process doesn’t reduce thought – it enhances it, enabling more thoughtful, directed decision-making.

Here at The 20, we believe strongly in the power of making easy things easy, to free up time, energy, and resources for the hard stuff: solving complex client issues, improving security protocols, refining service delivery, driving long-term strategic growth – and so on.

That’s why our US-based 24/7 support desk can take on as much as 90% of your tickets, freeing you and your team up to tackle higher-value projects and initiatives. With our proven processes in place, you can throw yourself into the hard stuff, which is also the fun stuff – and the stuff that leads to real growth.

Let’s connect!

If you want to find out more about The 20 – who we are and how we help MSPs grow – fill out this short form and we’ll be in touch. We’d love to hear more about your MSP business – as well as discuss our model and membership requirements in more depth.

If you enjoyed this discussion and are hungry for more MSP wisdom, head over to our blog – there are plenty of articles to choose from. Happy reading!

MSP Acquisition Spotlight – Michael Wayland

1. What’s it like not being your own boss anymore? Did that take some getting used to?

It was certainly an adjustment at first. I joke that I traded my 80-hour-a-week job for a 50-hour-a-week one. I’m not sitting back and relaxing, but I do have a lot more time for hobbies I haven’t been able to enjoy for years. One big adjustment is that, when you’re used to making all the decisions, it’s different to step back and collaborate within a larger structure. But in a way, it’s also a relief—I can focus on my strengths and trust others to handle theirs. It’s all about finding that balance and embracing the change.

2. Selling your MSP is a big decision. Where did you go for guidance and advice?

First and foremost, it was a conversation with my wife about how the change would affect our family. Then I spoke with a mix of mentors, industry peers, my attorney, and my CPA. It was important to get advice from people who’d been through it, so I wasn’t flying blind. I also leaned on legal and financial experts to ensure every angle was covered.

3. How difficult was it to find the right buyer? What made you choose The 20 MSP in the end?

At the time, I was not in the market to sell my MSP. In fact, I had just experienced my own acquisition falling through at the closing table. It was challenging, no doubt. You want to ensure you’re leaving your company in good hands—not just financially, but for your team and clients as well. The 20 MSP felt like the right fit because of their reputation, the history my clients and I already had with them, and the culture they’ve built. It wasn’t just about the numbers; it was about where the business could grow from there.

4. How did you approach sharing your M&A plans with your team and clients? Were you surprised by any of their reactions?

For some clients, I made sure to communicate openly and early; for others, I informed them in person after we closed. I let my team know a little over a month before the scheduled closing date. Transparency was key—I wanted everyone to know they’d still be taken care of. Reactions varied: some were nervous, some excited, but overall, there was a lot of support. People appreciate honesty, and I believe that went a long way.

5.  What’s changed the most in your life since selling your MSP?

The biggest change for me has been the pace, variety, and type of work I do. It is nice to be able to focus and improve and get better at a smaller subset of tasks and skills.

6. Since selling your MSP, is there something – inside or outside of work – that you’ve been able to focus on more?

It has been nice to be able to pick up some of my hobbies again. I’ve managed to actually complete several games since Roll-Up. Also, knowing that when you do take a break on the weekend or on vacation I can actually shut my brain off and not worry about what is going on with the clients back at the office, that has been one of my favorite benefits so far.

7. What’s your best advice for someone thinking about selling their MSP?

Make sure you’re mentally ready for the change, not just financially. It’s a big shift, and you need to think about what’s next for you personally, not just for the business. And get good advisors—they’re worth their weight in gold.

8. Can you talk about your current role? How has your day-to-day changed since selling your company?

My current role is primarily as the Director of Managed Websites. I helped develop and build the new department and manage the day-to-day operations, including ongoing projects, maintenance, and ticket requests. In addition, I assist with some internal automations and tools.

9. In your opinion, what’s the most important quality for success?

Grit and perseverance with some humility and a desire to never stop learning.

10. What’s something most people don’t know about you?

I started college at the age of 15. Every year, I serve as a judge for the Mensa Mind Games Selection Committee, where I spend three days, 12–16 hours a day, playing new and pre-release tabletop board games to grade and select the three “best.”

11. Describe your dream vacation in 3 words…

Wood-Cabin, Coffee, Wife.

MSP Tough Talk: 11 Hard Truths

There’s what you want to hear, and there’s what you need to hear – and the two don’t always line up. But if you’re striving to grow a successful MSP business – to get ahead in this ultra-competitive industry – the stakes are too high to skimp on the truth. So we’re not.

