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!