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Acer America
Acer America Corp. is a computer manufacturer of business and consumer PCs, notebooks, ultrabooks, projectors, servers, and storage products.

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333 West San Carlos Street
San Jose, California 95110
United States

WWW: acer.com

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Ask The Experts

September 19, 2024 |

How Can We Scale Our MSP Without Compromising Quality?

Kyle Christensen shares three main disciplines that your business must conquer to grow beyond 20%.

Many service providers have this same issue. They’ve achieved their original goals, so now it’s time to add fuel to their growth engine. But without a well-crafted plan, they can run into challenges when trying to scale an MSP.

This issue is intensified by the need to manage a wide array of products, costs, and personnel effectively.

As a multiple 10x survivor, I can tell you that many think they have the stomach, execution, and discipline to make it happen. But the likelihood is those tactics you’ve employed to get you here won’t get you there.

To grow beyond 20%, you need to start with a plan that takes full advantage of every minute available.

Ultimately, there are three main disciplines that your business must conquer to return this type of growth. Let’s take a closer look at each one.

No. 1 Obsessive Planning: The Power of a Good Budget

I recently coached an MSP that grew over $10 million in revenue in a single year. One of the main themes we focused on was the importance of budgeting.

They took the time and examined their profit-and-loss (P&L) reports closely, which summarized company revenue, costs, and expenses, and uncovered their business drivers. This was challenging because revenue and expenses were disorganized. Identifying more profitable products and services was a tough but necessary task that led to significant rework.

Growth is one thing, but smart growth is another. Growing by 50% in the wrong area could harm your business. Some revenue streams may have lower margins and can damage the bottom line if oversold.

After analyzing my client’s business performance for 18 months, we leveraged its P&L leaders to our advantage. This helped the company focus on the right products and services, creating a roadmap to scale revenues and labor proportionately and eliminating the guesswork of when to hire.

No. 2 Predictable Sales: Understanding Goals

Business owners often mistakenly focus on their product too early. Remember, your business is not just your product, which will evolve over time. Think of it as maturity through revenue versus maturity through debt.

You need customers to fund your product’s evolution. A thorough budgeting exercise will reveal your customer acquisition cost and cost per lead.

These metrics are crucial in achieving predictable revenue growth, helping you get new customers more cost effectively, and set an accurate sales and marketing budget.

Kyle Christensen of Empath

Kyle Christensen

No. 3 Recruiting the Right ‘Who’ at the Right Time

Maintaining service quality is a primary concern for MSPs. The challenge is not just achieving predictable sales but also knowing when to hire and train new employees. Recruitment often is the biggest bottleneck in a growing MSP.

In my retail corporate days, we faced the challenge of hiring thousands of employees monthly. Delaying the recruitment process in search of the “perfect hire” halts sales. We focused instead on finding the perfect trainee.

In my own MSP, bringing someone on early that fit the sales forecast allowed us to onboard customers more efficiently. This approach, supported by both the budget and sales strategy, enabled proactive recruitment planning.

Putting it All Together

By building a budget with a predictable sales plan and recruiting strategy, you will find the framework for growth. This accountable approach aligns your leadership team, removing the need for siloed decision making. It focuses on achieving company goals within the allocated budget.


Kyle Christensen is co-founder of Empath, a leading MSP software consulting firm. Known as the chief accountability officer, his unique “expectation flywheel” approach prioritizes actionable results over jargon. Learn more interesting facts about Christensen at app.channelwise.com/experts/kylechristensen.

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