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Joseph Lamb

Joseph is a published author, a pioneer in the managed services industry and is currently serving as a facilitator for the Connectwise Evolve organization of peer groups, and the CEO of RedVine Operations.

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The Foundations for MSP Success

Getting an MSP up and running might seem simple: buy the tools, set everything up, draft a contract, and sell a few clients. But things can get complicated quickly. Managed Service Providers (MSPs) face human resource challenges, legal issues, accounting and collections problems, and vendor relationships. What might look easy from the outside becomes complex at lightning speed.

What many MSPs don’t realize is that there’s a proven formula—a way to structure your MSP to ensure long-term success. While I often discuss this formula with my clients, what frequently gets missed is the foundation. Like any strong structure, a good MSP foundation is essential, or the work you put in could topple over time.

If you have recently faced a setback, or are struggling to get above a certain level with your MSP, then this might be the advice you’ve been looking for since you started it. I call it The Foundations for MSP Success.

Foundation 1 – Mission

If you’re a small MSP, you might think mission or vision statements are unnecessary. But having a mission statement for your MSP is like setting a destination on a map. A mission or vision statement—what Simon Sinek calls the “Why” statement—is simply a destination for your business. Companies are driven by culture, not just strategy. A well-crafted mission statement can elevate an MSP from mediocre to highly successful by giving your team something to rally around.

Mission statements are easy to fake, so spend time developing a meaningful one. While there are many guides on crafting a mission statement, remember it must be grand, have a purpose beyond profit, and inspire your people. Think of how Apple’s “Think Different” campaign inspired employees and consumers alike. Once you have a powerful mission statement, make sure it’s woven into the daily experience of your team.

Foundation 2 – People

Jim Collins famously said in his book “Good to Great” that you need the right people on the bus before driving it anywhere. If you’re running a small MSP that seems to be stuck and find yourself doing everything, you might have one of two main problems: either you struggle to delegate and empower others, or you don’t have the wrong people in your organization.

Start with an evaluation. List your core values—not what you hope they are, but the actual values driving your organization. There are many sites that can help with this process, such as Wordstream and HubSpot. Or, you can hire a good consultant to help you. Once you select your core values, compare each employee to these core values to determine if they regularly display all of the core values. If they do, they’re likely a good fit and you can then evaluate their skill set. If they do not, then it’s worth discussing with them to provide direction to improve. Not everyone will be a perfect fit for all of your values so be sure to give a little grace, but understand that strong alignment across the team makes it easier to drive the company forward together, especially in a growing MSP.

Foundation 3 – Process

Some say “everything you do should be in a process.” While this may seem ambitious, it’s essential to create core systems to boost efficiency and protect your margins. A lack of process means a lack of predictability – and in MSPs, unpredictability eats into profits fast. When I say system, I don’t just mean software; I mean clearly documented workflows that are trained into each team member. This helps your team consistently deliver the same reliable service to every client. This concept, championed by Michael Gerber in “The E-Myth”, suggests that documenting major processes and training staff on them creates a service experience for clients that’s consistent and reliable. 

So here’s your homework: Sit down and analyze each department from sales, to accounting to service. Write a list of 5-8 major processes that are done daily to keep that department running. For accounting, that might be your accounts receivable or accounts payable process. Or maybe a collections process. For service, it might be triaging a ticket, or scheduling field engineering service. The point it, list the ones that you just could not do the job without. Then take the time to build out a numbered process for each one so that if I hired someone off the street with similar experience to a role in said department, they should be able to do 90% of the job with the written process. 

Conclusion: Start With a Strong Foundation for MSP Success

While starting an MSP may seem easy, sustaining and growing it is challenging. Establishing a strong foundation for your MSP through these three pillars—Mission, People, and Process—can help you achieve sustainable growth. A clear mission gives direction, the right people bring alignment and drive, and well-defined processes ensure consistency and efficiency across the board.

Following these foundations can take your MSP wherever you want it to go. If you’d like help building or refining your MSP foundation, don’t hesitate to reach out to RedVine Operations for guidance.

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