ConnectWise Executive Unveils Strategies for MSP Profitability and Growth

Tampa, Fla. — managed Service Providers (MSPs) seeking to enhance profitability and scale their businesses can benefit from focusing on automation, strategic sales and marketing investments, and a return to essential business practices. peter Kujawa, executive vice president and general manager of service leadership and IT Nation at ConnectWise, recently shared these insights at ConnectWise IT Nation EMEA in London. ConnectWise has also launched a quarterly newsletter, “Service Leadership,” with the first edition, “How MSPs Saved the World,” highlighting the critical role MSPs played in facilitating the transition to remote work during the pandemic.

Key Strategies for MSP Profitability

According to kujawa,MSPs aiming to improve their financial performance should concentrate on three key areas: automation,sales and marketing,and a renewed focus on core business management principles. Benchmarking is crucial to identify areas needing improvement. The first step is to benchmark your business and understand why profitability is struggling, Kujawa saeid. Once you understand the root cause, make the tough decisions to fix it. The top MSPs are triumphant because they are willing to make decisions quickly and act on them.

ConnectWise’s new quarterly newsletter, “Service Leadership,” is designed to provide MSPs with actionable advice. The inaugural issue, “How MSPs Saved The World,” acknowledges the vital role MSPs played in enabling businesses to adapt to remote work during the COVID-19 pandemic. Future editions will address topics such as cybersecurity, AI, and automation, offering MSPs insights into emerging trends and best practices.

The Power of Peer Groups

Kujawa emphasized the effectiveness of connectwise’s peer groups,known as Evolve,in driving MSP success. these groups offer a unique surroundings for members to benchmark their performance against industry leaders and share best practices. The Evolve peer groups offer a unique environment where members benchmark with best-in-class service leadership from day one, Kujawa explained. This benchmarking not only shows you where you stand but creates a culture of accountability within the group.

The accountability fostered within these peer groups is a significant driver of change. Knowing they will report on their progress each quarter encourages members to take action and implement improvements. Moreover, peer groups provide a valuable support network where MSPs can share challenges and solutions. Beyond accountability, peer groups offer something invaluable—other business owners who are facing similar challenges, Kujawa noted. You can bounce ideas off each other, share best practices and ultimately build a recipe for success without having to reinvent the wheel.

Expanding the IT Nation Community in europe

ConnectWise is dedicated to expanding its IT nation community in Europe, providing more support and resources to MSPs in the region. The company has recently hired a new team member to manage the Evolve community in Europe and is investing in infrastructure to support its growth. We’re focused on providing more support and resources for the IT Nation community in Europe, Kujawa stated. We’ve recently hired a new team member to manage the Evolve community in Europe and expanding the team and infrastructure behind the scenes is critical as we scale.

ConnectWise is particularly interested in expanding its reach beyond the U.K., targeting partners in Ireland, mainland Europe, and Belgium, where the company has established a new office. Partnerships with companies like SkyKick and Axcient are crucial in extending ConnectWise’s reach across Europe. Our partnership with SkyKick and Axcient is crucial in extending our reach across Europe, and we believe the European MSP community is eager for the type of support and growth that IT Nation offers, said Kujawa.

The Open Ecosystem Approach

ConnectWise emphasizes an open ecosystem approach,providing MSPs with access to a wide range of products and solutions,even from competitors. This approach allows MSPs to make informed decisions based on their specific needs. The open ecosystem approach really benefits MSPs as they know that when they attend our events, they’re exposed to more vendors than they would be at other industry events, Kujawa explained. It’s about offering choice and flexibility. Our goal is to give MSPs access to a wider range of products and solutions, even from competitors.

Kujawa believes that even if an MSP chooses a product that isn’t from ConnectWise, they will still benefit from the exposure to diverse voices and insights. Ultimately, even if MSPs choose a product that isn’t ConnectWise, they’ll still be in a better position as they’ve learned from diverse voices and gained valuable insights, he said. The MSP community is incredibly collaborative, and our open ecosystem really aligns with that collaborative spirit.

Data-Driven Decisions for MSP Advancement

ConnectWise leverages MSP profitability data from surveys to improve its offerings and help MSPs enhance their operations. Since acquiring Service Leadership in 2021,ConnectWise has been using this data to inform product

Unlocking MSP Profitability: Expert Insights on Growth Strategies

Are Managed Service providers (MSPs) missing out on massive profit potential due to overlooked strategies?

