What are the top three metrics you use to measure your business and why?
Managing metrics is a key factor for a successful MSP. TeamLogic IT has an initiative called “metrics that matter.” Our initiative focuses on five key metrics, including the following: percentage of monthly recurring revenue (MRR), customer retention rate, and net operating income trends. All of these metrics are connected with one another. Similar to your doctor checking your pulse, temperature, and blood pressure, you can tell a lot about a business based on these metrics. For example, a company with high MRR and high retention rates typically has a higher net operating income.
What is the top lesson you had to learn that allowed you to kick-start your business growth?
I have been fortunate to work with a number of successful start-ups throughout my career, including Kaseya, one of the MSP platform companies. I would tell any entrepreneur to develop a plan and stick with it. For MSPs, the plan needs to include your market segment, who your target customer is, and how much they are willing to pay for the value of your service. Also, entrepreneurs need to understand the service levels it will take to make your customers happy, with health margins that build a successful MSP organization. While nothing ever goes exactly to plan, if you don’t have a plan, you don’t have a way to measure your successes, failures, or where to correct the course.
What was your “secret to success” this past year? (When considering your most recent YoY growth, what was the one thing driving it or what was most impactful to reaching that growth?)
Our success hasn’t been driven by one thing, and those success drivers aren’t necessarily a secret! At TeamLogic IT, we have no secrets and no silver bullets for success. Honestly, it comes down to our team and our values. It’s hard work, commitment, urgency, transparency, and a passion for excellence. If there was one thing I had to choose, I would say the team has made all the difference. That includes our corporate staff, owners, technicians, and all others involved in the daily activities of TeamLogic IT. We wouldn’t be where we are today without such a dedicated team across the nation. Our core values are what guide us in our day-to-day business decisions.
What was the biggest challenge you had to overcome this past year related to either reaching your growth or as a result of that growth?
The biggest challenge in our industry is finding the right people to join our team. In the technology industry, there is a skills gap. Many new entrants into the workforce think technology jobs are only at app developers, social media companies, or tech giants like Microsoft, Apple, Google, and Facebook. It is critically important to hire the right people with the right skills, the right values, and the passion to help small businesses succeed. Having the right people could be the difference between failure and success for a fast-growing managed IT service provider.
Who would you say is the most impactful business leader or business thought-leader whose techniques or leadership style you try to emulate, follow, or are influenced by, and why?
We are blessed at TeamLogic with our chairman Don Lowe. Don has 40-plus years of business experience that he brings to work with him every day. One of his best pieces of advice is this: “It’s easier to create a company culture than it is to change a company culture.” Our company culture is so important because we’re in a service industry. Our team needs to know how to do the right thing to help our owners succeed. Don laid the groundwork for our company culture and has guided us in the direction we are headed today.
What are some partners that have supported you during your company’s growth?
We have a couple suppliers that have helped us grow our business. Kaseya is our platform of choice for our remote monitoring and management system. Their support has been fantastic. We couldn’t ask for a better management system. We use Autotask for our HR and accounting needs and Sophos for all of our cybersecurity. Without these companies, we wouldn’t be able to grow at the rate we have.
What book would you recommend to other MSPs or SMBs trying to grow their businesses?
I have always been a fan of Michael Lewis. He has chronicled so many industries, including Wall Street, baseball, and the technology industry. For anyone who wants to understand the roots of our industry, I recommend reading “The New New Thing.”
In closing, do you have any specific advice or words of wisdom for MSPs looking to grow or build a successful exit for their business?
If you want to be successful in this business, you have to focus on metrics, customer service, and leadership. If you focus on these things, your company will be successful. As a managed IT service provider, we spend a lot of time ensuring our clients are secure. To be successful, you have to keep in mind your own security as much as your clients’ security. This will help maintain the reputation for your brand, as well as the reputation of the managed IT service industry. Live by your values and your success will follow.
Company: TeamLogic, Inc.
Headquartered: Mission Viejo, California
Geographical Markets Served: Approaching 200 locations nationwide
Top Growth Indicator: TeamLogic IT uses a franchise model, which is uncommon in the managed service industry. What’s more, the growth for each individual franchise is driven by our integrated marketing system. Our comprehensive program drives profitable growth for cybersecurity, business continuity and disaster recovery, cloud services, and managed IT services.
YoY Percentage Of Revenue Growth: TeamLogic IT has grown at a rate of 28% per year over the past five years. This growth is a testament to the monthly recurring revenue model of managed IT services.
President: Dan Shapero