Golden Rules for MSP Excellence: It’s Business Time!
With just over a month till VISION ’24 (register here), it’s time to get into the spirit of this year’s conference theme: Achieving the Gold Standard as an MSP. We’re excited to share the first installment in a special 4-part blog series: Golden Rules for MSP Excellence. In this first article, we’re looking at the number one rule MSPs should follow in the pursuit of greatness…
Before we get to our first golden rule for MSP excellence, let’s talk about what MSP excellence even means. When we talk about ‘achieving the gold standard’ as an MSP, what are we really talking about?
The easy answer is that ‘achieving the gold standard’ means doing what the biggest MSPs do.
But it’s not the best answer. That’s because big MSPs aren’t always shining beacons of operational maturity and service excellence. And while achieving the gold standard helps with growth – undoubtedly – it’s not just copying large MSPs. It’s doing things the right way – not just growing, but scaling; not just winning new clients, but keeping them (and keeping them happy); not just solving technical problems, but core business challenges.
A lot of larger MSPs are good at these things – that’s a big part of how they became larger MSPs! But achieving the gold standard isn’t exclusive to the major players with many millions in annual revenue. In many cases, the gold standard is something you can start working toward right away, regardless of your MSP’s size.
This is especially true of our first golden rule for MSP excellence…
Golden Rule #1 – Be About Your Business
Be about your business. What does this mean? On the surface, it just means you should, as an MSP owner (and really any business owner), be focused, disciplined, diligent, professional, and so on. But there’s a deeper meaning…
To be about your business is to conceptualize your MSP as a business, first and foremost, and not, say, as a source of technological expertise or an excuse to geek out about computers while making a little money.
Thinking about your MSP business as a business doesn’t mean you have to stop being passionate about technology, or that you should think purely in terms of profit. In fact, both of those sound like a recipe for disaster.
So what does this conceptual shift involve? How do you think like a business owner and approach decisions accordingly?
Good for Business
One of the best ways you can ‘be about your business’ is by habitually asking: Is this good for business?
This might sound obvious, but as the following two examples reveal, determining the overall impact of a decision on your MSP’s health as a business is anything but straightforward.
Example #1 – The Right Tool
You’re considering making a change to your MSP’s tool stack. But you really like your tools! From a purely technical perspective, they rock!
But what about from a business perspective? Would switching to a new tool stack be good for business?
Answering that question actually requires answering a whole bunch of other questions: Are my tools scalable enough for my growth goals? Are they preventing crucial integrations? Are they backed by heathy vendor relationships? Would switching tool stacks open new doors?
And let’s not forget about what is arguably in this context the most important and salient question of all: Which tools best serve my client relationships?
You might like your current stack, but when you’re striving for the gold standard, it’s not about you. It can’t be. It’s about your operations, your employees, your clients – in short, your business.
Example #2 – Just Say No
Imagine one of your clients demands a complex system migration in a week. You might be able to pull it off, emphasis on might…
When you’re first starting out as an MSP owner, it’s only natural to say yes. New client? Yes! Custom request that falls outside your core capabilities? Sure! Unrealistic timeline that will likely make your technicians hate life? Bring it on!
While understandable, saying yes to everything isn’t a sustainable business practice, and in fact, strategic no‘s are a hallmark of a mature, forward-looking MSP.
So, getting back to that complex migration, while the engineer in you might jump at the opportunity to showcase some serious technical wizardry, the business owner in you should be wary. Depending on the details, you might decide to take on the project, but it shouldn’t simply be because you can do it (albeit with a lot of stress and overtime). It should be because, all things considered, taking on the project will be – you guessed it – good for business.
A Matter of Time
As the above two examples show, making decisions that are good for business, while simple in concept, is pretty darned complicated in practice. That’s because it requires ‘zooming out’ – seeing the big picture and considering the cascade of effects a single decision is likely to have.
This zooming out business is especially challenging when you’re busy. When you’re up to your neck in day-to-day work while constantly putting out fires, it’s almost impossible to step back and consider things coolly, with an eye to the overall health of your company.
To perform that kind of objective assessment, what you really need is time. This is why one of the most important things you can do as an MSP owner is find ways to protect your time. Creating repeatable, scalable processes backed by robust documentation is one way to protect your time. Delegating core business functions to trusted partners and experts is another. Becoming a member of a group like The 20 and off-loading the bulk of your tickets to an acclaimed 24/7 help desk – that frees up time too!
