Jesse Miller | The Hidden Goldmine MSPs Are Overlooking

In this engaging episode of MSP Business School, host Brian Doyle welcomes Kyle Christensen, founder of Empath, to explore the rapidly evolving landscape of AI in the world of MSPs. With a rich background that includes time at Geek Squad and turning a small MSP into a hyperscaler, Kyle brings deep insights into both the opportunities and challenges that AI presents to the MSP sector. Listeners are introduced to the concept that while AI holds potential for incredible business transformation, the current scenario sees many businesses—including MSPs themselves—still in experimental phases of AI adoption. As the conversation progresses, Kyle and Brian discuss the shift from a fear-driven sales approach to one motivated by FOMO. They stress how important it is for MSPs to establish a consultative relationship with their clients and adapt to each client's unique business processes for successful AI integration. The episode highlights the necessity of embracing AI not just as a tool but as a service-oriented opportunity that can lead to deeper client relationships and enhanced business value. They caution against setting unrealistic expectations or avoiding the full utilization of AI due to perceived complexities. Key Takeaways: Embrace AI with Curiosity: Both MSPs and their clients are still learning and experimenting with AI. Viewing AI as a field of exploration rather than immediate mastery can foster innovation. Shift from FUD to FOMO: Transitioning from fear-driven sales to leveraging clients' fear of missing out can create a more thriving business environment. Consultative Approach: The future success of MSPs lies in consulting, listening, and understanding individual client needs to integrate AI effectively into their processes. Monetizing Readiness Assessments: Properly executed readiness assessments, which might take several weeks, are crucial and should be a paid service. Growing Advisory Roles: There is a ripe opportunity for MSPs to strengthen their advisory roles amidst the AI transformation, preventing AI-exclusive consultants from taking over client relationships. Guest Name: Kyle Christensen LinkedIn page: https://www.linkedin.com/in/kylechx/ Company: Empath Company Website: https://empathmsp.com/ Show Website: https://mspbusinessschool.com/ Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/ Sponsor vCIOToolbox: https://vciotoolbox.com

In this engaging episode of MSP Business School, host Brian Doyle welcomes back Larry Meador, Channel Chief at Cavelo, to discuss the ever-evolving challenges and opportunities within the managed service provider landscape. With an extensive background spanning over two decades, Larry brings a wealth of knowledge on cybersecurity, capacity issues, and the future impact of AI on threat management and risk reduction. Larry Meador delves into the pressing issue of capacity constraints faced by MSPs when trying to scale their cybersecurity offerings. He underscores the importance of comprehensive cybersecurity measures, noting that "if you're not offering cybersecurity, you're not going to keep pace." With AI rapidly changing the threat landscape, MSPs are under pressure to evolve faster than ever. He shares how MSPs need to understand where their clients' sensitive data resides and who has access to it, warning that, "you can't protect what you can't see." Larry also introduces Cavelo's innovative approach to vulnerability and risk management, highlighting their AI-driven analyst, CORA, which helps automate prioritization and remediation processes, providing a strategic edge in managing cybersecurity tasks efficiently. The episode further explores how AI and tools like Cavelo's platform can alleviate the ever-growing pressure on MSPs to enhance both efficiency and effectiveness in the cybersecurity domain. Larry emphasizes the need for visibility in data management, noting that true value comes when visibility translates into actionable insights. He also touches on the evolving metrics of cybersecurity given the maturing MSP industry and shares his thoughts on the ideal state of cybersecurity management enhanced by AI with guardrails, ensuring a secure yet controlled automated response strategy. Key Takeaways: Larry Meador emphasizes that maintaining robust cybersecurity offerings is crucial for MSPs to stay competitive in the rapidly evolving tech landscape. The growing demand for cybersecurity outstrips the capacity MSPs can typically supply, creating a significant need for automation and improved resource management. Cavelo's platform provides visibility into sensitive data locations, vulnerabilities, and user activity, enabling MSPs to efficiently reduce risk exposure. AI-driven tools, such as Cavelo's Cora, are transforming data analysis and vulnerability management, promising significant reductions in manual processing time and effort. The future of cybersecurity will increasingly involve AI-driven automated remediation with MSP-controlled guardrails to ensure effective and timely threat management. Guest Name: Larry Meador LinkedIn page: https://www.linkedin.com/in/larrymeador/ Company: Cavelo, Inc. Company Website: https://www.cavelo.com/ Show Website: https://mspbusinessschool.com/ Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/ Sponsor vCIOToolbox: https://vciotoolbox.com

