Selina A. Poynter

Owning and managing a business can be difficult. From setting up and overseeing operations to billing and collections, it can be unfathomable to novice entrepreneurs how many hardships they may encounter when opening a new enterprise. No one can anticipate everything that could go awry, especially when that process involves building a managed services firm with many variables and complexities. Of course, that undertaking pales in comparison to the effort required to keep a business open for years after the celebratory ribbons have been cut.         Most MSPs can recount multiple stories of those struggles. From expanding the client base and hiring the right people to scaling operations effectively without weakening support levels, providers must simultaneously focus on various matters. The hardest part is not dropping the ball on any of those activities while preventing the inevitable fires that come when managing IT systems for many different busines...

This blog is the second of a two-part series that addresses MSP resource challenges. Managed services providers are battling several long-term issues that negatively affect their ability to do business. Unfortunately, financial and IT industry experts predict there is no end in sight for several of those challenges, including inflation, labor shortages and supply chain constraints. That last point is particularly concerning as MSPs attempt to upgrade critical systems for their clients while growing their revenue. Following nearly three years of supply chain woes, 2023 may not provide many new solutions. The global economy is still experiencing hiccups from the pandemic and the demand for many products, especially IT components and devices, remains stronger than production. Some manufacturers are expected to proceed cautiously in the coming year with concerns over recession and inflation, particularly in Europe, where new Environmental, Social, & Governance (ESG) initiatives coul...

This blog is the first of a two-part series that addresses MSP resource challenges. From quiet quitting and skilled staffing shortages, managed services providers continue to battle a slew of economic, market and availability problems. With financial and industry experts predicting that most of those existing challenges (and likely a few new ones) will continue for the foreseeable future, MSPs may need to change their game plans in 2023. That process begins with assessing the largest risks and potential points of failure. What realistic challenges could keep an MSP from achieving its annual business goals? Discounting the far-fetched possibilities such as meteors falling from the sky or businesses no longer being interested in IT, technology business owners must have a firm grasp of things that could derail their plans. MSPs don’t need an MBA or an economics degree to listen to industry podcasts, read financial expert blogs or attend channel events. Each of those forums can provide ...

The business community has been through more challenges and transformations over the past three years than at any previous point in time. The IT side of operations has been extremely busy, from the global pandemic-inspired push to ramp up cloud adoption and remote/hybrid workplace options to the immense and ever-shifting threats cybercriminals pose. Economic concerns are forcing even more changes. Most companies are dealing with the ongoing threats of recession and continued high inflation rates, seeking to keep the pace of revenue increases in line with expenses and making more conservative yet wise investments. No matter how the economic pendulum swings in 2023, business leaders are hedging their bets to ensure success—or, worst-case, a softer landing. What do all these changes mean for MSPs? Whether halfway through a year or approaching the next, providers are the purveyors of transformation, especially concerning IT-centric systems and business processes. Knowing what concerns an...

The uncertainties of running a business often weigh heavily on owners. The relatively stable parts of an operation—including clients, contracts and portfolios—may shift over time, but MSPs can typically influence the degree of change and counter some of the potentially negative effects. The things that remain out of their control cause the most sleepless nights. These “unknowns” or external forces may negatively impact clients’ perceptions and inhibit their willingness to increase IT investments and build longer-term business plans. For example, the current economic conditions indicate an impending recession that highly concerns many business owners, including MSPs and their SMB clients. Businesses have been dealing with elevated inflation rates and ongoing supply shortages for more than a year, and global market experts predict those challenges may further escalate in 2023. Experts suggest worldwide economic growth will slow from 6.0% in 2021 to 3.2% in 2022 and to just 2.7% in 202...

Like any process, getting clients to pay for the services that MSPs deliver is a continual journey. Collections is not a one-and-done venture but an area the management and financial accounting teams must periodically review and upgrade as clients, operations, back-office tools, and portfolios evolve. The strength of their cash flow and business health depends on the success of continuous improvement in processes and policies. No organization can defy basic business principles. A well-defined and streamlined collections process is essential to the financial health of every company. Growing Monthly Recurring Revenue (MRR) means nothing without the proper systems and checks and balances—ensuring that extra income is effectively converted from invoices to cash in the bank for an MSP. Higher Accounts Receivables (A/R) should never be the ultimate objective. Every sales growth plan should include a review of the collections process to ensure all that hard work doesn’t go without reward. M...

While workplace stress and task overload are long-standing business concerns, the global pandemic and ensuing labor shortages have escalated those problems. Those issues are doubly concerning for IT services owners, with costs on the rise and hiring challenges forcing many to work even harder to keep profits in line with expectations. Those are just a few factors behind the increase in MSP burnout.    That tide affects owners and workers in virtually every industry. Approximately 50% of employees and 53% of managers say they are burned out, according to a recent Microsoft survey of 20,000 people in eleven countries. Those numbers are likely higher than the norm in the IT industry as demand for computer support grows exponentially. At the same time, the supply of qualified technicians, engineers, sales professionals and other specialists lags far behind the need. The rise in employee no-shows and “quiet quitting” creates even more stress for business owners. When workers fee...