We’ve compiled 11 heavy-hitting but essential hard truths to help you shatter those persistent barriers to your MSP’s growth.

So put on your thick skin, check your ego at the door, and let’s face the facts.

Hard Truth #1: You’re Going to Make Mistakes

Here at The 20, we talk a lot about making things easier for MSP owners – heck, it’s the entire purpose of our peer group and revolutionary business model. But this doesn’t change the fact that real growth means screwing up sometimes.

It’s true – the path to success is never error-free. Building a large, profitable MSP business means taking risks, and mistakes will happen. In the MSP space, what separates ‘the best’ from ‘the rest’ isn’t the ability to avoid mistakes altogether; it’s the ability to learn from them and keep moving forward. Remember, mistakes aren’t failures; they’re stepping stones to success.

Hard Truth #2: Saying No Is Fundamental

In an MSP’s early days of growth, every new client feels like a windfall, and saying yes can become a reflex. But success in the MSP industry – and in any industry for that matter – requires knowing when to say no. This might mean turning down an unreasonable client demand or choosing not to work with a difficult client. We’ve seen too many MSP owners run themselves – and their companies – into the ground by saying yes to everything. Don’t make the same mistake!

Hard Truth #3: Not All Business Is Good for Business

Although a specific instance of knowing when to say no, the following hard truth is so important, it deserves to be highlighted specifically: Not every client is worth keeping.

In fact, knowing when it’s time to ‘break up’ with a client is an invaluable skill for MSP leaders. That’s because not every client is worth holding onto – especially those clients who drain your time, resources, or morale. It’s easy to fall into the trap of thinking that every client is essential, but sometimes, cutting ties with the wrong ones is the best decision for long-term growth.

Pro Tip – The following are warning signs a client might not be a great fit for your MSP:

• Consistently poor communication
• Unrealistic expectations or demands
• Failure to see IT as an investment and reluctance to upgrade critical systems
• Chronic late payments or disputes over pricing
• Disrespectful behavior or disregard for boundaries and contracts

Hard Truth #4: Your MSP Can’t Survive on an Island

This hard truth is the reason The 20 exists – and it’s truer today than ever. When we started The 20, we would tell MSP owners they couldn’t thrive on an island. But now, with our industry maturing at a dizzying pace, we’re prepared to upgrade that statement:

Forget thriving – your MSP can’t even survive on an island.

In other words, isolation is no longer an option. Success in today’s MSP industry demands collaboration, shared knowledge, and leveraging the collective strength of a community – like ours!

Hard Truth #5: Right People in Right Seats = Everything

Talk about hard truths! This is one of the most difficult lessons for MSP owners to learn – just ask our CEO, Tim Conkle.

But putting the right people in the right seats – in roles that they’re suited and equipped for – is absolutely vital to ensuring long-term growth and success as an MSP. And remember, making sure everyone’s in the right seats isn’t just better for your business – it’s better for your team too. When team members are placed in roles that align with their strengths and abilities, they’re more likely to excel and avoid burnout.

Hard Truth #6: Strategy > Stack

MSP owners are naturally drawn to technology, but focusing too much on the tools rather than the big picture can hold you back. Remember: your stack is only as effective as the strategy behind it. A smaller, well-curated vendor pool saves time and reduces complexity, allowing you to focus on growth and client satisfaction. Instead of constantly juggling tools and contracts, streamline your solutions and align them with your business goals. A strong strategy will always outperform even the most advanced tech stack.

Inside Scoop – One of the main reasons MSPs become members of The 20 is to curb ‘vendor fatigue.’ Our battle-tested stack and contract management process take the hassle out of juggling multiple vendors, simplifying operations and saving you valuable time.

Hard Truth #7: Word of Mouth Won’t Cut It

Relying on referrals alone to grow your MSP is a risky gamble. To scale your MSP, you need consistent marketing and lead generation efforts. Invest in strategies that put your name in front of prospects and set your business apart from the crowd. And don’t hesitate to get yourself some help – your growth depends on it!

Hard Truth #8: Technical Knowledge Is Secondary to Industry Knowledge

Being a technical expert is important, but it’s not what will propel your MSP to the top of the industry. To truly thrive in the MSP space, you need to understand the broader trends shaping the industry. Are you aware of emerging technologies, changing client expectations, and market shifts? Staying informed requires effort – join a peer group, attend conferences, and engage with industry leaders. Remember, isolation isn’t just lonely – it’s a reliable shortcut to the back of the pack.

