Introduction
Managed Service Providers (MSPs) are at the forefront of the digital revolution, providing critical IT services to businesses of all sizes. However, MSP owners often face a key challenge in their growth trajectory—giving up control. This reluctance can lead to poor financial decisions that stifle their potential to become truly wealthy. Tim Conkle, the visionary behind The Twenty, recognizes this challenge and has created a platform that not only aids in scaling but also addresses the mindset shift MSP owners need to make in order to achieve financial success. This white paper explores the challenges MSP owners face in giving up control, the impact on their financial decisions, and how The Twenty helps them transition into successful, scalable enterprises.
The Struggle for Control
For many MSP owners, the journey begins as a technical professional offering IT services. As engineers by trade, they pride themselves on their technical expertise, believing that providing the best possible service will lead to business success. However, what often gets overlooked is the need to relinquish control and delegate responsibilities as the business grows. Tim Conkle articulates this challenge when he observes that MSP owners struggle to market and scale their businesses effectively because they are "introverts" who prefer working with tools rather than building relationships or focusing on growth strategies(The 20s MSP Dry Transcr…).
This hesitancy to let go of daily operational control and allow others to take charge of crucial aspects like sales and marketing creates bottlenecks in business growth. By holding on too tightly, MSP owners miss opportunities to hire the right people or adopt systems that allow their businesses to grow beyond their personal capabilities. Moreover, they often fail to implement scalable solutions, leading to inefficient operations that eat into profitability.
"A guy works as an engineer, brings an engineering mind into a company, and thinks, 'I’ll create great products, the best service in the industry.' But the problem is, nobody knows because he doesn’t market. He’s an introvert, doesn’t talk to people." — Tim Conkle(The 20s MSP Dry Transcr…)
The Financial Impact of Retaining Control
The consequences of this inability to delegate are significant. Many MSP owners reach a point where they may be growing in terms of revenue, but not in profitability. Conkle recounts a story where an MSP owner increased revenue from $800,000 to $3.5 million in less than 18 months but was still not making any more money(The 20s MSP Dry Transcr…). The reason? The owner failed to scale efficiently, leading to rising operational costs, such as labor, which consumed any additional profits.
When MSP owners refuse to loosen their grip on control, they make short-term decisions that hurt long-term wealth generation. They might hire the wrong people, stick to inefficient processes, or neglect critical aspects like sales and lead generation. This results in missed financial opportunities and, more importantly, stifles their potential to accumulate substantial wealth.
"I’ve gone from like eight hundred thousand in revenue to three and a half million in twelve to eighteen months… but I’m not making any more money." — Tim Conkle describing a common MSP growth problem(The 20s MSP Dry Transcr…)
The Role of The Twenty in Solving These Issues
This is where The Twenty comes in, offering MSPs not only a roadmap for growth but also the tools to overcome these psychological and operational barriers. The Twenty helps MSP owners focus on three fundamental aspects: lead generation, sales, and scalability. According to Conkle, these are the pillars upon which any successful MSP must be built(The 20s MSP Dry Transcr…).
Lead Generation and Sales
One of the first hurdles for MSP owners is generating leads. As Conkle emphasizes, making the phone ring is a common problem for many MSPs(The 20s MSP Dry Transcr…). While some MSP owners may have succeeded in creating demand, many struggle with converting that demand into profitable sales. In one instance, Conkle describes how an MSP owner booked 44 sales appointments but closed none of them. This points to a broader issue within the MSP space: a lack of effective sales training.
The Twenty provides MSP owners with a proven framework to not only generate leads but also close deals. By helping owners develop the sales skills they lack, The Twenty ensures that MSPs convert opportunities into revenues, thus laying the foundation for greater profitability and scalability.
"Forty-four appointments, not a single sale. He provides IT support, but he couldn’t close a single one. So I knew then that we had a sales problem." — Tim Conkle on sales challenges(The 20s MSP Dry Transcr…)
Scaling and Building the Right Team
A critical element of Conkle’s philosophy, and one that underpins the success of The Twenty, is the importance of scaling efficiently. The Twenty helps MSP owners shift their mindset from being technical operators to becoming business leaders who can build scalable operations. One of the key innovations of The Twenty is the shared services model, where MSPs pool resources like help desks and technical experts, reducing labor costs and increasing efficiency(The 20s MSP Dry Transcr…).
