How MSPs Increase their Managed Services Efficiency to Scale Faster

Be Different. Deliver Excellence.

Nov 20, 2018

Video Above: MSP Webinar with Collabrance and Taylor Business Group on "How to Increase Your Managed Services Efficiency to Scale Faster."

4 Ways MSPs Can Overcome Challenges to Grow Their Business Efficiently

Ingram Micro shared “One of the most vexing challenges faced by executives is determining how to best grow their business,” citing the following MSP stats:

Image Above: Slide shared at Ingram Micro One Partner Conference MSP Keynote (October 2018).

  • 80% of business will hit a growth stall at some point, and only a small percent will ever recover.
  • Only a small percentage of companies ever grow larger than $5 million in annual revenue.
  • Many companies focus on being the 'biggest' vs being the 'best at consistent growth.'
  • It can take 2-4 years for a company to figure out how to create 'new growth' engines and execute the strategy at scale.

Last week I presented a webinar with Dennis O’Connell from Taylor Business Group to MSPs on "How to Increase Your Managed Services Efficiency to Scale Faster." We both have the opportunity to talk to hundreds of MSPs across the country, and are exposed to the managed services best practices (and pitfalls to avoid) they implement to scale their business faster. Collabrance also recently attended industry IT events that included ChannelPro SMB Forum, IT Nation and the Ingram Micro Partner Conference. We heard from a lot of MSPs who are stagnant and are not seeing the growth they want to.

Dennis stated, “Most MSP companies will run into a wall sometime between $1.5-5 million when they can’t grow efficiently anymore.”

During our recent webinar, Dennis and I discussed why MSPs are experiencing stagnant growth in their managed services business, and shared best practices on how to overcome these challenges. Here are the top 4 reasons MSPs shared why they struggle to grow, and items to consider to overcome.

MSP Growth Challenge #1 - Owner focus in the business vs. on the business

Solution: Outsource to a Master MSP

We often see the owner of an MSP wears many hats. Most MSP owners enjoy the technical details of running their IT business and want to be involved. We don’t blame you! You built this business from the ground up, and you want to make sure it succeeds. However, being overly involved and in the weeds can actually hurt your business growth. To avoid finding yourself in this position, consider trying the simple yet challenging task of delegating. Outsourcing can be a great option for MSP owners. It allows an owner to offload tasks so they can focus on strategically growing their business on things like revenue generating activities (i.e. project work). Master MSPs can help you with both product offerings and services you need to effectively grow your business. This can include vendor management, onboarding assistance, virtual sales managers, access to industry thought leaders and peer groups, etc.

MSP Growth Challenge #2 - Unstandardized offering

Solution: Standardized Technology Stack

When Collabrance first started, we eagerly took on everything and anything IT and quickly found that it was not scalable model. We joked that if you could spell “IT” - we would accept you as a Collabrance Partner! We eventually took a setup back to re-evaluate what good looks like which resulted in our standardized technology stack offering. We discovered a standardized model allows us and our partners to efficiently provide a consistent customer experience and improved customer satisfaction.

MSP Growth Challenge #3 – Ineffective (or no) managed IT sales process

Solution: Sales Simplicity Seminar

When you can provide a consistent managed IT experience on the back end, you can confidently sell your managed IT solution on the front end.

Confidence is key to a sales person success. So is having a proven sales process.

Knowing what questions to ask, who you should talk to, and what to look for at every prospect meeting moves opportunities through the sales funnel faster and gives you the confidence to walk away from those who are not a good fit. Following the same steps each and every time will ensure you have the best shot at closing every managed IT deal.

A managed IT sale is different than your traditional sale. To help MSPs, we offer an entire sales training that focuses on how to sell everything-as-a-service to help MSPs increase their sales.

MSP Growth Challenge #4 - Wrong resources

Solution: PathShare® HR Services

Attracting, hiring and retaining good employees is becoming more of a challenge every day. On the flip side, this can put us in a position to keep resources who are not the best fit for the role. The question to ask yourself is are you better off with or without them? As Dennis O’Connell stated, “Sometimes the people that got you here, are not the people to get you there.” It is important you have the right team backing you. Without the right team, you will never experience the growth you want to. Consider using a third party like PathShare (a GreatAmerica Company) to help you get the right people in the right positions using their managed IT success profiles.

MSP Case Study on Scaling Existing Business Faster

Ultimately, you will know what is best for your business. If you are experiencing stagnant growth in your managed services business, here is a case study that shares how an established MSP found a way to increase their managed services productivity, performance and profitability faster after partnering with Collabrance.

The ETS Story


Category: Business Practices

About The Author

Hannah Erb

Hannah Erb, Director of Sales, is responsible for building the strategic vision for sales and marketing while providing business planning, education, training, and sales assistance to partners. She is also responsible for originating new partnerships for Collabrance. She was recognized as one of 2019's Women of the Channel by CRN, a brand of The Channel Company. Hannah started at Collabrance in 2013 as a Strategic Business Advisor. In 2014, Hannah was nominated by her peers and won Rookie of the Year, and in 2015 became a member of the 100% Sales Achievement Club at GreatAmerica. Hannah earned her business degree in Marketing and Management Information Systems from the University of Iowa.