MSP Business School

In this episode of MSP Business School, host Brian Doyle engages with guest Andrew Jordan to uncover the financial fundamentals essential for MSP success. The discussion pivots away from mergers and acquisitions to focus on immediate financial strategies that MSPs can deploy for profitability. Andrew shares insights from his journey from CPA to CFO, underscoring the importance of proper financial management and the pitfalls MSPs often face when setting up their books.
The episode provides a detailed walkthrough of smart financial practices for MSPs, highlighting the critical distinction between costs of goods sold and expenses. Andrew explains the necessity for MSPs to accurately determine their gross profit to guide strategic business decisions. He offers guidance on navigating common financial misconceptions and emphasizes the transformative impact of having a competent financial advisor. By emphasizing the personal side of business finances, Andrew encourages MSPs to shift their focus from survival strategies to sustainable growth and operational efficiency.
Key Takeaways:
Accurately differentiate between costs of goods sold and expenses to maintain a clear financial picture.
Gross profit margins of 30-40% are indicative of healthy MSP operations.
Understand and utilize financial statements as strategic tools, not just for tax filing.
The key to business growth includes seeking financial mentorship and establishing a trusted partnership with an accountant or fractional CFO.
Effective financial management can lead to the freedom of time and a well-balanced work-life dynamic.
Guest Name: Andrew Jordan
LinkedIn page: https://www.linkedin.com/in/andrew-jordan-cpa/
Company: Jordan CPA Services
Company Website: https://www.jordancpaservices.com/
Show Website: https://mspbusinessschool.com/
Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/
Sponsor vCIOToolbox: https://vciotoolbox.com

Welcome to another enlightening episode of the MSP Business School, featuring the insightful Shawn Walsh from Encore Strategic. In this episode, host Brian Doyle and Shawn dive deep into the intricacies of building and selling a successful MSP business. Shawn shares his unique transition from law enforcement to the world of MSPs, leveraging his skills in computer forensics to grow a thriving business which he ultimately sold to a private equity firm. His current role sees him mentoring MSPs on effectively planning their exit strategies well in advance.
In a conversation rich with actionable insights, Shawn and Brian explore common pitfalls that MSPs face, particularly around valuation and the importance of planning for an exit from day one. They discuss the Value Builder Assessment as a tool to measure a company's worth beyond just EBITDA, highlighting the crucial role of building a robust sales engine and the dangers of underpricing services. Shawn emphasizes the need for MSPs to distinguish themselves in the marketplace, warning against straddling the line between being a price leader and a value leader.
Key Takeaways:
MSPs should plan their exit strategies early, ideally beginning 10 years before the anticipated sale.
The Value Builder Assessment can significantly enhance an MSP's valuation by focusing on multiple factors beyond EBITDA.
Building a sales engine independent of the owner is crucial for an MSP's sustainable growth and value.
Discounting services can undermine a business's perceived value; charge premium prices to ensure clients take the service seriously.
Differentiation in the MSP space is vital; focus on boardroom-level conversations to emphasize business goals over technical jargon.
Guest Name: Shawn Walsh
LinkedIn page: https://www.linkedin.com/in/encorestrategic/
Company: Encore Strategic
Company Website: https://encorestrategic.io/
Show Website: https://mspbusinessschool.com/
Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/
Sponsor vCIOToolbox: https://vciotoolbox.com

In this episode of MSP Business School, host Brian Doyle welcomes James Kudla, founder of Kalutasan, to discuss the nuances of outsourcing support from the Philippines for MSPs. James shares his professional journey from mechanical engineering to owning a successful MSP, before venturing into the world of providing high-quality outsourced resources. The episode offers a comprehensive look at the benefits and logistics of leveraging international labor to enhance capacity and efficiency for managed service providers.
The conversation highlights how strategic outsourcing can address common MSP challenges, including staffing shortages, increasing operational costs, and improving response times. SEO keywords such as "outsourcing," "Philippines labor," and "MSP staffing solutions" are interwoven throughout the discussion, emphasizing the show's focus on innovative workforce management solutions. As a seasoned industry professional, James offers compelling insights into how outsourcing from the Philippines is transforming the MSP landscape, by combining English proficiency and technical expertise to offer significant cost savings and operational flexibility.
Key Takeaways:
Outsourcing to the Philippines can lead to cost savings of up to 70% compared to domestic staffing, providing a competitive advantage for MSPs.
The culture and infrastructure in the Philippines have evolved significantly, making remote work efficient and reliable.
Many experienced IT professionals in the Philippines have substantial MSP experience, making them valuable assets for service providers.
James Kudla's own journey demonstrates the transformative potential of strategic staffing solutions in overcoming MSP challenges like staffing shortages and rising operational costs.
The partnership with Kalutasan is not just about filling roles, but about creating career opportunities and development for Filipino professionals, while strengthening MSP capabilities in North America.
Guest Name: James Kudla
LinkedIn page: https://www.linkedin.com/in/jameskudla/
Company: Kalutasan, Inc.
Company Website: https://kalutasan.com/
Show Website: https://mspbusinessschool.com/
Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/
Sponsor vCIOToolbox: https://vciotoolbox.com