Hard Truth #9: Sales Is a Rare Skill – Hire for It

It’s no secret that sales is a powerful driver of growth. But less widely appreciated is the fact that great sales talent takes time to find, train, and retain. So whatever you do, don’t delay the investment for any longer than absolutely necessary. We tend to recommend that growth-minded MSPs hire at least one skilled salesperson to focus on building a healthy pipeline.

Pro Tip – Don’t expect a sales professional to be some kind of ‘silver bullet’ for all your growth woes. After hiring sales specialists, nurture them with the right onboarding, training, and professional development opportunities. Check out this article for more advice on how to make the most of your sales hires.

Hard Truth #10: Egos Are Expensive

Egos are expensive. They’re very expensive, in fact. In fact, they’re very, very expensive. The sooner you learn that, the better. After working with hundreds of MSP owners here at The 20, it has become clear that the one trait that drives success more than any other is the ability to step back and evaluate things objectively, without the ego’s constant input and need for validation. Master that, and you’ll unlock a whole new world of growth.

Hard Truth #11: You’re (Probably) Not Focused Enough on Scalability

You might think you’re sufficiently focused on building out scalable business processes, but chances are, you’re not. It’s almost impossible to underestimate the importance of scalability to your MSP’s long-term growth. It’s also all too easy to lose sight of the fact that scalability is a matter of degree. It’s not an either/or proposition; it’s an ongoing effort to optimize and streamline – and the best MSPs are continually refining things to make operations more scalable.

So however much time and resources you’re putting into making your core processes more scalable, it’s likely not enough. What gives us the confidence to say this? Working with hundreds and hundreds of MSPs over the course of several decades.

Related Blog – Check out our article on the importance of scalability for MSPs.

Final Thought

Hard truths might be difficult, but accepting them is a lot easier than trying to succeed without them. So remember the no-nonsense advice we’ve given here – and do your best to surround yourself with people who can ‘tell it like it is.’

Our MSP members definitely appreciate the open dialogue that goes on here at The 20. We collaborate, we share what we know, and we hold each other accountable. Why? Because working together works wonders.

Interested in joining a dynamic community of MSP owners who support one another’s growth? Schedule your call with The 20 today! We’d love to learn about your MSP business, its main challenges, and your long-term professional goals. With over 150 MSPs in our network, every successful partnership begins with a simple conversation. Let’s connect!

The Turnaround Story of Seann Moreno and His MSP Journey with The 20

In 2022, Seann Moreno of Data Tech Café found himself in a predicament that many Managed Service Providers (MSPs) dread: his business was bleeding money. Day-to-day challenges had accumulated so much, simply staying afloat was becoming a huge burden. His MSP needed a turnaround – and fast.

Big Changes

Seann’s main struggle was high turnover among technical staff. Training technicians only to watch them leave drained company resources, while making it difficult to provide consistently excellent service. The problem wasn’t going to go away on its own, so Seann started thinking.

First, he took an honest look at his operations and several things became clear: he needed to overhaul his approach to managing tech support, as well as streamline client onboarding and bring documentation up to par.

Making these changes would be no small feat, but Seann understood their urgency, and in late 2022, he began exploring outsourcing Tier 1 support so he could focus on high-level projects and onboarding tasks. He explored several companies, but they either (a) lacked a US-based support desk, or (b) weren’t a good fit culturally.

1,800 Endpoints Later…

Finally, Seann met with The 20. Impressed by our team’s structured leads and 24/7 US-based support desk, he decided to test out our service with his largest and noisiest client. The transition started small, with simple tasks like password resets. But it didn’t stay small – within two months, Seann had moved 1,800 endpoints over to The 20.

The initial experiment was a success. But was Seann ready to make the full transition? Adopting our service delivery model for all his clients would be a massive undertaking, and there was still that documentation to worry about…

Despite his fears, Seann committed to the transition.

Focused on Growth

Seann’s goal in joining The 20 was clear: minimize internal Tier 1 tasks and reevaluate his team composition. By June, merely four months later, every one of his clients was fully onboarded with The 20.

The improvements came quickly and were dramatic. Leveraging The 20’s resources and support desk allowed Seann to serve more/bigger clients with fewer staff, leading to greater operational efficiency and profitability. We even helped with that pesky documentation!

