The IT Experts Podcast

In this episode of The IT Experts Podcast, we explore why owner dependency quietly destroys MSP valuations and what you must do now to build real, transferable value in your business. 

  

If you have ever assumed your MSP will sell when the time comes, this conversation may shift your thinking. Stuart and I unpack a hard truth. A business that cannot run and grow without you will always carry risk in the eyes of a buyer. And risk directly impacts MSP valuations. 

  

We were prompted to record this episode after a sobering conversation with an MSP owner who had attempted to sell multiple times over several years. Each time, buyers began the process. Each time, due diligence exposed weaknesses. Each time, the deal collapsed. Not because the business was small. Not because there was no demand. The issue was clarity, structure, and owner dependency. The business worked for him. It did not work without him. 

  

That distinction is critical. 

  

When buyers assess MSP valuations, they are not buying your effort. They are buying sustainable profit. They are buying systems. They are buying a team. They are buying recurring revenue. They are buying predictability. If you are central to sales, delivery, relationships and decision making, the buyer sees fragility. And fragility reduces multiples. 

  

We often explain valuation through simple maths. Imagine a one million pound MSP generating two hundred and fifty thousand pounds of EBITDA. At a modest multiple, you may walk away with half a million pounds. After decades of work, that can feel underwhelming. The opportunity lies in understanding that MSP valuations are influenced by clear, controllable drivers. 

  

Recurring revenue mix is one of them. Many MSPs above two million pounds in turnover still rely heavily on project income. That may feel exciting and profitable. It also introduces volatility. Increasing recurring revenue from fifty percent to seventy five percent can materially improve how buyers view your stability and future cash flow. 

  

Contract length is another lever. Monthly rolling agreements are easy to sell. They also weaken your negotiating position when it comes to MSP valuations. As your confidence grows, building longer term agreements with clients strengthens predictability and reduces perceived risk. 

  

Service gross margin is often overlooked. Buyers want to see not only recurring revenue, but recurring margin. They want to understand the efficiency of your service desk and the return generated per technician. Strong revenue per full time employee signals operational maturity. Clean numbers, transparent reporting, and clear profitability remove doubt during due diligence. 

  

Then there is client concentration. Over-reliance on one or two major clients creates vulnerability. Strengthening account management, spreading revenue more evenly, and improving client retention all contribute positively to MSP valuations. 

  

Yet none of these matter fully if the owner remains the bottleneck. 

  

We refer to this as ONN, owner not needed. This does not mean you disappear tomorrow. It means your business can run and grow without your daily involvement. Holidays without disruption are a starting point. True value is created when growth continues even while you step back from delivery. 

  

Building towards ONN requires leadership development, documented processes, empowered managers, and consistent rhythm in reporting and accountability. It is straightforward in principle. It is demanding in practice. Letting go, hiring stronger people, and shifting your leadership style takes intention. 

  

The encouraging news is that this transformation does not require magic tools or dramatic reinvention. It is disciplined business practice. Clear KPIs. Departmental plans. Regular reviews. Consistent focus on sales, account management, people engagement and margin control. When stitched together, these habits compound. 

  

Improving MSP valuations is rarely about chasing a headline multiple. It is about reducing risk and increasing clarity. Buyers walk away when profit is opaque, when dependency is high, and when systems are weak. They lean in when performance is transparent and transferable. 

  

For established MSPs already above one million pounds in revenue, a focused three-year commitment to strengthening structure can materially change exit outcomes. For others, it may take longer. The timeline is less important than the decision to begin. Planning for exit today gives you options tomorrow, even if you choose to continue building. 

  

There is also a powerful side effect. Businesses that reach a strong ONN position often discover they enjoy the work more. Time increases. Profits rise. Acquisition opportunities become viable. MSP valuations improve not only because you are preparing to sell, but because you are building a stronger company. 

  

At some point, every owner will exit. The question is whether you leave with confidence and control, or whether you accept whatever is offered because options have narrowed. 

  

Owner dependency is fixable. Transferable value is buildable. MSP valuations are influenced by the decisions you make now. 

