TubbTalk 141: Real-World Advice on How to Grow a Profitable, Efficient MSP Business

In this episode, Richard speaks to Darren Strong about how to grow an efficient MSP business. Darren is the managing director of Focus Technology Solutions, a managed service provider based in the North of England.

Plus, he’s also built and managed multiple MSPs and founded Scalable MSP. They  consult, configure and implement established MSP best practices to help managed service provider businesses accelerate their profit. 

An Interview With Darren StrongHow a PSA Tool Supports Efficient MSP Processes

If you want to run an efficient MSP business, you need strong processes in place, says Darren. “There’s not much that can’t be fixed with a process. But the right PSA (professional services automation) tool makes all the difference.

“We find that partners use only 10% of the things their PSA solution can help with, which makes it a huge expense. You need to learn how to use it in the right way for your needs.

“I’m a big believer in buying a PSA that’s developed and used by MSPs and the wider community. And you have to adjust your business to fit it. Because it’s much harder to try to bend an off-the-shelf solution to fit your business.”

Using Scalable to Benchmark Progress and Run an Efficient MSP

Any MSP who works with Scalable has an audit of their core systems. That includes PSA, RMM (remote monitoring and management), documentation and so on. Then, that’s benchmarked to their framework.

Scalable then support their clients to tweak their systems to ensure they’re optimised. “We ensure there’s a solid leadership team, established processes and the direction of travel. So if they want to sell it, they know that it’s doable. Or they can take a step back but still grow.”

The Main Obstacles to Growing into an Efficient MSP Business

Darren says that many owners of successful businesses have a technical background. “So it’s easy for them to get involved in tech issues and processes. You feel comfortable doing that. But to grow, you need to stay away from that.

“Instead, have a process in place and focus on the sales and marketing side. And more importantly, be a leader and mentor for your employees. As the owner, you need to support and build the leadership team so they can help you to succeed.”

Working with an MSP Coach Who Runs Their Own MSP

Many MSP owners might be concerned about working with a coach who’s also potentially competition for them. And Darren admits that people have suggested he sells Focus Technology Solutions.

“But I enjoy the work and seeing the business grow. And more importantly, our experience as an MSP is what makes the consultancy service different. We have multiple frameworks and we execute them for you.

“Most consultants just have one and you have to do it. But we’ve used more than one framework in our MSP. Say you work with a consultant who sold his business in 2019. He has no experience of the pandemic and remote working.

“And he doesn’t understand the current challenges in business of increasing cybersecurity threats or the tech talent shortage. So running our MSP keeps us in touch with the latest developments. We’re not teaching and executing an out-of-date structure. My MSP grew by 46% last year, so what I’m doing and teaching works.”

How Darren Juggles His Business Responsibilities

It’s not unreasonable to assume that running two different businesses requires a specific focus, and Darren says it’s a common question. However, he started Focus with the intention of growing it as quickly as possible.

And to facilitate that, he developed the processes and structures from day one. “It had to survive without me being there. Because I was often busy facilitating peer groups and away for weeks and uncontactable.

“So the business was built and structured that way. I do the mentoring and strategy building, and the rest is managed by the team. About 5% of my time is at the MSP, so I have more time available for consultancy clients.”

Darren’s Top Tip for MSPs to Grow and Scale

*This episode was originally recorded in November 2023, so Darren’s advice is specific to ending the year ready for what’s next.*

“You need to know where you are now, and what your target is for the next five or 10 years. What does that look like? And then you need to work out a plan to clearly communicate that to your team so that the new year is a success.

“So many MSPs avoid doing this, or they do it two months into the new year. But even if your financial year isn’t the same as the calendar year, you should still be planning for the next year. And there are a few things to consider.” These are:

FinancialsSales commissionServicesClient personaOpportunities to cross-sellMarketingOperations and the teamAvailable resourcesTeam communicationsHow to Connect With Darren StrongFocus Technology Solutions LimitedFollow Focus Technology Solutions on LinkedInLike Focus Technology Solutions on FacebookConnect with Darren on LinkedInScalable MSPHow to Connect With MeSubscribe to TubbTalk RSS feedSubscribe, rate and review TubbTalk in iTunesSubscribe and rate TubbTalk on SpotifyFollow TubbTalk on iHeartRadioFollow @tubblog on TwitterMentioned in This EpisodeConnectWiseConnectWise IT Nation EvolveBook: Bob Burg: The Go-Giver: A Little Story About a Powerful Business IdeaTubbTalk episode 117: How to Grow Your Business in an MSP Community Like IT NationPSA tool: Datto AutotaskThe Tech TribePSA tool: SuperOpsPSA tool: HaloSteve RiatMit PatelRaja PagadalaBook: Alex Hormosi: $100M Leads: How to Get Strangers To Want To Buy Your Stuff (Acquisition.com $100M Series Book 2)Book: Alex Hormosi:$100M Offers: How To Make Offers So Good People Feel Stupid Saying No (Acquisition.com $100M Series)You Might Also be Interested inWebinar: SuperSummit Virtual: Strategies for Successful MSP Growth and ScaleSecurity, Sales and Leadership Trends Led the Way at CompTIA EMEACon 2023Podcast: How Monitoring Your MSP Metrics Leads to Profit and Growth

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