From a company struggling to stay afloat with negative EBIDTA, Data Tech Café was now thriving, growing, and scaling with ease.

A huge part of Data Tech’s transformation involved a shift in focus among Seann and his leadership team. No longer bogged down by day-to-day operations (Data Tech was able to offload up to 90% of Tier 1-3 work to The 20), Seann’s senior staff could turn their full attention to high-value activities and strategic growth initiatives. And with The 20’s top-notch technical team shoring up support, Seann’s days of worrying about retaining talent were over.

“The 20 allows me to work on my business now instead of in my business…and life is great because of it.” – Seann Moreno

With The 20’s help, Seann transformed Data Tech Café into the large and profitable company he’d always dreamed of building, and in 2023, he sold that company to The 20 – a big payday and the next chapter in his MSP’s growth journey.

Seann Moreno’s story might be remarkable, but it’s not unusual. The right partnership can make all the difference for a struggling MSP. Success in this industry isn’t just about working hard; it’s about working smart – and getting help when you need it.

Grow Your MSP with The 20!

Questions about growing your MSP? Let’s Talk!

MSP Acquisition Spotlight – Adam Bell

1. What’s it like not being your own boss anymore? Did that take some getting used to?

Yes and no. I do miss having the final say and the speed at which I could accomplish things in a smaller organization. However, there’s also a certain ease in having a boss—especially when it’s by choice. I’m still closely involved with my team, which has been beneficial for both them and me during this transition.

2. Selling your MSP is a big decision. Where did you go for guidance and advice?

I took time to pray about it and sought guidance from several trusted sources—my wife, financial advisor, tax advisor, lawyer, and fellow business owners.

3. How difficult was it to find the right buyer? What made you choose The 20 MSP in the end?

Finding the right buyer wasn’t easy, but I chose The 20 because of the strong relationship and potential for investment. As a member of The 20, I was already familiar with how they operate, so the decision to merge and scale made perfect sense.

4.  What’s changed the most in your life since selling your MSP?

Instead of carrying the entire burden of running the company on my own, I now have a capable team to share the responsibilities. This shift has not only lightened my workload but has also allowed me to focus on areas where I can add the most value. Having the support of a strong team has brought a sense of balance, and as a result, I feel significantly less stress overall. It’s been a positive change for both the business and my personal well-being.

5. Since selling your MSP, is there something – inside or outside of work – that you’ve been able to focus on more?

Although I’m still quite busy, I’ve been able to carve out more time to focus on both my physical and mental well-being.

6. What do you miss most about running your own business?

I miss the independence and ability to make big decisions quickly.

7. What’s your best advice for someone thinking about selling their MSP?

Ensure you’re emotionally prepared to let go of the business you’ve built. Take the time to carefully weigh the risks and rewards of selling. Personally, I had clear retirement goals, which I was on track to achieve if everything went smoothly. However, by selling and merging with The 20, I was able to reduce risk while still meeting those retirement goals.

8. Can you talk about your current role? How has your day-to-day changed since selling your company?

My day-to-day responsibilities haven’t changed significantly—I’m still managing the same team. However, the number of clients we support has grown. When I was running my own business, I lacked the human resources needed to fully manage all aspects. Now, I have a dedicated team to handle financials, billing, client relationships, and technical support. This has enabled my team and me to manage a much larger client base effectively.

9. In your opinion, what’s the most important quality for success?

Hope alone is not a viable business strategy; true success is built on hard work and tenacity.

10. What’s something most people don’t know about you?

I am a functional introvert.

11. Describe your dream vacation in 3 words…

Relaxation, Sun, Fishing

Celebrating The 20 MSP as Datto’s Partner of the Year! ????

We’re overjoyed to share that The 20 MSP has been named Partner of the Year at this year’s Golden Datto Awards! Presented at DattoCon 2024, this honor highlights our dedication to innovation, resilience, and excellence – values we proudly share with the incredible Kaseya/Datto community.

The Golden Datto Awards are all about recognizing MSPs who are shaping the future of IT, and we’re truly humbled to be part of this remarkable group. As Datto shared, each award recipient represents “what’s possible through dedication, expertise, and a commitment to success.” For The 20 MSP, this recognition is a testament to the hard work of our team, our collaboration with Datto and Kaseya, and our shared drive to create meaningful impact in the managed services industry.

