Comments on: Should You Grow Your Business Quickly — Or Slowly? http://www.mspmentor.net/2009/10/19/should-you-grow-your-business-quickly-or-slowly/ Managed Services Blog for Top Managed Service Providers Thu, 18 Mar 2010 16:03:30 +0000 http://wordpress.org/?v=abc hourly 1 By: Edward Stringfellow http://www.mspmentor.net/2009/10/19/should-you-grow-your-business-quickly-or-slowly/comment-page-1/#comment-50496 Edward Stringfellow Sun, 25 Oct 2009 01:04:26 +0000 http://www.mspmentor.net/?p=4419#comment-50496 Joe: Glad to offer up a few steps I made to change our business from a "lifestyle" company to a "growth" company. The biggest step was to change my mindset and go from being a technician delivering services to a manager running a service delivery business. --Define what the business will look like in one, two, and three years. How many employees, clients, revenue, etc. Then map from where you are to where you want to be. Basic I know, but it must be done. Most important part of this exercise for me was realizing that growth requires the service delivery (technicians) to be separate from the management of the company. --Establish what your target client profile(s) is (are). Then define what services each profile needs to be pitched. This allows a business to focus on delivering services that are the right fit for each profile and hopefully they are also the most profitable. Strangely, it's the prospects you turn away that can make you the most money! --Invest in getting your company's brand and message clear and out there. There seems to be a new "MSP" focused shop starting up each day, so the model isn't the differentiator, it's how YOU deliver the services within the model. Hope this helps! --E www.stringfellow.com Joe: Glad to offer up a few steps I made to change our business from a “lifestyle” company to a “growth” company. The biggest step was to change my mindset and go from being a technician delivering services to a manager running a service delivery business.

–Define what the business will look like in one, two, and three years. How many employees, clients, revenue, etc. Then map from where you are to where you want to be. Basic I know, but it must be done. Most important part of this exercise for me was realizing that growth requires the service delivery (technicians) to be separate from the management of the company.

–Establish what your target client profile(s) is (are). Then define what services each profile needs to be pitched. This allows a business to focus on delivering services that are the right fit for each profile and hopefully they are also the most profitable. Strangely, it’s the prospects you turn away that can make you the most money!

–Invest in getting your company’s brand and message clear and out there. There seems to be a new “MSP” focused shop starting up each day, so the model isn’t the differentiator, it’s how YOU deliver the services within the model.

Hope this helps!

–E

http://www.stringfellow.com

]]> By: Joe Panettieri http://www.mspmentor.net/2009/10/19/should-you-grow-your-business-quickly-or-slowly/comment-page-1/#comment-50456 Joe Panettieri Thu, 22 Oct 2009 03:18:08 +0000 http://www.mspmentor.net/?p=4419#comment-50456 Edward: Can you mention two or three specific steps you took to drive growth? Many readers are working hard to find growth opportunities and I'm sure they'd appreciate your thoughts. Thanks in advance for any follow-up you can offer. -jp Edward: Can you mention two or three specific steps you took to drive growth? Many readers are working hard to find growth opportunities and I’m sure they’d appreciate your thoughts. Thanks in advance for any follow-up you can offer.
-jp

]]> By: Edward Stringfellow http://www.mspmentor.net/2009/10/19/should-you-grow-your-business-quickly-or-slowly/comment-page-1/#comment-50455 Edward Stringfellow Thu, 22 Oct 2009 01:58:11 +0000 http://www.mspmentor.net/?p=4419#comment-50455 I think that in most cases slow growth equates to a lifestyle business versus rapid growth, which is well, a growth business. This is especially true in the technology space where most companies are started by individuals delivering the services themselves. Three years into starting our company I looked around and realized that we were making money, but growth was slow and I was a little tired of the "smallness" of a lifestyle business. Slow and steady wasn't all that exciting. So I made the conscience decision to go into growth mode. Fast forward three years and we have tripled clients, revenues, profits, etc. Yes, it is a lot more stressful but definitely not boring! I think in the end the decision is really more about the owner's wants and desires with free time, place in career, family, and all those “personal” variables. I think that in most cases slow growth equates to a lifestyle business versus rapid growth, which is well, a growth business. This is especially true in the technology space where most companies are started by individuals delivering the services themselves.
Three years into starting our company I looked around and realized that we were making money, but growth was slow and I was a little tired of the “smallness” of a lifestyle business. Slow and steady wasn’t all that exciting. So I made the conscience decision to go into growth mode.
Fast forward three years and we have tripled clients, revenues, profits, etc. Yes, it is a lot more stressful but definitely not boring! I think in the end the decision is really more about the owner’s wants and desires with free time, place in career, family, and all those “personal” variables.

