The best businesses run like well-oiled machines—without you, if needed. But building an MSP you can step away from can feel like an impossible feat, especially if you’re starting from a one-man shop.
Here’s how Jason Brooks, president of Beanstalk Computing, outsourced work and created an emergency exit strategy to ensure that his MSP wouldn’t fall apart without him.
Outsource to Grow with a Small Team
If you’re struggling to grow your MSP due to a small team, outsourcing can be a great way to bridge the gap. “Having a team behind you that can assist with all parts of your business, so you have time to focus on marketing and strategy development, [is critical]. In some cases that team is outsourced; in some, it’s in-house. We’ve chosen to do a combination of the two,” says Brooks.
For example, Beanstalk Computing outsources their Level 1 help desk, follow-up marketing calls, and direct mail marketing. This frees up their internal staff to focus on more complex tickets and the sale itself.
Outsourcing is also a great way to work with experts before you need to bring them on as a full-time staff member. “We have different aspects for our business that we outsource to professionals. That’s helped us grow from this one-man-band mindset to an enterprise-level mindset,” says Brooks. “Even though we’re not ready to bring all those people in-house yet, we have the power of those different teams behind [us].”
Beanstalk’s outsourced professionals include a fractional CFO, a bookkeeping company, and their CPA.
Planning for the Worst-Case Scenario
No one likes to think about how quickly one accident or diagnosis can drastically change their lives. But none of us are guaranteed tomorrow. And when both your business and family’s income are dependent on you, those stakes rise even higher.
This is exactly what Brooks was confronted with when he was diagnosed with cancer last year. This pushed him to create an emergency exit plan for his MSP. This ensures that his family and business will be taken care of, even in the worst-case scenario.
Brooks is in remission and doing well, but that doesn’t mean he’s going to stop working on his emergency exit plan. “I plan on being around for a while, but that was a wakeup call,” Brooks says. Key elements of his emergency exit include a plan to sell the business if needed, and the decision to bring on a partner.
Related: Why You Need a Business Fitness Plan for a Strong Foundation and Lucrative Payout
The Partner Advantage
“I brought on a business partner for a couple reasons,” says Brooks. “One is that if I’m no longer around, he can continue running the business. The other is that I’ve been running this business on my own for 15 years. It’s hard to do everything on your own, trying to make all these decisions and wearing all these hats. Having someone by your side that has your same mindset, that is there to kick ideas back and forth and brainstorm with [has made a huge difference].”
The reason Brooks chose to bring on a partner instead of hiring an employee came down to mindset. “It’s all about mindset,” he says. “[I wanted] my business partner to have skin in the game; part of that is them also being at risk of the company not succeeding, but also joining in on the company’s success. [This] has allowed my business partner and I to focus and work as hard as we can on the next phase of growing the business. I didn’t want an employee who would just do what’s required for that job.”
Advice for Other MSPs
Brooks spent too long using his business as his personal checking account—and it stunted his MSP’s growth. “If you’re an MSP that’s under $1 million and you’re treating your business as a lifestyle business and a personal checking account, be smarter than me. Get serious faster than I did, and surround yourself with successful people,” he advises.
To this end, he joined the top membership tier of sales and marketing organization TMT. Being surrounded by successful peers jumpstarted his MSP’s growth. “I joined as a $1M business, but my peers in my accountability group are mostly $4 and $5M companies. I made the conscious effort to surround myself with successful people,” Brooks says. “Confucius said, ‘If you’re the smartest person in the room, you’re in the wrong room.’”
For more expert advice from Brooks, tune into his episode on the My First Million podcast. Hear his strategies for marketing, building a referral network, and maintaining client relationships.