We’re grateful to Datto for this incredible honor, and we extend our congratulations to the fellow finalists Meriplex, GOCLOUD Inc., VC3, and Logically. Each company exemplifies excellence and dedication, and we’re inspired to stand alongside these leaders in our industry.

A special thank you goes to our members, clients, and partners for being part of this journey with us. Your trust and support drive us to keep setting new standards in MSP excellence, and we’re thrilled to have such a strong foundation to keep building on. We’re excited to continue growing, innovating, and delivering best-in-class solutions that empower our clients to thrive in today’s digital landscape.

Here’s to The 20 MSP, the entire Datto community, and everyone committed to advancing the IT industry. Together, we’re building a stronger future, setting new standards, and reaching new heights in managed services – and we couldn’t be more excited for what’s to come!

Next-Level Growth

How George Burke Doubled His MSP Business with The 20

It started at an IT Nation event. George Burke was one of many MSP owners in attendance. His MSP, The Computing Edge, was doing okay at the time – but George wanted more.

His “a-ha” moment came during a meeting about peer groups. George realized his MSP growth strategy was missing something crucial: a structured accountability group to keep him on the right track.

So he got to work researching different organizations, and was impressed right away by The 20, with its focus on process and commitment to collaboration. George wanted in, but one concern was giving him pause…

From Doubt to Action

Becoming a member of The 20 would mean making significant changes to The Computing Edge’s core business model and operations. With 1000+ endpoints to manage, adopting a whole new approach wouldn’t be easy. But would it be worth it? George looked at what the MSPs in The 20 were accomplishing, and his heart and mind told him the same thing: Go for it!.

Putting his reservations on hold, George moved forward with onboarding. Working closely with The 20’s expert and always-friendly team, George ensured that both his clients and employees experienced a smooth transition. It also didn’t hurt that The 20’s built-out RMM and PSA tools – including light set-up pieces, scripts, and ready-to-use documentation – greatly reduced the learning curve and set up George and his team for a seamless integration.

From Action to Results

Once fully on board, George’s doubts started giving way to results. First, he discovered the true power of marketing. He’d known for some time that his MSP under-utilized marketing, but working with The 20’s world-class team of marketing experts opened his eyes to a whole new avenue for growth.

Second, he made a series of long overdue changes to his business model, some of which were directly inspired by conversations with fellow members; he fixed his pricing to more accurately reflect the true value of his services, he replaced verbal agreements with formal contracts, and he began to leverage Hardware as a Service (HaaS) to drive a 40% revenue increase in just one year. Naturally, George was thrilled:

“We have been providing managed services for well over twenty years now, but joining The 20 has helped us grow in ways we never thought possible.” – George Burke

Finally, George traded in his tech-focused perspective for a strategic business mindset. Inspired by the example of other members and The 20’s leadership team, he went ‘all in’ on his MSP’s growth, even when that meant leaving his comfort zone or changing his established routines. The results?

Working with The 20 helped George grow his MSP’s annual revenue from $1.4 million to $2.7 million in just 1.5 years, effectively doubling his business.

After selling The Computing Edge to The 20 in April of 2023, George is now thriving in his new role as VP of Regional Sales. Looking back on his journey, he’s grateful he found the courage to make big those big operational changes. Turns out they were worth it – and then some!

Grow Your MSP with The 20!

Questions about growing your MSP? Let’s Talk!

3 Takeaways from DattoCon 2024

DattoCon 2024 was fantastic. The 3-day event, which took place last week at the lovely Fontainebleau Hotel in Miami Beach, Florida, brought in a record number of attendees. It was the perfect example of what happens when you get a bunch of smart and driven people in the same room to tackle common challenges and share their best ideas – pure magic!

If you’re not already attending shows like DattoCon – at least one or two a year – you’re missing out. Your MSP is missing out. Beyond the content itself, there’s something unbelievably motivating about being around other MSPs. If you’re on the fence about attending a reputable industry event, go for it – and thank us later.

But if you missed out this time round, all is not lost. We’ve got you covered with 3 Key Takeaways – insights too good not to share with the MSP community at large. Enjoy!

Takeaway #1 – There’s still plenty of room for smaller MSPs.

Industry giant and CEO of Kaseya, Fred Voccola, took the stage at DattoCon and delivered an eye-opening presentation on what’s been happening in our industry – as well as things to come. Fred covered a lot of ground, and we’ll just zoom in on one key insight here:

There’s still room (and opportunity) for smaller MSPs – and lots of it!