In this episode of MSP Business School, host Brian Doyle sits down with technology consultant and advisor James Davis to discuss the evolving landscape of the MSP industry. They dive deep into the transition from traditional break-fix models to the more integrated role of technology partners. Davis reflects on his own journey through various facets of the MSP world, offering rich insights into the shifts and transformations necessary for survival in the current digital age.
Throughout the conversation, Brian and James explore the changing expectations of the modern client, emphasizing the need for MSPs to move beyond just infrastructure management to a more consultative role in business growth. They navigate the complexities introduced by AI and cybersecurity, advising MSPs to not merely add these as cosmetic changes but to fundamentally reimagine their business models. Davis stresses the importance of understanding clients' business challenges and aligning with their strategic objectives, a notion he refers to as becoming a "Technology Solutions Partner" rather than remaining a traditional MSP.
Key Takeaways:
Evolving Roles: MSPs need to transition from break-fix models to a comprehensive consultative role, focusing more on data, workflow, and clients' business needs.
Vertical Specialization: Emphasizing the importance of specialization, MSPs should consider vertical or horizontal approaches to better align with client industries.
Client-Centric Approach: Prioritizing client conversations and understanding their challenges is crucial for developing relevant technology solutions.
Skepticism of Industry Hype: Davis encourages skepticism of industry trends without real insight, urging MSPs to focus on client-specific needs over generic industry advice.
Transformative Opportunities: Viewing modern challenges as opportunities for transformational growth, with a focus on advisory services, strategic conversations, and rising above infrastructure management.
Guest Name: Brian Davis
LinkedIn page: https://www.linkedin.com/in/thejamesdavisaus/
Company: The TSP Adivsory
Company Website: https://thetspadvisory.com/
Show Website: https://mspbusinessschool.com/
Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/
Sponsor vCIOToolbox: https://vciotoolbox.com

In this insightful episode of MSP Business School, host Brian Doyle welcomes esteemed guest Dave Sobel to discuss the hot topics circulating at the recent GTIA event, ChannelCon, in San Diego. The conversation dives into the prevailing discourse around artificial intelligence (AI) within the Managed Services Provider (MSP) space. Both Brian and Dave reflect on the parallels between the current AI boom and historical tech transformations, like the Internet and cloud computing. The episode focuses on the need for MSPs to thoughtfully engage with AI, recognizing both the hype and the genuine business applications it brings forth.
The dialogue progresses to address the delicate balance MSPs must maintain between educating and collaborating with clients on AI strategies, avoiding a stance that might come across as overly risk-averse. With AI consumption models evolving rapidly and differently, insights about navigating these changes are provided, emphasizing a strategic approach that aligns technology with business outcomes. Dave Sobel points out that deliberate action is more critical than ever, particularly as the MSPs' advisory role grows in importance to help clients harness AI's full potential while managing costs proficiently.
Key Takeaways:
Evolution of AI in MSPs: Understand the AI journey, drawing parallels with past innovations such as the Internet and cloud computing, while planning deliberate and thoughtful integration strategies.
Strategic Positioning: MSPs should continue to position themselves as partners in AI's progression, providing expertise in selecting right tools and technologies that benefit businesses, without succumbing to the pressure of moving too hastily.
AI's Economic Impact: The economic dynamics of AI differ from traditional software; increased AI usage may lead to higher expenses. Thus, understanding consumption billing and its implications is crucial.
Customer Engagement: Proactive, collaborative conversations with clients about AI adoption and governance are essential, moving beyond fear-based tactics to foster innovation.
Profitability Focus: Rather than rushing, focus on sustainable, profitable growth, aligning technological advancements with clients' specific needs and risk tolerances.
Guest Name: Dave Sobel
LinkedIn page: https://www.linkedin.com/in/davesobel/
Company: MSP Radio
Company Website: https://businessof.tech/subscribe/
Show Website: https://mspbusinessschool.com/
Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/
Sponsor vCIOToolbox: https://vciotoolbox.com