However you choose to free up your schedule, prioritizing high-impact activities and strategic planning will help drive your business forward. Just ask Greg Padgett, an MSP owner who joined The 20 back in 2018:
“When I met him [Tim Conkle, CEO of The 20], I had determined I was tired of just making myself a job; I wanted a business. Joining The 20 helped me to get out of that hole that I had built for myself, and be able to stand up above the company and look into it and see what needed to change, and make those hard decisions to make those changes.”
That’s what it’s all about, folks – getting out of the daily grind and assuming your rightful position as the visionary leader of your company.
It’s VISION Time!
If you enjoyed this piece, look out for the next installment in our 4-part blog series, Golden Rules for MSP Excellence. And don’t forget to register for VISION ’24, taking place next month (Aug 27-30) in sunny Dallas, TX.
The MSPs you’ll encounter at VISION are some of the most motivated, process-driven, and business-savvy companies in the game. Want to know what it takes to make it in this competitive industry? Come hang out with the best of the best at VISION ’24!
Beyond the Buyout
How The 20 Nurtures MSP Growth While Respecting Ownership Boundaries
Chances are, you’ve caught wind of The 20’s M&A activities. We’ve certainly been busy, acquiring several MSPs each month as we pursue our mission of building the first premier MSP with coast-to-coast reach.
But with all the press surrounding our rapid expansion and unique consolidation strategy, it’s easy to lose sight of what The 20 is really all about: not acquiring MSPs, but helping them grow and find success in our hyper-competitive industry.
In this blog post, we want to clarify a few things about our M&A strategy, and address a question that’s been coming up: Do we recruit MSPs to join The 20 simply because we want to buy them?
The 20 MSP vs The 20 MSP Group
The first thing to make clear is that The 20 MSP and The 20 MSP Group are distinct entities – and not just legally speaking, but conceptually as well.
The 20 MSP is an individual MSP. We want The 20 MSP to become the first MSP with extensive, coast-to-coast reach and premier service delivery.
The 20 MSP Group (aka simply “The 20”) is, on the other hand, exactly what it sounds like: a group of MSPs, all of them independently owned and operated. When MSP owners become members of The 20 MSP Group, they sign on to our way of doing business, but retain complete ownership of their companies.
There is, however, a strong connection between The 20 MSP and The 20 MSP Group. While The 20 MSP has recently expanded its acquisition candidate pipeline to include non-member MSPs, consolidation efforts have been focused primarily on member roll-ups. MSPs join The 20 MSP Group to conquer their biggest pain points and achieve new growth. When these MSPs reach a certain level of operational maturity and revenue, we offer them a proven exit route – selling to The 20 MSP!
This strategy helps us circumvent problems associated with a more traditional approach. More specifically, acquiring MSPs that share our tools and processes helps us all but eliminate attrition and post-deal friction – two notorious impediments to a smooth integration. We’re not interested in bringing together MSPs with disparate business models and operations, as we firmly believe that alignment is the key to long-term growth, and that The 20 MSP’s success hinges on preserving a single standard of excellence across the board.
This raises an important question: Do we recruit MSPs to join The 20 MSP Group simply because we want, at some point, to acquire those MSPs and integrate them into The 20 MSP?
Let’s talk about that.
To Acquire or Not to Acquire? – That is the Question!
Let’s start with the short answer. Do we recruit MSPs to join The 20 MSP Group simply because we’re looking for acquisition targets?
No!
A slightly longer answer: While the 34 acquisitions we’ve completed (at the time of this writing) might seem like a lot, the number pales in comparison to the 150+ MSPs that belong to The 20 MSP Group – and a good number of these businesses’ owners are interested in selling to us. In short, there’s no shortage of quality MSPs in our acquisition pipeline – especially now that we’re casting a wider net to include non-member MSPs.
To keep things clear, just remember that only the first of these two statements is true:
TRUE: The 20 MSP is particularly interested in acquiring MSPs that belong to The 20 MSP Group.
FALSE: The 20 MSP Group only accepts MSPs that want to be acquired by The 20 MSP.
The first sentence is one-hundred percent true. We’re definitely looking to acquire MSPs from our group for a very simple reason: We know these MSPs! They use The 20’s tool stack and business model, which makes integration relatively seamless and minimally disruptive for end clients. But, more importantly, we know the people at these MSPs. When we roll up a member, the question of cultural compatibility isn’t even a question.
Sentence #2 is, on the other hand, completely FALSE. In fact, when MSPs approach us about joining The 20 MSP Group, we’re not even thinking about M&A. For one thing, we have, as previously mentioned, plenty of MSPs ready to roll up.