  

If this episode resonated, start by reviewing your recurring revenue mix, contract structure, service gross margin and leadership depth. Build a plan. Work the plan. Stay consistent. 

  

Strong MSP valuations are not accidental. They are earned through structure, discipline and the courage to let go.  

Make sure to check out our Ultimate MSP Growth Guide, a free guide that walks you through a proven process to take your MSP from stuck to scalable, without working even more hours. It's 44 pages rammed with advice, insights and inspiration to help you decide what support is available to you now if you want to grow and scale your business. Click HERE to get your copy. 

 

Connect on LinkedIn HERE with Ian and also with Stuart by clicking this LINK 

 

And when you're ready to take the next step in growing your MSP, come and take the Scale with Confidence MSP Mastery Quiz. In just three minutes, you'll get a 360-degree scan of your MSP and identify the one or two tactics that could help you find more time, engage & align your people and generate more leads. 

OR  

To join our amazing Facebook Group of over 400 MSPs where we are helping you Scale Up with Confidence, then click HERE 

Until next time, look after yourself and I'll catch up with you soon!

In this episode of The IT Experts Podcast, I want to speak directly to MSP owners who are getting Groundhog Day vibes from their business. That sense that every week feels the same, the same problems keep resurfacing, and despite working hard, progress feels slow or non-existent. If Groundhog Day vibes are creeping into your MSP, this conversation will resonate deeply. 

  

I was joined by Stuart Warwick in the podcast lounge, and we went straight into the reality behind that familiar sigh many MSP owners make. It does not matter what time of year it is. When Groundhog Day vibes show up, it usually means the business has reached a ceiling created by habits, structure, and leadership patterns that once worked and no longer do. 

  

We talked about how easy it is to stay busy while staying still. Many MSPs operate in a steady rhythm where the business pays the bills and supports a decent lifestyle. On the surface everything looks fine. Underneath, there is often frustration and a sense that something more was meant to happen by now. When Groundhog Day vibes become normal, it is a sign that the business is not aligned with the original vision that drove you to start. 

  

One of the biggest themes in the conversation was owner dependency. Most MSP owners built their business because they love technology and solving problems. Being needed feels good and that feeling can quietly turn into an addiction. Over time, this keeps you trapped in the day to day and limits growth. When Groundhog Day vibes keep returning, it is often because you have not decided what you are willing to let go of.  

   

We also spent time talking about the role your team plays. I see this repeatedly inside The MSP Growth Hub. Owners underestimate the capability and appetite of their people. When Groundhog Day vibes take hold, it is often because the team has not been invited into the bigger picture. When you involve them properly, energy changes. Ownership grows. Momentum starts to build in ways that surprise most owners.  

  

Stuart shared a simple and practical starting point. Stop and take an honest audit of your business. Look at operations, projects, sales, marketing, finance, billing, and admin. Notice what drains you and what energises you. When Groundhog Day vibes are present, this exercise brings clarity quickly. From there, the work becomes about spending more time on the areas that move the business forward and less time on the tasks that keep you stuck. 

 

We also explored leadership and culture. Whether you realise it or not, you set the tone for everything. Your team watches what you prioritise and what you tolerate. When expectations are unclear, people fill the gaps themselves. If Groundhog Day vibes persist, it often points to missing structure, unclear standards, or a lack of shared direction. This is not about blame. It is about growth as a leader. 

  

Consistency was another key part of the discussion. Change does not come from motivation alone. It comes from rhythm and follow-through. Write things down. Decide what success looks like. Check in regularly. When MSP owners fall back into old habits, it is usually because progress was not being measured. Groundhog Day vibes thrive in the absence of accountability.  

  

We also talked about what life can look like on the other side of this. Progress shows up in numbers, in time, and in satisfaction. Better margins. More space in your diary. Time to think and lead. When owners look back after a year of intentional action, they are often shocked by how much has changed. If Groundhog Day vibes are present today, that future is still available to you. 

  

This episode is a reminder that you are not stuck. You are where you are because of past decisions and actions, which means new decisions create new outcomes. Your team can be part of the solution. Structure can work in your favour. Momentum can be rebuilt. You do not have to keep reliving the same week on repeat.  