Conkle highlights how most MSPs operate in silos, each with their own help desks and support teams. This inefficiency leads to high operational costs. In contrast, The Twenty consolidates resources, allowing members to access shared labor at a fraction of the cost, freeing up capital that can be reinvested into growth strategies.
"If you have ten MSPs, why create ten help desks? You create one. Let’s all use it." — Tim Conkle on resource pooling(The 20s MSP Dry Transcr…)
In addition to resource pooling, The Twenty emphasizes the importance of hiring the right people and placing them in the right roles. Conkle explains that businesses succeed when individuals operate within their "magic"—their areas of greatest strength(The 20s MSP Dry Transcr…). By encouraging MSP owners to hire strategically and delegate responsibilities to those better suited for specific roles, The Twenty creates an environment where businesses can grow without the owners having to maintain control over every aspect.
The Mindset Shift: From King to Wealth
One of the core concepts Conkle discusses is the decision between being a "king" and being "rich"(The 20s MSP Dry Transcr…). Many MSP owners want to maintain control over their businesses, which satisfies their need to be "king" of their company. However, Conkle argues that true wealth comes when you’re willing to give up some control and let experts take over key aspects of the business. In his own words:
"Do you want to be rich, or do you want to be a king? I want to be rich. So I don’t have to be in charge. I don’t have to run it forever." — Tim Conkle(The 20s MSP Dry Transcr…)
This mindset shift is essential for MSP owners who want to scale their businesses and achieve financial independence. The Twenty’s model encourages this transition by showing owners that, by stepping back and allowing their businesses to grow with the right team and systems in place, they can achieve far greater wealth than if they continue to micromanage every aspect of the business.
Collaboration and the National Footprint
One of the most significant benefits of joining The Twenty is the access to a national network of MSPs. This collaboration allows MSP owners to offer services on a scale that would be impossible on their own. For example, MSPs in The Twenty can leverage each other’s resources, such as onboarding teams, to manage large clients without needing to hire new staff(The 20s MSP Dry Transcr…). This collaborative approach not only reduces operational costs but also allows MSPs to take on larger clients, boosting their revenue and market presence.
Moreover, the national footprint provided by The Twenty enables MSPs to serve clients across multiple locations, making them more competitive in the market. This level of collaboration and shared resources is a game-changer for MSP owners who are looking to scale efficiently and profitably.
"If you’ve got a small company that doesn’t have enough people… they can reach into the group and say, ‘Hey, I need help onboarding,’ and you do no training. That’s what you have to have." — Tim Conkle(The 20s MSP Dry Transcr…)
The AI Transformation in the MSP Industry
Artificial intelligence (AI) is poised to revolutionize the MSP industry, and Conkle sees this transformation as an inevitable and critical factor in the success of future MSPs. He believes that AI will fundamentally change how MSPs operate, helping them to be more efficient, improve service delivery, and reduce operational costs.
AI will enable MSPs to automate many of the routine tasks that currently require manual intervention, such as monitoring systems, troubleshooting issues, and managing networks. This will free up human resources to focus on more strategic, higher-value activities, allowing MSPs to scale without the need for proportional increases in staffing.
"AI is going to change the game. It’s going to allow MSPs to operate with far fewer people, but deliver better service. The Twenty is already integrating AI into its platform to help our members stay ahead of the curve." — Tim Conkle(The 20s MSP Dry Transcr…)
The Twenty is already working on integrating AI into its shared services model, ensuring that its members can leverage this technology to stay competitive. AI tools will not only help MSPs reduce costs but also provide predictive analytics to identify potential issues before they become critical, improving uptime and client satisfaction.
Conclusion
MSP owners face unique challenges when it comes to scaling their businesses, and one of the most significant barriers is their reluctance to give up control. This mindset often leads to poor financial decisions that limit their potential for wealth creation. However, with the help of The Twenty, MSP owners can overcome these challenges by focusing on lead generation, sales, and scalable operations.