Secondly, when an MSP first joins The 20, we often have no way of knowing if they will grow into an MSP worth acquiring.
And thirdly – and most importantly – creating acquisition targets just isn’t the point of The 20 MSP Group. The purpose of The 20 MSP Group is to help small and mid-sized MSPs grow, scale, and get to that next level – faster and more easily than they could on their own. We’ve worked extremely hard to create a formidable ‘MSP blueprint’ – a suite of tools and proven processes that reliably help small and medium-sized MSPs supercharge their growth and scalability. We don’t want to undermine years of effort by abandoning that core purpose.
OK, but what if an MSP becomes a member of The 20 MSP Group, and, as a result, achieves remarkable growth? Once an MSP gets big, do we start applying pressure and pushing them to sell?
Let’s talk about that.
Your MSP, Your Call
MSPs that become members of The 20 MSP Group tend to find success. That’s not a boast, just a fact. Our industry-leading tool stack, battle-tested business model, and above all else, our awesome community of supportive MSP owners – these things all feed into our members’ growth.
So, what happens when an MSP joins The 20 MSP Group and grows into a large and profitable company? Do we start hassling the owner about selling?
In a word – well, two words – H*LL NO!
In fact, it’s the opposite. We let MSP owners come to us. We keep our members in the loop about our M&A activities and intentions, because we want to know that selling to us is an option – if they’re interested in going that route.
But the most important word in the above sentence is if. We’re not interested in pressuring our members to sell – nor is it worth our time. Again, we have no shortage of acquisition targets, and if an MSP wants to remain a part of The 20 MSP Group without ever selling and joining forces with The 20 MSP, that’s A-OK.
In fact, we wouldn’t want to acquire all of our members as that would mean the end of the The 20 MSP Group! We’re incredibly proud of what the group has become – a genuine community of peers who actively support and help each other win.
Do we want to build a premier national MSP? Yes. Do we also want to keep growing The 20 MSP Group and providing small and mid-sized MSPs with the tools and resources they need to succeed? Yes! We aim to keep both projects going, and have no interest in sacrificing one for the other.
The Bottom Line
If you become a member of The 20 MSP Group, you’ll get an awesome tool stack, powerful processes for everything from sales to service delivery, and the warmest and most supportive community in the MSP space. What you won’t get is pressure to sell.
If you decide you want to sell your MSP, we have a proven process in place to acquire and integrate your company. But if you decide you don’t want to sell, we won’t try to change your mind. It’s your business, your call.
Discover the Gold Standard at VISION ’24
Our industry is at a turning point. Forces like AI and M&A are reshaping the managed services landscape. Some MSPs will thrive. Others will fall behind.
This year at VISION ’24, hundreds of top-performing MSPs are getting together to tackle the most pressing challenges MSPs face today. What does achieving the gold standard as an MSP look like in 2024? Find out this August at the MSP event of the year.
You don’t need to be a member of The 20 MSP Group to attend, but you do need a ticket – secure your spot at VISION ’24!
Should I Sell My MSP Now or Later?
Making Sure You’re Ready to Sell
In the first installment of this two-part series, we discussed the favorable market conditions that make now a GREAT time to sell your MSP. But market timing is only one piece of the puzzle.
It’s also important to establish whether your MSP business is ready to sell. Is your MSP ‘sellable’?
The short answer is that your MSP is sellable if someone’s willing to buy it. And no, we’re not being glib. It’s all too easy to forget that success in the world of mergers and acquisitions (M&A) boils down to one thing: connecting with the right buyer (or partner, in the case of a merger). Without this crucial piece of the puzzle, everything else is moot.
That said, there are some general factors that strongly influence an MSP’s appeal as an acquisition target. Let’s start with the obvious one: size.
Size Matters
So, what size MSPs are typically sold in today’s M&A landscape?
There’s no simple answer to this question, because different buyers have different requirements – sometimes markedly different.
Some buyers focus on growth and immediate profitability; this type of buyer will be on the lookout for MSPs that bring in serious revenue (at least $2 – 5 million annually), strong EBITDA margins, and a history of consistent expansion.
Other buyers might be more interested in acquiring smaller, less growth-oriented MSPs if they see strategic value, such as access to a new geographic market, unique talent pool, or specific client base.
Bottom line – Even if your MSP falls on the lower end of the revenue spectrum, your unique strengths can help you attract strong offers in the M&A landscape. So, don’t let the fact that you haven’t hit such-and-such a revenue threshold prevent you from even looking into entering the M&A arena.
