ENTREPRENEURIAL TOOLBOX CONT .
“ An MSP with 60 to 70 good customers can easily get to a million net IF they are pricing properly and attracting the right client base at the correct margins .”
mark despite the fact that the industry is in massive growth , being driven by regulatory compliance , ever-rising cyberattacks , and a huge IT labor shortage . Many of these under- $ 1-million businesses have been operating for years — some for decades — but still never seem to figure out how to scale and grow .
Many make the mistake of thinking that if they just improve the product , THEN they ’ ll be rewarded with enormous success . But does McDonald ’ s win because their food is so good , their atmosphere so luxurious and inviting , and their employees so customer-focused ? Of course not . The food is tolerable at best . And you ’ d never think of McDonald ’ s as THE place you ’ d want to go on a special occasion . In my opinion , Black Rifle Coffee is no better than just about any other coffee I can buy at the local grocery store or get shipped to my home from 100 other coffee roasters who sell homedelivery coffee . How the heck did they carve out nearly half a billion in sales from an already overcrowded marketplace ?
It ’ s NOT * Just * About The Product Or The Service
Here ’ s what you need to take from the above examples : It ’ s not what you do but how you run the business that makes the difference . Success in business does NOT require you to have an exciting , new , revolutionary breakthrough or a UNIQUE “ thing ” to sell . It often doesn ’ t even require you to have the BEST product or service . We can clearly see that it ’ s very possible to build one of the most valued companies in the world selling a complete commodity in an extremely competitive and saturated marketplace , where your product isn ’ t even a necessity to buy ( McDonald ’ s ) and / or where your customer can easily do it for themselves ( can you say Keurig ?). How ? By packaging , pricing , and presenting it differently AND coupling it with a very well-run business . Let me unpack this a bit more …
Black Rifle is a coffee provider , but it ’ s not REALLY about the coffee . It ’ s about their social stance on serving coffee and culture to people who love America and honoring the men and women who protect our country . It ’ s about an ADVOCATED POSITION . Of course , this company would not have gotten to a $ 1.04 BILLION market cap with simply an advocated position . It undoubtedly required a sophisticated leadership team , solid strategy , and brilliant , consistent execution . That said , it was their unique approach and messaging ( USP , or unique selling proposition ) that got them established and still provides a means for significant differentiation , despite the fact that they ’ ve birthed a number of copycats .
I see a lot of business owners making their lives a lot more difficult than necessary by myopically focusing on the product or service , thinking they need marketing campaigns that sell THAT exact offering they have , INSTEAD of starting with a clear vision of who their customers are , then building the product for that specific avatar . They make the mistake of going wide and attempting to appeal to a much larger audience , afraid of targeting a particular customer , watering down their messaging and uniqueness , thereby appealing to none .
Customer Selection And Development
Most businesses don ’ t even need that many customers in order to do well . An MSP with 60 to 70 good customers can easily get to a million net IF they are pricing properly and attracting the right client base at the correct margins . The linchpin is the quality , DEVELOPED customer , not just any customer who can fog a mirror and wave a dollar and who is permitted to buy whatever they want like a spoiled child because you fear correcting their bad behavior . Then you ignore them unless they call you for something . The best customers won ’ t tolerate this — and the best MSPs know this and build organizations that the best buyers want to do business with .
At Boot Camp , I ran a panel with several highly successful CEOs of MSSP businesses . Universally , they talked about being strategic on customer acquisition , carefully selecting who they
12 | MSPSUCCESS . COM