I suspect that those in a rush to the exit door are MSPs in name only, who have never truly made the committment to becoming a true MSP.

Delivering a service that provides true value to the client at a fair price is gratifying, and it’s what most MSPs do..

Jim Van
http://www.logicomm-inc.com

I think it is important to make sure you are spending your capital wisely and not on assets that lose value over time.

Quote of the Day: “One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man.” – Elbert Hubbard, from The Roycroft Dictionary and Book of Epigrams, 1923.

But I do worry when so many MSPs express interest in cashing out of this market. I guess it’s similar to the early days of the PC market. Everyone raced for the land grab. But only a few folks (Michael Dell, Steve Jobs, etc.) stuck around for the real long haul to build something of long-term value.

Of course, sticking around may not always be smart because you never know when somebody is going disrupt your market. There’s an old saying business: The first offer you get is usually the best offer you’ll receive. For MSPs, that means it’s tempting to sell when someone expresses interest…

There is far more value in building a practice over 5, 10 or even 15 years and skimming the cream (profit) for that same period of time, then selling part or all of it off to either those who helped you build it (your current employees) or as a last resort to a roll-up like Sparxent.

Either way you win but all good things take time; ther are no shortcuts.

Yes, we are in a business cycle where there are a lot of “pretender” MSPs in the industry. You know the type. They’re resellers who hang out at MSP events, and nod their heads in agreement when an event host asks who in the room has made the move to managed services.

There are some great MSP success stories out in the market. But we’re also heading for a shakeout that will eliminate the pretenders in the next 12 to 18 months max.