But whatever your MSP’s size, the following characteristics are sure to impress any potential buyer of your business…
You ≠ Your Business
Your MSP is yours, sure, but that doesn’t mean you and your MSP should be essentially synonymous. You shouldn’t be your business. Wait, what? Let us explain…
A lot of smaller MSPs are more or less dependent on their owners to run smoothly. This can stem from insufficient documentation, or from the owner’s own inability to let go and delegate. Whatever the case, this high level of dependence is something potential buyers don’t want to see – in fact, it’s a huge red flag.
Think about it. If you are your MSP – i.e., if your clients’ loyalty and the integrity of your processes all depend on your direct involvement and presence – there’s a greater chance things will fall apart in your absence. Of course this is going to scare potential buyers!
Bottom line – To get your MSP ready to sell, make sure you have robust documentation and comprehensive processes in place, as doing so will help assure buyers that your MSP will continue to run smoothly under new ownership.
A Relevant Link
Looking for a shortcut to becoming an operationally mature, process-driven company? Consider joining The 20 MSP Group! We take small and mid-sized MSPs and equip them with proven and scalable processes that not only unlock serious growth, but also, impress potential buyers when it comes time to sell your company.
Potential buyers will scrutinize your books to evaluate your business’s health and potential, so make sure everything is in order. And we’re not talking in ‘pretty good’ shape either; we’re talking pristine.
Clear, accurate, and up-to-date financial records will not only help you secure a fair valuation, but also build trust with buyers and facilitate a smooth transition. So make sure your books are meticulously organized, as it will help lay the groundwork for a seamless sales process.
Diverse Revenue Streams
This one is straightforward. Buyers not only care about how much revenue your MSP pulls in, but also, where it comes from. More specifically, you don’t want all your revenue – or even most of it – to come from just one or two places.
It all comes down to risk. The more tied your MSP’s income is to just a few clients, the greater risk it poses to any potential buyer of your business. What happens if you lose one of your core clients? Potential buyers don’t want to find out.
For a more detailed, quantitative breakdown of ideal ‘revenue composition,’ download The 20’s free guide to MSP acquisitions: Sell Your MSP the Right Way.
Talented Team
People matter. Your MSP business isn’t just a collection of tools, processes, and revenue streams. It’s also a team of human beings who work together each day to bring your clients exceptional support.
If you’re thinking about selling your MSP, it’s important to keep in mind that your team – what they know and how they work – can be a major draw for interested buyers. Talented technicians are especially valuable in today’s market, where there’s a notable shortage of skilled labor.
Bottom line – If you have a talented technical team with great work ethic and a high level of dedication to client success, it can significantly enhance the value and attractiveness of your MSP to potential buyers.
Summing Up
While there are a number of qualities that make an MSP appealing to buyers, there isn’t a one-size-fits-all ‘profile’ for a sellable MSP.
Different buyers have varying criteria and strategic objectives, so what makes one MSP attractive might not apply to another. Factors such as operational independence, diversified revenue streams, and clean financial records are important, but the unique
strengths and strategic value of your MSP can also play a significant role in its marketability.
At the end of the day, our advice to MSP owners is to err on the side of exploration. Market conditions are so favorable at the moment, with an abundance of hungry buyers on the lookout for quality MSPs to acquire, that it’s worth investigating your options and assessing your MSP’s potential for sale.
Looking for expert feedback on your current exit strategy?Book an hour with Tim Conkle, The 20’s CEO and the visionary behind our unique M&A strategy.
Should I Sell My MSP Now or Later?
Making Sense of Market Trends
Let’s say you’re thinking about selling your MSP. You’ve put quite a few years into it, along with some blood, sweat, and tears, and now you’re thinking about getting out – ideally, with a nice paycheck in hand for all your efforts.
But should you sell your MSP now? Or, should you wait it out? Bide your time. Grow a little more…
This is a terrific question, and it couldn’t be timelier. M&A activity is once again on the rise. Actually, it has risen – and quite dramatically! MSP owners are approaching the table in droves in search of lucrative deals, driven by a large pool of interested buyers.
You’re of course tempted to get in on the action. But you’re not sure if it’s the right time. It’s such a big decision. You just don’t know –
Relax. Take a breath. And keep reading. You deserve some clarity, and while we can’t make the all-important decision for you, we can give you the information you need to make the right choice for your business and your clients.
In this first article in a two-part series, we’re examining the question of ‘now or later’ through the lens of market conditions. In part two, we will zoom in on what makes an MSP ‘sellable.’ Let’s dive right in!