Make sure to check out our Ultimate MSP Growth Guide, a free guide that walks you through a proven process to take your MSP from stuck to scalable, without working even more hours. It's 44 pages rammed with advice, insights and inspiration to help you decide what support is available to you now if you want to grow and scale your business. Click HERE to get your copy. 
 

Connect on LinkedIn HERE with Ian and also with Stuart by clicking this LINK 
 

And when you're ready to take the next step in growing your MSP, come and take the Scale with Confidence MSP Mastery Quiz. In just three minutes, you'll get a 360-degree scan of your MSP and identify the one or two tactics that could help you find more time, engage & align your people and generate more leads. 

OR  

To join our amazing Facebook Group of over 400 MSPs where we are helping you Scale Up with Confidence, then click HERE 

Until next time, look after yourself and I'll catch up with you soon!

In this episode of The IT Experts Podcast, I want to talk to you about something that does not get enough attention in the MSP space, over-reliance on big clients. This is not about fear mongering or pointing fingers. It is about protecting the business you have worked so hard to build and making sure it is resilient, valuable, and able to withstand shocks that are completely outside your control. 

 

Over the last few weeks, I have seen several MSP owners lose large clients through no fault of their own. Long standing relationships, solid delivery, and good account management were all in place. Then a corporate buyout happened, private equity stepped in, and overnight the MSP was out. If you have ever experienced this, you know how gutting it feels. This is exactly why over-reliance on big clients is such a serious risk, even when everything appears to be going well. 

 

We talk about risk all the time with our clients, cyber risk, security risk, operational risk. Yet many MSPs do not have a proper internal risk register that includes client concentration. If one client makes up more than fifteen to twenty percent of your revenue, that is a risk. If a handful of clients account for half of your income, that risk increases again. Over-reliance on big clients also impacts valuation in a big way. Buyers, banks, and investors all look closely at client concentration when assessing the strength of a business. 

 

One of the traps I see MSPs fall into is assuming their biggest clients are their best clients. Size does not equal profitability. Often the largest clients are the noisiest, the most demanding, and the ones that introduce the most scope creep. Project work can hide this reality for a while, creating the illusion of strong performance, while margins quietly erode underneath. This is how over-reliance on big clients becomes both a financial and emotional burden. 

 

Contracts are another major factor. Weak renewals, rolling monthly terms, and informal agreements leave you exposed when circumstances change. Strong contracts with clear notice periods, structured SLAs, and defined expectations protect both sides of the relationship. I have seen MSPs completely transform their resilience by moving clients onto longer term agreements, creating stability and confidence even in uncertain markets. 

 

I also share practical steps you can take over the next ninety days to reduce over-reliance on big clients. This includes building a healthier pipeline so no single client dominates revenue, strengthening account management across your mid-tier clients, and intentionally growing those relationships instead of focusing all your attention on one whale account. Growth should never come at the cost of balance. 
 

Diversification matters too. That might mean going deeper into a vertical you already serve, refining your niche, or improving the mix between recurring revenue and project work. Over-reliance on big clients often creeps in when project revenue masks a lack of predictable monthly income. The managed service model works best when recurring revenue is the foundation. 

 

Pricing and packaging play a role here as well. Minimum standards, minimum security, and minimum value help ensure every client contributes fairly. When profitability improves, cash reserves improve, and cash gives you breathing space. It is not about comfort, it is about protection. 

 

Finally, I talk about the importance of proper account management that does not sit solely with the owner. When relationships and value delivery are embedded into clear processes, the business becomes stronger and less dependent on any one person or client. This shift is critical if you want to scale with confidence and reduce over-reliance on big clients in a sustainable way. 
 

I will leave you with a simple challenge. Review your top ten clients, look honestly at your concentration risk, and choose one action you can take in the next seven days to make your MSP safer, stronger, and more resilient. Over-reliance on big clients is not a failure. It is a signal. And with the right structure in place, it is a risk you can actively reduce.  

