Why Most MSPs Fail to Scale

In this video, I explain a common reason why most managed services businesses fail to scale. And what to do about it.

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Transcription:

Bryce Whitty here from Technibble.com and in this video, I am going to share with you a common problem I see with newer businesses.

Something I often see is new business owners not reinvesting enough into their business and it’s often the reason why many of them fail.

I’ve heard it quoted as “You don’t loot the treasury and start living like a king before the paint is dry on your kingdom”.

To use another analogy, think of your business like a snowball that you are pushing down a hill. It takes a bit to get started, but as it rolls it starts to get bigger and bigger and gaining more momentum. Once it’s going, you suddenly have to stop it, take some snow away, and then leave it at only half its former size. Then you let it start rolling down the hill again.

Now it’s rolling much slower and will take some time to get back up to the speed it was rolling at before.

This is what a lot of businesses do when they pay themselves too much too early. It kills the momentum and takes some time to get it back.

Many famous businesses say you should reinvest ALL of your profits. But I know many people have
mortgages to pay, and young mouths to feed.

So you should aim to reinvest at least to say 30% and put that back into advertising and delegating tasks, whether that’s outsourcing to professionals or employees.

THAT is how a business grows and builds momentum.

I hope that was helpful, I’m Bryce Whitty from Technibble.com and I look forward to the next video.