Channel Veteran Shares Tale Of Turbulence, Boosted Growth After MSP Acquisition
‘We’re building a long-term, dependable business,’ says Jason Wright, CEO of Avatar Computer Solutions. ‘And if our growth is any sign, that approach resonates with our clients. If you're not using a story to sell, you're losing.’
"I thought it was April 1," Wright said, explaining he initially thought the sparse staffing the company had was an April Fool’s joke.
The acquired company had two employees and four contractors at the time, a far cry from what was needed to sustain and grow a competitive MSP, he said.
Wright, CEO of Avatar Computer Solutions based in Houston who has more than 20 years of experience in the channel, quickly outlined a new vision to stabilize the company that involved building a robust team, defining market goals and focusing intensely on growth through monthly recurring revenue (MRR).
"I didn’t start with strategic planning or mission statements,” he said to a room full of MSPs at The Channel Company’s XChange NexGen conference in Houston this week. “I just knew we had to sell as much MRR as possible.”
After a year, he re-evaluated and brought on strategic hires to assist in setting structured goals: "We finally sat down and said, ‘What are the big rocks?’”
[Related: M&A Expert To MSPs: Ask The Hard Questions, Do Your Research When Looking To Sell]
By zeroing in on mid-sized clients with 100 to 500 users, he began implementing a tiered pricing model focused on selling the MSP’s value from the outset rather than low-entry pricing with later upsells.
"I’d rather establish credibility and trust up front. It’s a better path to profitability," he said.
He also began investing in scalable infrastructure to handle rapid growth, including adopting cybersecurity frameworks like CIS and working with partner companies to fill talent gaps.
Additionally, he set up several operational strategies that became key to the company’s growth. "One of the first things we did was adopt the Entrepreneurial Operating System (EOS)," he said. "We had a one-year roadmap for each employee with expectations for certifications and milestones. It’s helped us retain almost all our staff over the last two-and-a-half years."
As the business grew, Wright said that the demand shifted towards a fully managed service offering, which now makes up 65 percent of their portfolio, with 35 percent of clients in a co-managed model.
"We thought our co-managed platform would be the popular option, but it turns out clients were looking for a more fully baked offering,” he said.
After finding stable footing, the MSP continues to thrive with refined offerings and new strategic client acquisitions.
“We’re building a long-term, dependable business,” he said. “And if our growth is any sign, that approach resonates with our clients. If you're not using a story to sell, you're losing.”
Jack Skinner, CTO of Oversee My IT, a Lewisville, Texas-based MSP, said he agreed with Wright’s sentiment in that sales isn’t just about hitting key performance indicators (KPIs) or “drowning clients in technical jargon,” it’s about telling a story that engages.
“When we lead with a compelling narrative, we’re not just selling a product or service, we’re connecting with our audience,” Skinner told CRN. “In this space, if we’re not bringing a story forward, we’re missing the point. And if storytelling isn’t your strength, then find someone on your team who can do it well. This isn’t just about closing a deal, it’s about making people care.”