]]> By: Joe Panettieri http://www.mspmentor.net/2009/10/19/should-you-grow-your-business-quickly-or-slowly/comment-page-1/#comment-50439 Joe Panettieri Tue, 20 Oct 2009 17:52:02 +0000 http://www.mspmentor.net/?p=4419#comment-50439 Greg@3: I wouldn't advise putting the breaks on growth. But I do understand why some MSPs might hesitate to launch a new product or service if their current services still need polish. Always wiser to over-deliver on your current offerings before you launch new ventures. Paul@4: Great tips. Letting go of certain day-to-day tasks can be painful for some entrepreneurs. Including me. But I'm trying... ... Greg@3: I wouldn’t advise putting the breaks on growth. But I do understand why some MSPs might hesitate to launch a new product or service if their current services still need polish. Always wiser to over-deliver on your current offerings before you launch new ventures.

Paul@4: Great tips. Letting go of certain day-to-day tasks can be painful for some entrepreneurs. Including me. But I’m trying… …

]]> By: Promotional Items by Gallant http://www.mspmentor.net/2009/10/19/should-you-grow-your-business-quickly-or-slowly/comment-page-1/#comment-50438 Promotional Items by Gallant Tue, 20 Oct 2009 17:34:59 +0000 http://www.mspmentor.net/?p=4419#comment-50438 Being a promotional agency ourselves and online for the last 15 years. My best advice is to grow your business slowly and offer great features - http://www.gallantgifts.com/dcw_cart/search.php and services - http://blog.gallantgifts.com that keep your clients coming back for more. If you looked at a yekllow pages from just two years ago, you would find that 60% to 70% of the promotional agencies are no longer in business. Some of the biggest players in the industry have made the same mistake that e-promos made. Thanks for the great article. Gallant www.GallantGifts.com Being a promotional agency ourselves and online for the last 15 years. My best advice is to grow your business slowly and offer great features – http://www.gallantgifts.com/dcw_cart/search.php
and services – http://blog.gallantgifts.com
that keep your clients coming back for more.

If you looked at a yekllow pages from just two years ago, you would find that 60% to 70% of the promotional agencies are no longer in business.
Some of the biggest players in the industry have made the same mistake that e-promos made.

Thanks for the great article.

Gallant
http://www.GallantGifts.com

]]> By: Paul Barnett http://www.mspmentor.net/2009/10/19/should-you-grow-your-business-quickly-or-slowly/comment-page-1/#comment-50437 Paul Barnett Tue, 20 Oct 2009 13:09:15 +0000 http://www.mspmentor.net/?p=4419#comment-50437 Mitch, I ran my own business for close to a decade. About four years in, I found myself in a situation where my enterprise exploded overnight. I went from ten employees to close to eighty in less than a two year span. At that time, I had no clue how to run a business that size. I remember feeling completely overwhelmed and unsure how to manage things during the growth period. I tried to keep my hands in everything, which proved to be impossible and nearly drove me insane. I finally gave in and hired a corporate consultant. One of the best things the consultant taught me was that I had to give up day to day menial stuff. She told me to hire good people, give them objectives, and hold them accountable. It is the e-myth principle, "work on your business, not for it." It was hard for me to give up the micromanagement, but once I did, things ran smoothly. Paul Barnett Marketing Director Virtual Administrator Mitch,

I ran my own business for close to a decade. About four years in, I found myself in a situation where my enterprise exploded overnight. I went from ten employees to close to eighty in less than a two year span. At that time, I had no clue how to run a business that size. I remember feeling completely overwhelmed and unsure how to manage things during the growth period. I tried to keep my hands in everything, which proved to be impossible and nearly drove me insane. I finally gave in and hired a corporate consultant. One of the best things the consultant taught me was that I had to give up day to day menial stuff. She told me to hire good people, give them objectives, and hold them accountable. It is the e-myth principle, “work on your business, not for it.” It was hard for me to give up the micromanagement, but once I did, things ran smoothly.