Make sure to check out our Ultimate MSP Growth Guide, a free guide that walks you through a proven process to take your MSP from stuck to scalable, without working even more hours. It's 44 pages rammed with advice, insights and inspiration to help you decide what support is available to you now if you want to grow and scale your business. Click HERE to get your copy. 
 

Connect on LinkedIn HERE with Ian and also with Stuart by clicking this LINK 
 

And when you're ready to take the next step in growing your MSP, come and take the Scale with Confidence MSP Mastery Quiz. In just three minutes, you'll get a 360-degree scan of your MSP and identify the one or two tactics that could help you find more time, engage & align your people and generate more leads. 

OR  

To join our amazing Facebook Group of over 400 MSPs where we are helping you Scale Up with Confidence, then click HERE 

Until next time, look after yourself and I'll catch up with you soon!

In this episode of The IT Experts Podcast, I sit down with leadership coach Julie Hutchison to explore what it really takes to supercharge your MSP by growing future leaders from within your existing team. This is a topic that comes up time and time again with MSP owners who want to scale with confidence and stop being the bottleneck in their own business. The conversation is practical, honest, and rooted in what we see working every day inside The MSP Growth Hub. 

  

I speak to many MSP owners who understand that leadership matters, yet feel unsure about what to do once they spot someone with potential. Growing future leaders is not about handing out titles or sending someone on a course and hoping it sticks. It is about creating the right environment where people can step up, build confidence, and perform in a way that supports the direction of the business. 

  

Julie shares insights from the work she has been doing with multiple cohorts of future leaders inside The MSP Growth Hub. One thing becomes clear very quickly. Learning only works when it is applied. Information without implementation leads to frustration. Confidence grows when people are given space to practise, reflect, and talk through the real situations they face inside their MSP each week. 

  

We spend time talking about the role of the business owner in this process. Growing future leaders does not mean stepping away or leaving people to figure it out alone. It means changing how you show up. As owners, we need to be clear on vision, expectations, and outcomes, while allowing future leaders the freedom to find their own way of delivering results. When the outcomes are clear and the guardrails are in place, leaders can act without fear of being micromanaged or overruled. 

  

Another key theme is safety. When someone moves from a technical role into leadership, they are being asked to think and behave differently. They need room to make mistakes, have honest conversations, and understand the impact they have on others. Without a safe environment, confidence drops and progress slows. With the right support, growing future leaders becomes one of the most powerful drivers of performance, communication, and team engagement. 

  

Julie introduces a simple analogy that really resonates. Future leaders need to be at least in the front passenger seat of the business. They understand where the business is going and help navigate the route. When owners constantly grab the wheel or dismiss input, those leaders slowly disengage and retreat. Growing future leaders requires trust, coaching, and a willingness to let go of doing everything your own way. 

  

We also talk about mindset. Leadership is not about creating mini versions of yourself. It is about being clear on outcomes and allowing different styles and approaches to work. When owners focus on results rather than methods, leaders gain confidence and ownership. This shift is essential if your MSP is going to grow beyond your personal capacity. 

  

Communication comes up repeatedly throughout the episode. Julie explains how leadership success often comes down to how conversations are handled. Understanding what drives people, approaching difficult conversations with confidence, and being willing to adjust your own behaviour has a direct impact on performance. When leaders change how they show up, the response from the team changes too. 

  

This episode is a reminder that growing future leaders is one of the most valuable investments you can make as an MSP owner. It reduces pressure, increases resilience, and creates a business that can scale with confidence. With the right structure, support, and mindset, leadership development becomes a strategic advantage rather than a risk.  

 

Make sure to check out our Ultimate MSP Growth Guide, a free guide that walks you through a proven process to take your MSP from stuck to scalable, without working even more hours. It's 44 pages rammed with advice, insights and inspiration to help you decide what support is available to you now if you want to grow and scale your business. Click HERE to get your copy. 
 

Connect on LinkedIn HERE with Ian and also with Stuart by clicking this LINK 
 

And when you're ready to take the next step in growing your MSP, come and take the Scale with Confidence MSP Mastery Quiz. In just three minutes, you'll get a 360-degree scan of your MSP and identify the one or two tactics that could help you find more time, engage & align your people and generate more leads. 

