2020 will be memorable for lots of reasons from the terrible and grief-stricken to the euphoric and memorable depending on your own personal and business experiences.
But isn’t that the same for every year? Everyone has highs and lows. The only difference is that as a nation or planet if you will, we have shared the impact of a global pandemic.
Now, in the IT industry, and specifically the MSP space, you’re likely to have had one of the best years yet to get the attention of your clients and prospects to the importance of technology. How you turn that into long-term results in terms of increased scale and profits depends on how you have invested your time and cash.
Unfortunately, and as you’ll know if you’ve read my MSP Journey and Three Pillars documents, the majority of MSPs, will stay pretty much where they are; assuming they survived the sudden drop in cash flow from reduced projects in the summer. They will have survived having worked hard to drive their business through the pandemic and are now hoping 2021 will be a better year as we, hopefully, ease out of these repetitive lockdowns. However, that isn’t guaranteed as there is a potential recession on the horizon together with the impact of Brexit and likely rising inflation. The challenge is that, whilst most MSPs have survived, they are not structured nor thinking in a way to reap the rewards of how technology is so much more important to business owners than ever before.
The impact is that they will stay at the heart of their businesses continuing to drive it hard but missing the opportunity to scale it up to be more profitable with less effort from themselves. From IT being a grudge purchase, business owners for the first time ever, are now willing to listen to how technology can strategically protect and enhance their businesses. But most MSP owners will miss the opportunity because they’re too busy running their own business.
The stats are consistent on this. Ninety-six percent of MSPs continue to never exceed more than £1million in revenue with the associated gross profits (50%+ minimum). This means they never have enough scale (profits) to confidently invest at the levels needed to lift themselves out of the detail to lead the business and turn it into a real asset. One where the profits are not reliant on the number of hours you work yourself.
In addition, they are not having the time to change the relationship with their clients to capitalise on the new opportunities to deliver technology. This is leaving, in some cases, hundreds of thousands of lost revenues on the table – and this is in MSP’s only turning over £400-800k themselves.
So, will you make 2021 your best year yet? We all go into every New Year with renewed vigour and hopes for a better more successful year, however…unless we choose to change something fundamental within our relationships, health, business then we are likely to get the same results as last year. A cliché I know. But one we all know is true.
I wrote a blog a few years ago about the sleepwalking masses. Most humans operate on auto-pilot, just as our breathing does. We get up, go to work (in the next room), come home, eat dinner, watch telly, go to the gym (if we’re lucky) without really thinking about it. It is not until something happens to make us realise that we’re unhappy or need to earn more money or have a health shock that we’re jolted into changing what we do. Unfortunately, a ‘new year’ is never enough to sustain the change for long.
Every conversation I have with a new MSP is along the same lines: ‘I’ve been doing this for 6/10/14/18 years and I’m feeling like I’m stuck. I know I need more/better marketing, more leads, better systems, more staff to grow but I can never seem to find the time to do things differently.’ Honestly, this is the basis of nearly every conversation.
So, I ask you… what needs to change in 2021 for you to capitalise on the exciting changes that are happening within the MSP space? The risk is that, if you don’t embrace them, you’ll be left, at worst irrelevant and, at best, competing on price for the smallest of businesses who are likely to be narrow-minded and hard to work with. In 5 years time, IT Support is going to look very different from what it looks like today. In 10 years, you won’t recognise it as is hinted at by Comptia in this blog post.
If this blog prompts you to question how you can make 2021 your best year yet then don’t just continue to do what you’ve done every year. Stop and consider what you can do differently. Get a new perspective. Ideally, get yourself a group or work with an individual that can help stretch your thinking to consider how you can change. Ideally, they will then hold you accountable to doing the hard bit which is to take the action needed to get a better and different result. Without action, you’re just dreaming.
If I can help you start this process then get in touch on this page, book an Accelerator Call and let’s get you planning how to make it so!
PS: Whenever you’re ready, here’s four ways I can help you scale your IT/MSP to give you more money, time, and freedom building a business that works for you rather than you for it so you can live life on your terms.:1)Join the Scale With Confidence IT/MSP Free Facebook GroupIt’s our new Facebook community where smart established IT/MSP owners learn to build a business that works for them rather than them for it – more profit, more time, and more freedom. — Click Here2) 36 Ideas to scale your IT/MSP with confidence:These ideas will show you how to harness your business to work for you, maximise your revenue and install the capacity to get more from your team. You can access them here.3) Understand where you are on the MSP Journey:There are four distinct phases to scaling and exceeding £1million in revenue or, if already there, to going faster in the MSP Journey. Find out which one you’re in. — Click Here4) Brainstorm with me:And if you want to get some 1:1 help, we can jump on the phone for a quick call, and brainstorm how to get your business working for you rather than you for it. So you can scale with confidence. Just book in here.