Paul Barnett
Marketing Director
Virtual Administrator

]]> By: George Sabados http://www.mspmentor.net/2009/10/19/should-you-grow-your-business-quickly-or-slowly/comment-page-1/#comment-50435 George Sabados Tue, 20 Oct 2009 00:12:26 +0000 http://www.mspmentor.net/?p=4419#comment-50435 Growth should occur at a pace natural to the existing structure of the business. There is also great merit in 'faking' that your are big - it creates the space required for growth. Putting the brakes on a business is, in my opinion, thinking 'small'. For instance, rather than interpreting the cost of marketing in terms of how many lattes you would have to sell to recoup the money spent, I recommend that business owners view their operational expenses in terms of 'Costs' vs 'Investments'. A cost is an expense to the business which does not have a direct impact on sales. An investment is a 'cost' to the business which when shelled out, directly affects sales (upwards). It is a minor shift in thinking but a major one in results! Growth should occur at a pace natural to the existing structure of the business. There is also great merit in ‘faking’ that your are big – it creates the space required for growth. Putting the brakes on a business is, in my opinion, thinking ’small’. For instance, rather than interpreting the cost of marketing in terms of how many lattes you would have to sell to recoup the money spent, I recommend that business owners view their operational expenses in terms of ‘Costs’ vs ‘Investments’. A cost is an expense to the business which does not have a direct impact on sales. An investment is a ‘cost’ to the business which when shelled out, directly affects sales (upwards). It is a minor shift in thinking but a major one in results!

]]> By: Joe Panettieri http://www.mspmentor.net/2009/10/19/should-you-grow-your-business-quickly-or-slowly/comment-page-1/#comment-50427 Joe Panettieri Mon, 19 Oct 2009 18:05:28 +0000 http://www.mspmentor.net/?p=4419#comment-50427 Rebecca: Great points. Down at the N-able Partner Summit last week, a lot of N-able executives and attendees were noting that "first mover advantage" in the MSP market no longer exists. I plan to blog a bit more on that topic, hopefully later this week. -jp Rebecca: Great points. Down at the N-able Partner Summit last week, a lot of N-able executives and attendees were noting that “first mover advantage” in the MSP market no longer exists. I plan to blog a bit more on that topic, hopefully later this week.
-jp

]]> By: Rebecca http://www.mspmentor.net/2009/10/19/should-you-grow-your-business-quickly-or-slowly/comment-page-1/#comment-50426 Rebecca Mon, 19 Oct 2009 16:50:46 +0000 http://www.mspmentor.net/?p=4419#comment-50426 Interesting post. One concern in our market with growing too slowly is competitors are catching up fast. When we started our MSP side of the business years ago there was very limited buzz about the industry. Not many people offered it - and even fewer did it well. Now however, the industry is growing rapidly. Every month we have new competitors - from a small local VAR turned MSP, to the big guys like Dell. Our perfect growth pace is where it's just doable to keep every client thrilled with their service. Any slower than that and the competitors are winning. Any faster than that and we just have a bunch of lukewarm clients we're always afraid will leave. No one wants that! Rebecca Everding www.motherG.com Interesting post. One concern in our market with growing too slowly is competitors are catching up fast.

When we started our MSP side of the business years ago there was very limited buzz about the industry. Not many people offered it – and even fewer did it well. Now however, the industry is growing rapidly. Every month we have new competitors – from a small local VAR turned MSP, to the big guys like Dell.

Our perfect growth pace is where it’s just doable to keep every client thrilled with their service. Any slower than that and the competitors are winning. Any faster than that and we just have a bunch of lukewarm clients we’re always afraid will leave. No one wants that!

Rebecca Everding
http://www.motherG.com

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