Some may say that MSPs are prone to "Magpie Syndrome", the desire to play with shiny new things. But what benefit is this having on your business? Jason Kemsley, Director at Uptime Solutions talks about why the constant pressure to strive for perfection may not be helping.
Let’s start by making sure we agree on the premise of this entire article, would you agree that in our MSP industry many business’ are created by technicians that convert to business owners? Would you agree this could mean we could learn to be better with our time?
As a business owner or leader, we often let our emotions take control and guide decisions away from the logical part of our brains. Salespeople capitalize on these emotions, probing for weaknesses to open up possibilities in discussions.
In my nearly 15 years as a leader in the MSP space, I've observed many business owners getting distracted by the constant pursuit of perfection. Whether it's adopting a new PSA, renaming your stack, or navigating through portals, these activities may not lead you closer to your end goal but still consume valuable time.
In an industry that's rapidly evolving, change is abundant. I acknowledge the numerous events happening almost every week and the proliferation of LinkedIn accounts by experts. So why is this article essential, and why am I writing about it?
The truth is simple: I want MSPs to succeed, for the benefit of all.
The reason for writing: Weekly, I encounter MSPs who have accomplished a lot but remain distant from their life or business goals.
Let's step back. In any industry, aspiring to greatness involves a straightforward approach: study industry leaders, delve into their businesses, understand what they've done, and formulate your own strategy. While not foolproof, it's a common practice in other industries; for instance, if you wanted to start an accounting firm, you'd study the top 5 to grasp key insights.
Applying this principle to our industry, examining successful global players reveals valuable lessons. A few examples include:
Cultivating strong bonds with key vendors
Avoiding frequent changes to their tech stack
Attending selected events strategically
"Yes, but Jason, those are obvious."
True, but these are challenges I see within our community.
Over the past 14 years, some MSPs have changed their tech stack over 10 times in a year, often without signing new customers or achieving significant growth.
Now, let me take you through an example and leave you with three key questions to ask before making any big decisions in your business.
Scenario: An MSP considers replacing its PSA with a new tool. Let's explore the true cost of this change:
PSA Current | Future PSA | |
Cost per Month | £65 | £45 |
Number of Licenses | 4 | 4 |
Many might apply this logic to justify the change:
£20 cheaper per month x 4 licenses = £80 a month saved + NEW SHINY TOOL –
WOOOHOO!
Now, let's reveal the true ROI in an example format:
£80 per month saved from licensing
Total time for implementation: 10 hours @ £85 p/h
Total time tweaking post-implementation: 2 hours @ £85 p/h
Total cost - £1020
These are conservative numbers, but even with these, it would take 13 months to benefit from the cost savings. This analysis doesn't consider service disruption risk or potential earnings lost due to distractions.
As an industry, we often struggle to value ourselves properly in the ever-changing market. Even though your time may not cost you money directly, you should start thinking as if it does!
As a leader, your time is your most valuable asset, so don't just give it away.
Three Questions to take away:
What decision would benefit my customer the most?
What choice would drive us towards our goal?
What would my business idol do?
While the third question may seem silly to some, accountability is crucial. Many MSPs are solo leaders without someone to hold them accountable. In such cases, think of your business idol, like Jeff Bezos, for guidance.
When facing a tough decision, ask yourself, "What would Jeff do?" The goal isn't to predict his actions but to interrogate your thought process with an external perspective, removing the emotion discussed earlier.
Jason Out.