Although there is a lot of talk about strategic growth in the IT industry, small IT business owners are often too busy to deal with strategy. They meet with key clients, read contracts, manage employees, sign contracts, handle marketing, step in to solve occasional customer problems, and more.
Yet quite a few MSP owners have recently become focused on the value of their business, noted Nick Moran, Associate Evangelism Director at ConnectWise.
“Private equity is coming here in a big way from North America and it’s causing a bit of a stir,” Moran told CRN Australia. “The numbers we’re seeing in the US are just going up and as money gets more expensive there, these firms are now coming here, knowing that while the market is a little smaller, the cost of doing business is ultimately going to be lower.”
“This doesn’t necessarily mean that every MSP is considering an exit, but many are now very focused on creating ongoing value within their organization for a possible future eventuality.”
Moran knows how difficult it can be for MSPs to find time for this type of work, and he will be part of a discussion about it when he takes part in a panel on “Leading Under Pressure: How to Be a More Productive Leader in 2024” at CRN Pipeline on August 15.
“For 29 years we did this work (at MSP Evolve IT and then Powernet IT Solutions) and then we sold and were able to meet all the requirements from that perspective,” Moran said. “But behind the scenes, it’s difficult to run an MSP. I would say it’s probably one of the hardest businesses to actually own and run and the business owners should give themselves a little bit of credit for what they do.”
And for some, it’s become more difficult. “It’s hard to be intentional about pursuing these strategies when there’s chaos here. You’re under financial and economic pressure and it’s crazy,” commented Moran. “For me, joining the IT Nation Evolve Peer Groups was an important step in building that business discipline and it was important for my peer group that I be accountable for the execution.”
Still, he encourages MSP owners to step out of the daily grind more regularly, and not just when private equity firms show up.
“Look at the companies that have disappeared over the years. At the end of the day, they were sometimes complacent. When you’re really profitable and doing really good work, it’s very easy to become complacent about what you’re doing,” he said.
“That exit or that end may come at a time they’re not prepared for. Exit opportunities sometimes arise unexpectedly, so if you’re intentional about creating ongoing value from your MSP throughout your journey, it can put you in a really great position.
This brings us back to the age-old workload problem, which will be a topic of discussion on the CRN Pipeline stage on August 15.
Nick Moran will participate in the session “Leading Under Pressure: Being a More Productive Leader in 2024” at CRN Pipeline on August 15. Send your question for the discussion panel to the Editorial staff of CRN Australia. Check out the pipeline agenda and register your interest in participating.
