Whether you’re transitioning into the managed services market or launching an MSP from scratch, I spotted some timely start-up guidance from Inc. magazine. The article highlights the need for “careful morale management.” But I think you need to take the example one step further and ask yourself: Can you really build a business doing everything by yourself?
According to Inc.’s feature:
“The biggest reason founders stop working on their start-ups is that they get demoralized. Some people seem to have unlimited self-generated morale. These almost always succeed. At the other extreme, there are people who seem to have no ability to do this; they need a boss to motivate them. In the middle there is a large band of people who have some, but not unlimited, ability to motivate themselves. These can succeed through careful morale management (and some luck).”
Do Solo Acts Succeed?
If you apply that example to the managed services market, I’ve noticed another key trait about morale management: Generally speaking, I think many successful MSPs have at least two strong leaders — with clearly defined roles — who build and drive the business forward, and continually motivate each other.
As I’ve discovered here at Nine Lives Media Inc. (parent of MSPmentor), one person can’t do it all. Yes, I think self-motivation is a critical secret to success. But business partners who consistently give each other a morale lift is a huge secret to success.
And if you think about it, many highly successful tech companies have (or had…) two leaders — with clearly defined roles — who continually motivate each other…
- Microsoft: Until recently, both Steve Ballmer and Bill Gates
- Oracle: During the company’s best years, Larry Ellison AND Ray Lane
- Apple: During the start-up stage, Steve Jobs and Steve Wozniak
- Google: Co-founders Larry Page and Sergey Brin
- Cisco: During the early growth/acquisition years, John Morgridge and John Chambers
Do you always need two people to succeed? Certainly not. And two (or more) leaders who lack clearly defined roles can destroy a business before it even gets started. But I find the secret to great morale — and success — is working with a business partner who knows when to challenge you, when to criticize you, and when to praise you.
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Tags: Inc. magazine | managed services start-ups | Morale Management | Nine Lives Media Inc. | small business start-ups
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Joe,
I read somewhere, or heard somewhere that most business partnerships don’t end well. That isn’t to say it can’t be done, but I think I have the challenge of trying to be a do-it-all guy to growing. I could add a business partner, but I feel like the I.T. people I know and trust who I would consider aren’t on the same page as me (break/fix instead of MSP or under-charge for services, etc.) I also worry about what happens when it is time to sell the business, or when burnout happens. Now you have someone else depending on you, and the timing has to work for when you decide to sell, or aquire someone else, etc.
My wife has been very fortunate in her HR consulting firm that she has a very good relationship with her business partner. I just have heard of so many ones going south.
I could definately see having a second leadership role below mine, for example, a technical manager or something
dd
David: You are correct to raise the fear of a partnership going bad.
Amy Katz (my business partner) was pro-active when we started Nine Lives Media Inc. (MSPmentor’s parent) as 50-50 partners.
Amy asked all the hard/difficult questions about how to structure a partnership, how to ensure equal commitment from both partners, and how to manage a transition (financially and structurally) if one partner leaves.
I hated the entire process of discussing “what if things go bad.” And Amy didn’t enjoy it either. But it was one of the first extended conversations we had with a lawyer. And getting it out of the way (right from the start) allowed us to focus on building a business rather than worrying about each partner’s commitment to the business. The process proved we were totally committed.
Can partnerships go bad? Absolutely.
But I also realize this: Working together was the only way for Amy and me to build a successful, disruptive, growing media company with a complete set of skills (business development, sales, marketing, finance, partnerships, content, audience development, events, research, search engine optimization, etc.) under a single roof.
That’s a long list of traits. And we needed ALL of those traits for Nine Lives Media Inc. to succeed. And no one person has all of those traits.
But you’re right: If you don’t have the right partner you are hosed.
The other interesting trend is that once you start to see some light at the end of the tunnel after bringing your startup to fruition, that is when people (colleagues, friends, etc.) seem to come out of the woodwork and start talking about partnerships. Where were all of you guys when I was in the terrifying first months of trying to get the business to take hold?!
My wife is a good example of a successful 50/50 partnership. I personally think that 50/50 is potentially not ideal, and that maybe having one partner that plays the primary leadership role may be the better way to go. Of course this creates a little different dynamic too. I’d like to see what the “experts” who study this stuff for a living have to say…
David: We sort of have that hybrid approach here, where it’s a 50/50 partnership but Amy does have the primary leadership role in terms of our communications regarding business relationships, finance, etc.
As 50/50 partners, Amy and I discuss strategic decisions (finances, site development, company direction, etc.) But she’s the “point” person when it comes to third-party inquires (partnerships, etc.) who ping us.
I know not all 50/50 partnerships have happy endings. And I’m not suggesting one size fits all. But I can’t imagine launching a company solo — especially a media company — because of the workload and the range of skills you need.