Hi Reader!

After working with hundreds of MSPs across all revenue stages, I've noticed a clear pattern in what separates the thriving businesses from those that struggle:

It's not about the technology. It's about the people and culture.

I know you've heard this and probably even believe it, but why do so many businesses not follow through and act on this? In our industry, we have a natural tendency to look for technical solutions to business problems.

• New RMM tool to improve efficiency?
• Latest security stack to boost margins?
• Better PSA to streamline operations?

These tools matter—but they're not what creates the breakthrough.

The Costly Tech-First Mindset

I recently worked with an MSP owner who spent $86,000 on project costs to revamp his tech stack. Revenue was up slightly, but margins were actually down. His team was overwhelmed learning new systems while still trying to deliver quality service.

When we stepped back to assess, the real issues became clear:

1. No clear leadership structure as they'd grown
2. Undefined core values so no one takes the lead
3. Reactive hiring rather than strategic team building
4. No consistent frameworks for accountability

Sound familiar?

What Actually Drives MSP Success

The MSPs that successfully scale beyond the $1-5M "death valley" all share common traits:

1. They invest in leadership development - Both for themselves and their key team members
2. They define and embody clear values - Not just words on a wall, but genuine principles that guide decisions and are discussed regularly.
3. They build organizational systems - Processes that reinforce culture rather than replace it
4. They prioritize communication skills - Technical knowledge is second to the ability to build relationships with clients AND team members

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