OR  

To join our amazing Facebook Group of over 400 MSPs where we are helping you Scale Up with Confidence, then click HERE 

Until next time, look after yourself and I'll catch up with you soon!

In this episode of The IT Experts Podcast, we dig into why building a real Sales Run Rate is one of the most important disciplines an MSP can put in place if it wants predictable, sustainable growth. Too many MSPs set big revenue goals without ever breaking them down into something tangible, measurable, or shared across the team. This conversation is about changing that pattern and replacing hope with clarity. 

  

I am joined by Stuart Warwick to explore why Sales Run Rate often gets ignored, even though it sits at the centre of confident decision making. Many MSP owners talk about wanting to reach one million or two and a half million in revenue, yet very few can clearly explain what needs to happen month by month to get there. Without a Sales Run Rate, goals remain emotional and aspirational rather than practical and achievable. 

  

The discussion opens by addressing a common frustration. MSPs are busy. They are deep in delivery, firefighting, and client work, which means long term planning often gets pushed aside. Sales Run Rate forces you to stop, step back, and look at the building blocks that sit underneath growth. When you understand what revenue needs to be added each month, each week, and even each day, the mountain suddenly feels climbable. 

  

Stuart explains that Sales Run Rate is not about chasing endless new logos. It is about understanding all the components that make up growth. New business plays a part, yet so does revenue from existing clients, projects, hardware refreshes, and improved account management. When MSPs break their numbers down properly, they often realise that a large percentage of growth is already happening inside the client base they have today. 

  

A key theme in the episode is confidence in numbers. Many MSP owners avoid their financials because they feel overwhelming or unclear. Sales Run Rate connects sales activity directly to budgets, forecasts, and real outcomes. Once the numbers make sense, confidence grows. With confidence comes better decisions, whether that is hiring, investing in systems, or planning for the future. 

  

The conversation also highlights the power of involving the whole team. Sales Run Rate is not owned by one person. When the goal is broken down and shared, support teams, engineers, and account managers can all see how their daily actions contribute. Listening for opportunities, asking better questions, and helping clients make informed decisions becomes part of normal service delivery rather than something labelled as selling. 

  

We also talk about how this shift changes culture. Sales stops being a dirty word and starts becoming a shared responsibility rooted in helping clients get the most from technology. When teams understand the impact of small actions repeated consistently, momentum builds. Progress becomes visible, measurable, and something worth celebrating each month. 

  

The episode also touches on long term outcomes. A clear Sales Run Rate supports healthier margins, stronger service delivery, and a more valuable business. MSPs that understand their numbers are better positioned to reduce risk, diversify revenue, and prepare for eventual exit if that is part of their plan. Growth stops being accidental and starts becoming intentional. 

  

This conversation is a reminder that Sales Run Rate does not need to be complex. It needs to be visible, realistic, and reviewed regularly. When MSP owners take the time to break goals down, communicate them clearly, and review progress with the team, growth stops feeling like guesswork and starts feeling manageable. 

  

If you want to take control of your growth rather than hoping for it, this episode will help you rethink how you approach revenue, planning, and team involvement. Sales Run Rate is not about pressure. It is about clarity, rhythm, and building a business that works for you. 

 

Make sure to check out our Ultimate MSP Growth Guide, a free guide that walks you through a proven process to take your MSP from stuck to scalable, without working even more hours. It's 44 pages rammed with advice, insights and inspiration to help you decide what support is available to you now if you want to grow and scale your business. Click HERE to get your copy. 

Connect on LinkedIn HERE with Ian and also with Stuart by clicking this LINK 

And when you're ready to take the next step in growing your MSP, come and take the Scale with Confidence MSP Mastery Quiz. In just three minutes, you'll get a 360-degree scan of your MSP and identify the one or two tactics that could help you find more time, engage & align your people and generate more leads. 

OR  

To join our amazing Facebook Group of over 400 MSPs where we are helping you Scale Up with Confidence, then click HERE 

Until next time, look after yourself and I'll catch up with you soon!