https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Strategy


If I Were Launching an MSP Now | Myles Keough

  • Written by Vendor
  • September 20, 2017

Myles Keough, CEO of Mansfield, Mass.-based Spade Technology shares three suggestions he’d apply if he were launching an MSP from scratch today:

1. Strive for profitability right away– When starting off, focus on having a high profit organization.

That profitability allows you to do things that make it easier to bring in more clients faster, to have better results, to differentiate yourself, to create a better culture, to attract better people.

That profit engine is what really drives all that. 

We often worry about getting the revenue in now, build the company – knowing we’re going to lose some money, but thinking we’d be profitable later.

The bigger you get, the harder it is to change your model to support that profit.

Oftentimes, you start off adding clients and figuring out how to make it work.

Because you’re not profitable enough, you can’t have the staff that you need.

You aren’t delivering the high-quality work because you have to cut corners.

You don’t have the tools to be more efficient in order to do automation and to provide additional services and features to your clients.

You don’t have that because you don’t have the profit to be able to afford those things. You can’t hire well enough ahead of time to train and get employees up to speed as you’re onboarding new clients.

So you create this culture of under-delivering as acceptable because there’s no alternative – because you don’t have the profit to deliver what you want to deliver. 

2. Bring on the right clients – Everyone worries about growing their business by adding more clients.

But the fact is, for example, if in a year you add ten A clients, ten B clients and ten C and D clients, you’re going to spend an equal amount of time on all of them.

And the C and D clients are going to cause you to get distracted from your A and B clients.

And oftentimes your C and D clients are less profitable.

They don’t believe in you or your way, they don’t buy into your process.

Therefore, they are not doing project work with you.

They are not doing the right things to make their environment quieter, their users happier, their employees more efficient and grow their business.

Everyone is worried about getting as many clients as they can, but the big miss there is that they’re going to be better off having half as many clients that are profitable, good-fit clients than have twice as many clients that aren’t.

Bad clients are going to be like a cancer in the organization.

It’s going to affect employees’ morale, all your A and B clients, and your bottom line. Starting today, I would focus a lot more on being selective as to whom I would do business with, as opposed to doing business with anybody I can sell.

3. Jumpstart sales right away – A lot of MSPs start out where they’re so worried about having the best service possible and they don’t worry at all about sales.

What happens is that they only sell when they need a client.

There’s a couple drawbacks to that.

You create a culture that isn’t used to onboarding, as opposed to having an organization that’s built so that it can handle onboarding customers without forgetting about its existing client base.

We went through this, where we would sell in these binges.

We’d sell to ton of clients, then we’d turn and focus on onboarding them.

So we’d spend three months selling clients and then six months onboarding them, and you’re shifting your resources back and forth.

Just make it part of the rhythm.

The analogy I give to my team is, it’s like if you’re riding a bicycle and you’re coming up to a hill.

You wouldn’t want to come to a complete stop before you start going up that hill.

But if you’re consistently going at a certain speed, the hills become easier to overcome. That’s what it should be like when you’re used to bringing in new clients.

It’s just part of what we do: every month and a half, there’s a little hill and you get over it. The company is built to absorb it.

You can’t have that operationally unless you’re consistently focused on sales.

 

Editor’s note: Comments are edited to improve readability.

If you’d like to be featured on a future “If I Were Launching an MSP Now,” email us with your name, company name and phone number at [email protected]

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Strategy

Related


  • Remote Worker, Telecommuter
    Productivity During ‘Work from Wherever’: Choosing the Right Back-Office Tools for a Distributed Workforce
    In the same way cloud-based solutions exist for CRM and support, back-office functions can move to the cloud.
  • Security Operations Center SOC
    Kaseya Buying RocketCyber to Improve MSPs' Security Capabilities
    This acquisition "catapults" Kaseya even further ahead of its competition, the company's CEO said.
  • The words Helpful Tips inside a box next to a cartoon megaphone.
    From Salesperson to Trusted Adviser: 3 Tips for Mastering Consultative IT Sales
    Adapt sales techniques to thrive in today's changed landscape.
  • Network monitoring
    AppNeta Launches Global Alliances Program
    AppNeta adds performance observability to its partners' existing solutions.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Racially Charged Tweet Costs Alteryx CRO His Job
  • AvePoint Taps Ingram Micro, Palo Alto Networks Vet to Lead Channel
  • Vendors: How Do You Measure a Partner Relationship?
  • Public Sector IT Funding Outlook for 2021--and What It Means for Our Reseller Partners

Galleries

View all

Channel Partners Virtual 2021 Is the Hottest Ticket in Town

February 26, 2021

Industry Perspectives

View all

The “Roaring 20s” Are Coming

February 25, 2021

Three Ways MSPs Can Improve Supply Chain Security

February 24, 2021

SASE: The Key to Mitigating Business Transformation Risk

February 22, 2021

Webinars

View all

A Partner’s Perspective on Channel Success in 2021

March 17, 2021

XDR and Why it Matters to MSPs

March 24, 2021

Top Security Trends Impacting Technology Security Providers In 2021

March 25, 2021

White Papers

View all

Ready To Add Cutting Edge IoT Solutions To Your Portfolio?

  • 1
February 25, 2021

What Is The Value Of Distribution For The Internet Of Things?

February 25, 2021

The Internet of Things (IoT): Where do You Begin?

  • 1
February 25, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

Amazon WorkSpaces @awscloud DaaS client will be available on @IGEL_Technology virtual endpoint client OS.… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

.@VMware cutting more workers in California as part of ongoing #workforcerebalancing. #layoffs… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

#CPVirtual is March 2-4. It’s the hottest ticket in town — any town, since it’s 100% online — so make sure you have… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

.@datto, @ThreatLocker partner to streamline #MSP secure business operations. dlvr.it/RtYvJK https://t.co/nKGnwbblNO

February 26, 2021
ChannelFutures

Infographic: Why Partner with Sierra Wireless and GetWireless? dlvr.it/RtYh1m https://t.co/KcBFzXIx7l

February 26, 2021
ChannelFutures

Infographic: The Sierra Wireless Essential Series dlvr.it/RtYgxv https://t.co/CatxbRHzXr

February 26, 2021
ChannelFutures

#Threatprotection is no small matter for #MSSPs. Find out what vendors say you have to do this year to protect your… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

Cloud strategies and cybersecurity are key, and #COVID19 will have more impact than #Brexit on U.K. channel, says… twitter.com/i/web/status/1…

February 26, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X