Seize the Moment
Should you sell your MSP now? Assuming your MSP is ‘sellable,’ is now a good time to enter the M&A arena in search of a deal?
The short answer is unequivocal: All things being equal, now is a GREAT time to sell your MSP. The main reason comes down to basic economics and a little thing called demand…
After cooling off briefly in 2023, we are in the middle of another M&A hot streak projected to match if not surpass the buying frenzy a few years ago, which saw nearly 2000 deals closed! Right now, the market is flush with PE firms and large ‘platform MSPs‘ who are all salivating at the prospect of purchasing quality MSP businesses. MSPs make attractive acquisition targets for a number of reasons, which we go over in our free MSP acquisitions guide (get your copy).
Bottom line – Selling your MSP right now means taking advantage of near-perfect market conditions. Simply put, it can make you a pretty penny.
But what about…
You may still have some reservations. This is only natural. After all, you’re thinking about selling your MSP business, not lemonade on a street corner. Market conditions might be ideal, but what about…
What about, well, waiting? If M&A heated up in 2021 and 2022, cooled off in 2023, and once again heated up in 2024, can’t you just wait a little longer – till the next surge in M&A activity?
In theory, yes. But in practice, things aren’t so simple. For one, markets are inherently unpredictable. How many years will it be until you see an opportunity like this again? Do you have the energy to continue running your MSP for three more years? Five? Ten?
More importantly, M&A activity is so rampant, it’s literally changing the competitive landscape. As more and more MSPs get rolled up, we’re seeing larger and larger MSPs emerge – platform MSPs with never-before-seen resources and capabilities. And as these ‘super MSPs’ get bigger, so too will the MSPs they target for acquisition (in fact, this has already begun to happen). This means you will likely need to continue growing steadily to remain an attractive acquisition target further down the line.
You might be thinking, So what. I can keep growing. No problem…
While we admire your confidence, it’s important to know what you’re up against. Remember those super MSPs we mentioned a second ago? They’re your competition from here on out. That means if you want to sustain your current growth rate, you’re going to have to work twice as hard just to keep pace with these multi-state and even national enterprises.
This article does a terrific job of summarizing the challenges MSPs will face over the next ten years. Doing things on your own might have worked until this point, but times change, and making your exit now could be a timely way to avoid a very tough road ahead.
There are also your clients to think of. Is grinding things out on your own really what’s best for them? Getting acquired by a larger enterprise can mean getting access to crucial resources, better tools, more talent – all good things that can help your clients find success.
Does this mean you should sell to the first buyer that comes a-knockin’?
Absolutely not! Thoroughly vetting potential buyers is vital to securing the right deal for your MSP business. At the very least, a potential buyer should…
Demonstrate a track record of successful MSP acquisitions
Share your company’s values and vision
Offer a fair valuation and proof of financial backing
Commit to supporting your employees and maintaining operational continuity
Let’s talk feelings. Maybe you’ve determined that your MSP is worth selling. Maybe you’ve got a few interested buyers. Maybe you’ve even received an offer. But nevertheless, you’re not sure you’re ready. You don’t feel all that ready…
Look, we get it. Selling the company you built from the ground up is an emotional experience – and one of the biggest decisions of your life. You’re going to feel things. A lot of things.
But the truth is, you’re likely never going to feel completely, one-hundred-percent ready to sell, the same way most parents don’t ever feel totally ready to send their kids off to college. But when the time’s right, the time’s right.
This isn’t to say you should ignore your feelings. If you feel profound doubts about a particular potential buyer, for instance, listen to your gut! You don’t want to sell your MSP to the wrong buyer, because it could leave you with a raw deal and your clients up a creek.
But general nervousness about the prospect of selling your MSP is completely natural and to be expected. You’re only human! So let yourself feel – just don’t let your feelings stop you from seizing a golden opportunity.
A Unique Opportunity to Talk Strategy
It’s no secret that we’re involved in M&A here at The 20. In fact, at the time of this writing, we’ve completed over 30 MSP acquisitions – and we’re looking for more quality MSPs to join our growing team!
The secret to our M&A success is no secret – our approach makes things easy and brings unique benefits to MSP owners and their teams.
Want to learn more? Book a 1-hour meeting with Tim Conkle, CEO of The 20 and the visionary behind our unique consolidation strategy. Tim can walk you through what makes The 20 unique among M&A players, as well as provide you with feedback on your current exit strategy.