MSPs worth $1M or less – even less than $500k – are in a position to thrive in the coming years. Of course it will require the right strategy, but the conditions are right, and the opportunities are there.

Consider this: there are, as Fred reported, a lot more MSPs getting started than getting acquired – more than 3x more to be exact. In short, yes, the MSP industry is consolidating – just not nearly as quickly as it’s proliferating. There are multiple reasons why this is so…

First, businesses’ IT needs continue to grow in number and complexity. What were formerly aspects of IT (e.g., compliance, backup, security) are now their own distinct categories, requiring specialized services and focused attention. As a result, most (73%) of the new MSPs on the block are “specialized,” offering expertise and support in one or two key areas.

Second, MSPs are facing a huge and growing TAM, or “Total Addressable Market,” which refers to all the revenue they could generate by serving every potential customer. Simply put, companies need MSP services – and more than ever – meaning there’s plenty of business to go around.

Finally, as Fred shared in his presentation, “small-cap M&A” (EBIDTA < $750k) is exploding, on track to nearly double last year’s number of deals. Smaller MSPs can be attractive acquisition targets, especially for companies seeking to add key expertise or access new markets quickly.

Bottom line: There’s still plenty of room for smaller MSPs, despite what consolidation and the rise of MSP platforms might have you thinking – but success will require playing your cards right, a sound M&A strategy, and a well-defined market niche.

Takeaway #2 – MSP growth is personal growth.

During his talk at DattoCon last week, The 20’s own Tim Conkle (founder & CEO) passed out little mirrors to the MSPs in attendance. He told them: If you want to see the solution to your MSP’s biggest challenges, open your mirror and take a good, hard look.

Tim didn’t mince words, and that’s because he’s speaking from experience. Tim spent almost two decades struggling to grow his MSP business. During that time, his entire focus was on changing his business – tweaking tools and processes till the cows came home. But it wasn’t until he did something far more radical that things took off: change himself.

To get more concrete, Tim changed how he conceptualized his role as leader of his MSP business. He replaced a my-way-or-the-highway mentality with a we’re-stronger-together philosophy. He kicked ego to the curb and began delegating, trusting, and connecting. He started spending less time perfecting his stack, and more time on sales and marketing.

The result? Tim’s MSP took off. His reminder to MSPs last week was a hard truth most business owners need to hear: if you want to take your MSP from surviving to thriving – from good to great – you will likely have to start with the person in the mirror.

Takeaway #3 – This industry is on the brink of something big.

After attending DattoCon – after 3 days of hearing from some of the channel’s best and brightest – we’re more convinced than ever:

This industry is on the brink of something big – a major leap forward in the way IT support is done, the likes of which we haven’t seen since the move away from break/fix two decades ago.

We’re not just talking about consolidation either. We’re talking about concerted efforts to solve the ‘profitability problem’ that’s been hampering MSPs for decades. We’re talking about radical progress in how we integrate AI and automation into our core business processes. We’re talking revolutionizing service delivery to allow for unprecedented

scalability.

MSPs are evolving – and so are the skills required to run a successful MSP. Don’t get left behind. Schedule your call with The 20 to discuss your MSP’s future.

Join or Sell? Our Advice to MSPs

It’s no secret – M&A activity in the MSP space has once again heated up. After a minor lull following the historic dealmaking in 2021, we’re seeing a near return to the record-setting levels of that watershed year.

This is all to say: if you’re an MSP owner, you might be feeling some pressure to sell – to ‘get in on the action’ while the going’s good. A few months back, we put out an article about whether to sell now or later. Check it out if you haven’t.

In this post, we’re exploring a slightly different question – a question that’s relevant to any MSP thinking about entering the M&A arena, and especially relevant to those who’ve singled out The 20 as a potential buyer:

“Should I sell my MSP to The 20 now or become a member of The 20’s growth platform/peer group and sell my company at a later date?”

Before we get into the nitty-gritty, we want to share our general viewpoint on this matter. The truth is, if your MSP isn’t a member of our growth platform, The 20 MSP Group, you should give some serious thought to joining the group before approaching the table for a deal. Keep reading to find out why.

Join First, Sell Later

Does selling to The 20 right away make sense for some non-member MSPs? Yes! In fact, our most recent acquisition brought such an MSP into our tent. But for the majority of MSPs, it’s a good idea to join our peer group before engaging The 20 as a buyer. Here are eight reasons why…

Reason #1: Your MSP Isn’t Big Enough!