Interviewer: Welcome, [Expert Name], leading authority on MSP business strategies and growth. The recent ConnectWise executive insights highlighted automation, sales, marketing, and core business practices as crucial for MSP profitability. Can you elaborate on the importance of these elements and offer actionable advice for MSPs striving for sustained growth?

Expert: Absolutely. Many MSPs, while technically proficient, struggle to translate their skills into meaningful, sustainable profits. The core issue frequently enough lies in neglecting business fundamentals alongside technological expertise. Thinking of your MSP as a business,not just a tech service,is paramount. Let’s dissect those key elements:

Automation: The Cornerstone of Efficiency

Interviewer: Automation frequently gets mentioned, but how can MSPs effectively leverage it to enhance profitability? what practical steps should they take?

Expert: Automation isn’t just about deploying the latest tools; it’s about strategically optimizing your workflows. Start by identifying the most time-consuming,repetitive tasks – things like help desk ticket management,routine system maintenance,and basic reporting. Invest in tools that automate these processes, freeing up your highly skilled technicians for more complex, higher-value work. Look at solutions providing Remote Monitoring and Management (RMM) and Professional Services Automation (PSA) integration for seamless workflows. This directly impacts profitability by increasing efficiency and reducing operational costs. Consider robotic process automation (RPA) for even more complex business processes.

Strategic Sales and Marketing: Beyond Technical Expertise

Interviewer: How can MSPs shift their focus from purely technical skills to encompassing robust sales and marketing initiatives?

Expert: many MSPs fall short by relying solely on referrals. A robust marketing strategy is essential for consistent lead generation and growth. This involves clearly defining your ideal client profile (ICP), understanding their pain points, and crafting targeted messaging. Develop a multi-channel approach using content marketing (blog posts, case studies, white papers), search engine optimization (SEO), social media engagement, and perhaps even paid advertising, depending on your budget and target audience.remember, selling is more about understanding your prospects than pushing your services. Focus on building relationships and demonstrating the value you bring.

Essential Business Practices: A Foundation for Success

Interviewer: The emphasis on “returning to essential business practices” stands out. What are some critical aspects MSPs often neglect in this area?

expert: It’s about the foundational aspects: robust financial management, effective project management, clear service level agreements (SLAs), and proficient client interaction. Implementing these practices lays the groundwork for operating with consistency, predictability, and efficiency. Regularly review your financial statements to gain greater visibility into your profit margins, billing practices, and cost efficiencies. utilizing project management software aids in improving productivity and on-time delivery for enhanced client satisfaction.

Leveraging Peer Groups and Communities

Interviewer: The interview mentioned the value of peer groups like ConnectWise’s Evolve. How can collaborative environments benefit MSPs striving for improvement?

Expert: Peer groups provide invaluable access to best practices, industry benchmarks, and a supportive network where MSPs can share challenges and accomplished solutions. Benchmarking against peers allows you to objectively assess your performance, identify areas for improvement,learn from the successes of others,and avoid repeating common pitfalls. The accountability fostered within these groups drives real action.

The Open Ecosystem Approach: Embracing Choice and Versatility

Interviewer: This open ecosystem approach, allowing MSPs to source solutions from different vendors, is a unique approach. What are its advantages?

Expert: An open ecosystem allows for greater flexibility and choice, ensuring that MSPs select solutions that best align with their unique needs and client requirements. It prevents vendor lock-in and enables MSPs to stay at the forefront of innovation adopting the best-of-breed technologies, irrespective of vendor. It cultivates collaboration and knowledge exchange, benefiting even those who don’t use ConnectWise solutions.

Data-Driven Decision-Making: The Path to Informed Growth

Interviewer: How can MSPs effectively use data analysis to improve their business operations and drive informed decisions?

Expert: Tracking key performance indicators (KPIs) like customer acquisition cost (CAC), customer lifetime value (CLTV), average revenue per user (ARPU), and service delivery efficiency is essential. This data allows for informed decision-making regarding resource allocation, sales and marketing campaign effectiveness, and pricing strategies. Use the data collected to optimize performance and improve your bottom line. Use business intelligence (BI) tools to help with this process.

Interviewer: [Expert Name], thank you for sharing these invaluable insights. Your advice empowers MSPs to navigate the complexities of profitable growth.

Closing Statement: MSPs seeking lasting success must transcend mere technical proficiency and embrace a holistic business approach. By strategically integrating automation, refining sales and marketing strategies, and prioritizing essential business practices, MSPs can unlock significant profitability and build sustainable growth. Don’t just be a technology provider—be a successful business leader! Share your experiences and thoughts in the comments below!