Given the explosive demand for cybersecurity solutions , the growing regulatory compliance for data protection and security being mandated by governments , the IT labor shortage creating a greater demand for co-managed IT , businesses continually moving toward remote working environments or automation , and general reliance on IT , there ’ s no reason any MSP should be struggling right now to generate growth and profits .
Quite simply , demand is HIGH for managed IT and security . A few months ago , when I spent a day with Robert Herjavec , “ Shark Tank ” star and CEO of Cyderes — a $ 1.2 billion MSSP / VAR — he said his investors expect him to generate a 65 % YOY increase . 65 %! He said , “ That means if we merely double , we ’ re laggards in our growth !” Last year , according to our Expert in Residence Paul Cissel , who coaches for both Service Leadership and Taylor Business Group , the average MSP grew 16 % this past year . That means if you grew only 10 %, you didn ’ t grow but lagged by 6 %.
So , this brings up a good question . How is it possible that any MSP can be unprofitable or struggling right now in THIS industry with THIS demand ? Are they lazy ? Stupid ? Unlucky ? Dealing with an unusual circumstance preventing them from thriving ? All of the above ? Let ’ s dig in …
Why Are You In Business ?
I ’ ve often asked business owners , “ Why are you in business ?” Most actually have to stop and think about the answer to that question . For some , they ’ ve been doing their “ thing ” ( running their business ) for so long that they forgot why they started in the first place … and now , it ’ s just what they do , like a train chugging along the track , not really thinking much about what they ’ re doing , where they are going , and why they are doing it . Wake up . Make the doughnuts .
But when they finally muster up an answer to the question , “ Why are you in business ?” they lie and give a Pollyanna reply of “ To help people ” or “ To make a difference in the world .” A few will say , “ To pay the bills ,” or “ To avoid having a boss ,” which are far more honest answers .
A few might say , “ To make money ,” but when you press them with a few more clarification questions about their answer , you ’ ll find out they have no real goals about “ how much money ” they need to make and what they want to make . They , like the others , are just chugging along day after day , doing the work but not really driving toward a specific goal of valuation or financial freedom . They too wake up every day to “ pay the bills ,” not to get rich , not to achieve financial freedom . That IS the extent of their ambition for running a business that drives the growth and profitability of the business itself .
Success In Business Doesn ’ t Happen By Accident .
I don ’ t have a pet parrot because I have no interest in owning one . So it goes with anything in life — if you have no interest or desire for something , you won ’ t possess it or pursue it . We give priority to the things we most want . So , if you start a business with the ambition to merely “ pay the bills ,” and you have no honest , truthful ambition to grow your valuation and secure high profits and financial freedom beyond “ paying the bills ,” you won ’ t .
I ’ ve been talking to MSPs about how to make more money ( profits ) for over two decades , giving them actual tools , templates , strategies , and example after example of how to raise their profits , but only a small percentage actually follow the advice to the letter and secure HUGE leaps in profitability . Many raise them a little and secure a bump in profitability , but not dramatically .
They hold back , even after seeing some success . Why is this ? Because their honest ambition is not to “ get rich ” or become financially free . Their TRUE ambition is dialed all the way down to make enough just to pay the bills . Their ability to make bigger profits is throttled by the greater desire to :
Avoid uncomfortable conversations with clients about raising their prices
Avoid the guilt they feel in raising prices Avoid losing clients ( fear )
Avoid the work and frustrations that come with growth ( hiring people , more complexity , etc .)
They also lack confidence in themselves and don ’ t feel they deserve more money . This doesn ’ t make them “ stupid ”
Holisttic cybersecuritty , redefined
Exclurivb ffber fe ebember
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