The first reason to become a member of The 20 MSP Group before selling your MSP is straightforward – your MSP isn’t big enough to secure a favorable deal (or any deal at all).

Size isn’t the only thing we’re looking for in an acquisition candidate, but it is an important consideration. MSPs below a certain revenue threshold simply aren’t worth buying, as they haven’t achieved the operational maturity and inherent scalability that larger MSPs possess.

To get concrete, if your MSP is pulling in less than $1 million in annual revenue, chances are, you’re too small to secure a deal with us – and with most prominent buyers for the reasons mentioned above.

The 20 MSP Group was created to help small and medium-sized MSPs grow and scale faster than the competition. So, by becoming a member, you can fast track your MSP’s growth, and achieve ‘sellability’ a heck of a lot faster than you could working alone on an island.

Reason #2: Your MSP Could Be Even Bigger!

Let’s say your MSP does pull in $1M+ in annual revenue. Does that mean it’s a good idea to sell the company to The 20 – or another buyer? Not necessarily.

Everyone’s circumstances are different, and if you’re desperate to exit the MSP game, then who are we to tell you to hang on another couple of years? That said, it’s important to keep in mind that deal size does not increase linearly with MSP size. In other words, if a $1M MSP can expect to secure a $5M offer, that doesn’t mean a $5M MSP can expect to secure the same multiple – i.e., a $25M offer.

As MSPs grow larger, they achieve greater economies of scale, efficiency, and scalability, resulting in exponentially higher valuations (for more details check out our free M&A guide).

To break this all down in plain English: Becoming a member of The 20 MSP Group can help your pretty big MSP get really big, and, as a result, secure a much better deal when you decide to make your exit.

Reason #3: Accelerate Growth with a National Footprint

When you become a member of our group, your small to medium-sized MSP is effectively plugging into the power of a national company. With our 100% US-based, 24/7 live-answer support desk and robust national footprint, we empower our MSP members to take on larger clients with multiple locations. We also support members with branding, marketing, and sales, giving your business the exposure it needs to grow.

In short, if bigger MSPs get better deals, it’s in your best interest to get as big as possible as quickly as possible (unless of course your number one priority is simply getting out). Joining The 20 helps you do exactly that.

Reason #4: Community! Fun! This sh*t is awesome!

Running a business can be a lonely journey, which is why joining The 20 can be such a refreshing experience for MSP owners who’ve gotten used to struggling ‘on an island’ – to the extent that anyone can get used to such a thing!

Newer members are consistently blown away by how much the MSPs in our tent communicate and collaborate. Check out this 2-minute video to hear one of our current members speak about The 20’s unique culture and ‘the power of the people.’

There is of course immense business value in having a large community of likeminded MSP owners who are ready and willing to help you out. But there’s another perk worth mentioning – it’s a lot of fun. Or, as we prefer to say, this sh*t is awesome!

So, if you’re looking to sell because you’re feeling burned out, or just sick of the IT business, know this: joining The 20 can give you a radically different entrepreneurial experience, one defined by less busy work and stress, and more camaraderie and growth.

Reason #5: Derisk the Deal

One of the biggest risks when selling your MSP is a cultural mismatch with the buyer. Did you know research suggests that culture is the cause of 30% of failed integrations?

If you’re considering selling your MSP to The 20, joining our peer group before doing so allows you to experience our model, culture, and processes firsthand. That’s because our members adopt our business model – we need the MSPs we help to be on the same page operationally speaking, as it makes it possible for our support desk to provide excellent service across the board.

Plugging into our system as a member ensures that if you do eventually sell your MSP to us, the integration will be seamless, and you’ll have complete confidence in the decision. With other buyers, like private equity firms, it can be hard to build this level of trust.

But don’t just take our word for it; visit our MSP acquisitions page for video testimonials from folks who sold their MSP businesses to us.

Reason #6: Focus On/Find Out What You Love

We give our MSP members a lot, but perhaps the single most important asset we can give you is more time!

MSP owners are typically bogged down by busy work. But not our members. With our support desk handling up to 90% of your MSP’s tier 1-3 tickets, you and your technical team will have significantly more time to tackle higher-value projects and initiatives.

In this way, joining The 20 gives you an opportunity to figure out what it is you really love doing in the MSP space. This means when you do sell your MSP, you’ll have a better idea of what kind of role you want to step into – if any.