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Stay tuned for the second installment in this two-part series, where we’re tackling the question of what makes an MSP ‘sellable.’ Till then, browse our freshly launched MSP acquisitions page for free resources and no-nonsense guidance.
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!
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.
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.
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.
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.
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.
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
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.
Describe your approach to helping MSPs in 3 words.
Empower, Enable, Support
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.
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.
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.
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.
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.
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.
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?
2023 was a big year for The 20 – a year filled with acquisitions, innovations, new partnerships, and tremendous growth. It went by just like that, so we figure we’d better take a moment to slow down and reflect on all that’s happened. Sure, we want to reach new heights in 2024, but not without first pausing to enjoy the view and see how far we’ve come.
So join us, as we recount the milestones and moments that defined our company’s journey in 2023…
The Year in Numbers
Stronger together. More than a team motto, these two words are a perfect encapsulation of what makes our company work. We don’t just work hard; we work together. And together, in 2023, we got a lot done:
Our Support Desk crushed it, closing over 109,000 tickets. We rebuilt our service delivery model from the ground up back in 2021, and now, two years later, we’re reaping the full benefits of these structural changes and experiencing newfound operational efficiencies that make both our technicians’ and our end clients’ lives immeasurably easier.
And speaking of end clients, we’re serving more than ever before. Last year we acquired 13 MSPs as part of our ongoing mission to build a true national MSP with unmatched scale, adding end clients in 46 different states and entering 26 new markets in the process.
To keep up with all this growth, we welcomed 110 new employees to The 20 team. We’re getting bigger, but more importantly, we’re getting better – adding talent and resources so we can aggressively scale our offerings without sacrificing an ounce of quality on the service side.
Our dramatic growth and unique M&A strategy have garnered significant industry attention; in 2023, The 20 was featured in 27 articles and publications, and received multiple industry awards.
We believe an important part of being an industry leader is playing a proactive role in education and thought leadership, and in 2023, we were delighted to host 30 webinars and 25 events, produce 61 videos, and publish 38 blogs. Another bright spot was our world-class marketing team, who produced hundreds of pieces of marketing collateral for MSPs in The 20 MSP Group, helping them stand out in our crowded industry.
Of course our favorite event of the year was our own annual VISION conference, which took place in August and attracted 300+ attendees. The theme for VISION ’23 was taking an MSP from good to great, and we were determined to go above and beyond to give MSPs an unforgettable experience. Even with that lofty goal, we were blown away by how everything came together at this year’s conference. A huge shout-out to everyone who played a part – attendees, speakers, sponsors, and of course, all you MSPs striving for greatness. We hope to see you again at VISION ’24, taking place this August in Dallas, TX.
2023 was also a year of new partnerships and offerings. The 20 teamed up with several industry-leading vendors, including Pax8, CloudRadial, and Zapier, and we launched EasyIT4U a unique month-to-month IT services membership designed specifically for small business owners and solopreneurs.
Finally, in 2023, The 20 achieved a significant milestone by securing its very first US patent, receiving Patent No. 11695779 for “User Management System for Computing Support,” our novel approach to user authentication and the key innovation behind our ID 20/20 software. In the age of cyberattacks, we’re proud to break new ground and offer organizations and individuals a powerful method for repelling social engineering attacks, which continue to wreak havoc in both the public and private sectors.
Lessons Learned
What did 2023 teach us?
Well, it taught us that planning is great, but adaptation is crucial. Plans are pretty, but life’s messy, and success will always require a certain amount (usually a whole lot) of thinking-on-your-feet.
2023 also taught us – or reminded us, rather – that even when competition is stiff, an MSP can always stand out by delivering an unforgettable customer experience.
This brings us to the biggest and most important lesson of 2023, a perennial lesson that we’re always happy to share. Ready?
People matter. If you want true success in this MSP game, put your people front and center. End clients, employees, partners – remember the real people behind the contracts. Because they are where excellence comes from. Not your processes. Not your tools. It’s your people who will make your MSP great.
On that note, we want to close by saying thank you to all of the people who made The 20 great in 2023.
Thank you, end clients, for trusting us with your businesses. You put your livelihoods in our hands and give us a chance to do what we’re passionate about.
Thank you, vendors. This industry is big and complex and impossible to conquer without help. Your expertise and unique offerings make life easier, and your innovations are a constant source of inspiration.
Finally, a Texas-sized THANK YOU to the 170+ MSPs who belong to The 20 MSP Group. When we started The 20, we had a vision for a community of likeminded business owners who push each other to be better. Y’all have become so much more than that, and it’s an honor to know you and grow with you.