In this episode of MSP Business School, host Brian Doyle engages with guest Andrew Jordan to uncover the financial fundamentals essential for MSP success. The discussion pivots away from mergers and acquisitions to focus on immediate financial strategies that MSPs can deploy for profitability. Andrew shares insights from his journey from CPA to CFO, underscoring the importance of proper financial management and the pitfalls MSPs often face when setting up their books. The episode provides a detailed walkthrough of smart financial practices for MSPs, highlighting the critical distinction between costs of goods sold and expenses. Andrew explains the necessity for MSPs to accurately determine their gross profit to guide strategic business decisions. He offers guidance on navigating common financial misconceptions and emphasizes the transformative impact of having a competent financial advisor. By emphasizing the personal side of business finances, Andrew encourages MSPs to shift their focus from survival strategies to sustainable growth and operational efficiency. Key Takeaways: Accurately differentiate between costs of goods sold and expenses to maintain a clear financial picture. Gross profit margins of 30-40% are indicative of healthy MSP operations. Understand and utilize financial statements as strategic tools, not just for tax filing. The key to business growth includes seeking financial mentorship and establishing a trusted partnership with an accountant or fractional CFO. Effective financial management can lead to the freedom of time and a well-balanced work-life dynamic. Guest Name: Andrew Jordan LinkedIn page: https://www.linkedin.com/in/andrew-jordan-cpa/ Company: Jordan CPA Services Company Website: https://www.jordancpaservices.com/ Show Website: https://mspbusinessschool.com/ Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/ Sponsor vCIOToolbox: https://vciotoolbox.com

Welcome to another enlightening episode of the MSP Business School, featuring the insightful Shawn Walsh from Encore Strategic. In this episode, host Brian Doyle and Shawn dive deep into the intricacies of building and selling a successful MSP business. Shawn shares his unique transition from law enforcement to the world of MSPs, leveraging his skills in computer forensics to grow a thriving business which he ultimately sold to a private equity firm. His current role sees him mentoring MSPs on effectively planning their exit strategies well in advance. In a conversation rich with actionable insights, Shawn and Brian explore common pitfalls that MSPs face, particularly around valuation and the importance of planning for an exit from day one. They discuss the Value Builder Assessment as a tool to measure a company's worth beyond just EBITDA, highlighting the crucial role of building a robust sales engine and the dangers of underpricing services. Shawn emphasizes the need for MSPs to distinguish themselves in the marketplace, warning against straddling the line between being a price leader and a value leader. Key Takeaways: MSPs should plan their exit strategies early, ideally beginning 10 years before the anticipated sale. The Value Builder Assessment can significantly enhance an MSP's valuation by focusing on multiple factors beyond EBITDA. Building a sales engine independent of the owner is crucial for an MSP's sustainable growth and value. Discounting services can undermine a business's perceived value; charge premium prices to ensure clients take the service seriously. Differentiation in the MSP space is vital; focus on boardroom-level conversations to emphasize business goals over technical jargon. Guest Name: Shawn Walsh LinkedIn page: https://www.linkedin.com/in/encorestrategic/ Company: Encore Strategic Company Website: https://encorestrategic.io/ Show Website: https://mspbusinessschool.com/ Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/ Sponsor vCIOToolbox: https://vciotoolbox.com

In this episode of MSP Business School, host Brian Doyle welcomes James Kudla, founder of Kalutasan, to discuss the nuances of outsourcing support from the Philippines for MSPs. James shares his professional journey from mechanical engineering to owning a successful MSP, before venturing into the world of providing high-quality outsourced resources. The episode offers a comprehensive look at the benefits and logistics of leveraging international labor to enhance capacity and efficiency for managed service providers. The conversation highlights how strategic outsourcing can address common MSP challenges, including staffing shortages, increasing operational costs, and improving response times. SEO keywords such as "outsourcing," "Philippines labor," and "MSP staffing solutions" are interwoven throughout the discussion, emphasizing the show's focus on innovative workforce management solutions. As a seasoned industry professional, James offers compelling insights into how outsourcing from the Philippines is transforming the MSP landscape, by combining English proficiency and technical expertise to offer significant cost savings and operational flexibility. Key Takeaways: Outsourcing to the Philippines can lead to cost savings of up to 70% compared to domestic staffing, providing a competitive advantage for MSPs. The culture and infrastructure in the Philippines have evolved significantly, making remote work efficient and reliable. Many experienced IT professionals in the Philippines have substantial MSP experience, making them valuable assets for service providers. James Kudla's own journey demonstrates the transformative potential of strategic staffing solutions in overcoming MSP challenges like staffing shortages and rising operational costs. The partnership with Kalutasan is not just about filling roles, but about creating career opportunities and development for Filipino professionals, while strengthening MSP capabilities in North America. Guest Name: James Kudla LinkedIn page: https://www.linkedin.com/in/jameskudla/ Company: Kalutasan, Inc. Company Website: https://kalutasan.com/ Show Website: https://mspbusinessschool.com/ Host Brian Doyle: https://www.linkedin.com/in/briandoylevciotoolbox/ Sponsor vCIOToolbox: https://vciotoolbox.com