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If I have learned anything from my conversation with Tim Conkle, CEO of The 20 MSP, it’s that collaboration, innovation, as well as strong sales and marketing have become essential ingredients in the managed service provider (MSP) growth recipe. It doesn’t hurt when you’ve got the capital to accelerate that expansion through acquisitions.
The Power of Collective Action
The 20 MSP showcases the strength of collaboration among MSPs. By coming together, these organizations can simplify their operations and reduce redundancy. Centralizing key services, such as legal contracts and help desks, enables members to focus on their core competencies—delivering high-quality managed IT services (MITS). Other MSPs can benefit from fostering similar partnerships, allowing them to leverage shared resources and enhance their operational efficiency.
Strategic Growth Through Acquisitions
The 20 MSP’s impressive growth, marked by 35 acquisitions in just 23 months, highlights the importance of strategic expansion. This rapid growth is made possible by standardizing all acquired MSPs on a single professional services automation (PSA) and remote monitoring and management (RMM) platform. In addition, The 20 MSP members share a large helpdesk to support customers as well as several back-office functions (like legal and accounting). Not only does this streamline operations, but it also enables members to streamline operations. By pooling resources, members can access high-quality services at lower costs. Other MSPs should consider developing a clear acquisition strategy, focusing on integration processes that maintain operational consistency and enhance overall service capabilities.
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The Importance of Marketing and Sales
While word of mouth marketing and referrals can lead to sales, MSPs are far too reliant on this strategy to stay on the growth path. When you consider how commodified IT has become in the past decade, effective marketing and sales strategies are vital for distinguishing successful MSPs within a crowded marketplace. It’s not just about getting the word out; it’s about getting the right word out. MSPs must clearly communicate their value propositions and unique offerings—be someone who can be seen as a trusted partner rather than just service providers.
Leveraging AI for Enhanced Efficiency
The growing interest in artificial intelligence (AI) among MSPs is a significant trend embraced by The 20 MSP. By integrating AI into operations, they enhance efficiency and streamline service delivery. Other MSPs can learn from this approach by exploring AI solutions to improve profitability and service quality. However, it’s crucial for organizations to prioritize data governance and security to protect sensitive information during this transition.
Keypoint Intelligence Opinion
The 20 MSP’s approach offers valuable lessons for other MSPs looking to thrive in a dynamic and competitive landscape. By embracing collaboration, adopting streamlined business models, focusing on effective marketing, and integrating innovative technologies like AI, MSPs can enhance their operational efficiency and drive sustainable growth. As the industry continues to evolve, those who learn from The 20 MSP’s practices can better position themselves for success in the future. By fostering collaboration and innovation, MSPs can create a stronger presence in the market and deliver exceptional value to their clients.
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