Reason #7: Avoid the Woulda, Coulda, Shoulda…

Before selling your MSP, don’t you want to see just how far you can take your business with the right tools and support? Joining The 20 gives you access to proven processes and growth strategies that maximize profitability. Selling without ever leveraging these resources might leave you wondering, “What if I could have done more?”

Reason #8 – Second Wind for the Win!

Finally, you may find that joining The 20’s growth platform revitalizes your passion for your MSP business. With a better work/life balance, more success, and fewer operational headaches, you may decide you’re not ready to sell after all. Just think – you could enjoy several more years as a business owner, with the added bonus that when you do sell, your MSP will be worth significantly more.

Final Thought

As you can see, there are plenty of reasons to consider becoming a member of The 20 before seeking an M&A deal. But at the end of the day, your ideal exit plan will be just that – yours.

To figure out what the best path forward is for you and your MSP business, we recommend sitting down with Tim Conkle, The 20’s CEO and the visionary behind our M&A strategy. To set up your one-one-one with Tim, fill out this short form with basic info about your MSP business and we’ll get back to you in a jiffy about scheduling up your call.

It’s About Time!

How The 20 Helped Andy Gainor Get More of What Matters

Andy Gainor‘s career in the MSP space started with a bang. As Sales Manager for Integrated Technology Services (ITS), Andy used his sales acumen to propel the Charleston-based MSP to new heights, and within a few years, was rewarded with a promotion to VP.

A Sobering Realization

Inspired by ITS’s early success but nowhere near satisfied, Andy was prepared to do just about anything to help his company remain on a path of rapid growth – or so he thought. Andy did a deep dive into the industry to find out what it would take to get to the next level – to become a truly elite MSP with robust operational maturity, substantial revenue growth, and market-leading profitability. His research led him to a sobering realization…

Taking ITS to the next level would not only take significant financial investment, but years of hard work mastering various tools and perfecting operational details.

Plus, there was the notoriously high turnover rate among MSP employees, which would make managing a support desk a constant struggle.

Andy still wanted great things for ITS, but not if it meant giving up his free time – and maybe even his sanity! He’d seen enough burned-out MSP owners to know that chasing success at all costs was a recipe for disaster. But what were his options?

The 20, The One!

Andy went back to the drawing board to look into a different path to the
top, one defined by partnership and collaboration. He’d heard about peer groups and MSP co-ops, and started his search for ‘the one’ – the organization whose culture, operations, and expertise would help ITS conquer its biggest business challenges and unlock new growth…

In his search for ‘the one,’ Andy came across The 20, a forward-thinking group of MSPs determined to reach – or remain at – the top twenty percent of the MSP industry.

The 20, with its US-based 24/7 help desk and turnkey solution of proven tools and processes, offered its MSP members a way to scale operations rapidly without drowning in busy work.

More Time, More Growth

After becoming a member of The 20, Andy and his team quickly discovered that an MSP’s most valuable resource isn’t its technology, but its time. All the time Andy and his team would have spent on staffing, managing a help desk, and putting out fires now went into strategic growth initiatives. While most MSPs’ growth slows considerably after an initial burst, ITS experienced the opposite:

As a member of The 20, ITS grew top- line revenue 6x in under 6 years, evolving from a competent local MSP to an operationally mature MSP with a robust regional presence.

Behind this dramatic growth was a fundamental shift in mindset. When Andy and the ITS leadership team were going it alone, the focus was on doing more — working harder, not smarter. After joining forces with The 20, it soon became clear that the key to MSP success isn’t doing more, but doing a few things really well – and effectively delegating the rest.

In Andy’s case, this meant refocusing on his passion: sales. With The 20 taking care of operational details, Andy was free to work his magic, maintaining a 33% close rate for all first-time appointments!

Andy’s journey with The 20 underscores a vital lesson many MSP owners never learn: sometimes the cost of achieving a goal on your own can overshadow the benefits. Teaming up with The 20 allowed Andy and the ITS team to achieve dramatic growth without surrendering their sanity to the operational grind.

And The 20 didn’t just help ITS grow; it also provided the MSP with a fruitful exit route when the company’s owners decided it was time to sell the business. Today, Andy is happy in his new role as VP of Regional Sales for The 20 MSP. He’s still working his magic — and this time, it’s on a national stage.

Grow Your MSP with The 20!

Questions about growing your MSP? Let’s Talk!