Many MSP owners start their business because they are great at solving problems. They know the technology, understand the clients, and are willing to do whatever it takes to keep the company moving.
But over time, that same strength can become the bottleneck.
In this episode of Stride Live, Casey Seaborn spoke with Brian Hoppe, strategic coach, executive coach, advisor, and thought partner for MSP owners and leadership teams. Brian works with MSPs on building stronger leadership, better processes, and more valuable businesses. The conversation focused on one major shift every MSP owner eventually has to make: moving from daily operator to true owner.
The goal is not just to grow revenue. It is to build a business that is easier to run, less dependent on the owner, more profitable, and more valuable over time. Brian framed it clearly: every owner will exit eventually, so the better question is whether the business will be ready when that time comes.
Below are the key takeaways from the conversation.
1. “MSP Owner” Is Not a Job
One of Brian’s strongest points was simple: MSP owner is not a job.
You may have a job inside your MSP. You might act as CEO, salesperson, head technician, finance lead, or service manager. But ownership itself is different. Ownership means you have an asset. That asset should be measured, improved, protected, and grown with intention.
Brian encouraged MSP owners to ask a direct question:
If you did not already own this business, would you buy it?
That question forces a different kind of thinking. Instead of asking, “What fire do I need to put out today?” owners can begin asking:
- How is this asset performing?
- Is the business creating the value I want?
- Is it too dependent on me?
- What would need to change for this to become a stronger investment?
2. Owner Dependency Limits Enterprise Value
Many MSP owners are still at the center of every major function. Sales depends on them. Escalations depend on them. Client relationships depend on them. Financial decisions depend on them.
That may work for a while, but it creates a ceiling.
Brian explained that MSPs cannot effectively scale if the owner is trying to be the center of everything. Even if the owner does not want to be the bottleneck, they may have built a company where every key decision still runs through them.
Casey summarized the concept well:
Do not be the cog running the whole machine. Be the one fine-tuning it from above.
That does not mean the owner becomes passive. It means the owner builds the systems, leadership, and accountability needed for the business to function without constant intervention.
Tip:
Look at each area of your MSP, including operations, sales, finance, marketing, and client success. Ask: “Am I an asset here, or am I a crutch?” The areas where the business is most dependent on you are the areas to address first.
3. Financial Clarity Is the Scoreboard
You can’t build enterprise value if you do not understand your numbers.
Casey emphasized that many MSPs are still working from generic charts of accounts created by general CPAs or accountants. The issue is not always whether the books are technically accurate. The issue is whether they clearly reflect how an MSP actually operates.
For MSP owners, financial reporting needs enough granularity to show what matters:
- Managed services revenue
- Project revenue
- Gross margin by service line
- Labor cost
- Profitability
- Cash flow
- Budget performance
- Trends over time
Without that clarity, owners are often trying to make strategic decisions without a reliable scoreboard.
At Stride, this is why we often talk about building an MSP-specific financial foundation. Not every MSP needs the exact same reporting structure, but owners need financials that show how their business is actually performing.
4. Best-in-Class MSPs Build the Plan and Work the Plan
Brian pointed out that the difference between best-in-class MSPs and everyone else is not usually geography, company size, tools, or client base.
It is the leadership team’s ability to create a plan and manage to it.
That means setting a realistic budget before the year starts, aligning leadership around the plan, reviewing performance monthly and quarterly, and making adjustments in real time.
Too many MSPs build a budget once, miss the target early, and then let the rest of the year drift. Brian gave a simple example: if an MSP budgets for $5,000 in new monthly recurring revenue in January, but there is no real pipeline to support it, the budget can be off by $60,000 almost immediately.
Best-in-class operators do not just hope the plan works. They manage behavior, decisions, hiring, spending, and sales activity around the plan.
Tip:
A good budget should be achievable, but still a stretch. It should guide decisions throughout the year, not sit untouched after January.
5. Growth Requires a Real Sales Engine
Once an MSP has solid gross margin, strong profitability, and clearer operating discipline, the next challenge is often growth.
Brian noted that many MSPs reach a point where they are ready to grow, but they do not have a sales engine capable of producing predictable new managed services revenue.
Casey added that the MSPs seeing stronger growth often have two things in common:
- A clear differentiator and a well-defined ideal client profile
- A consistent, repeatable sales process that produces new logo MRR
This is the difference between order-taking and building a true growth engine. Referrals and renewals matter, but enterprise value grows faster when the business can consistently create new opportunities, close new clients, and measure what is working.
6. Buyers Look Beyond Revenue and EBITDA
Revenue and EBITDA matter, but they are not the whole story.
Brian explained that sophisticated buyers are not simply applying a fixed multiple based on revenue and profit. They are looking at a broader set of value drivers, including:
- EBITDA
- Contract quality
- Client retention
- Client concentration
- Growth rate
- Profitability
- Owner involvement
- Leadership depth
- Operational maturity
He also referenced the “Rule of 40” concept, where a combination of growth and profitability around 40% can help indicate a premium asset. For example, an MSP growing 20% while also producing 20% profit is much more attractive than a business with weak growth and thin margins.
Owner dependency is especially important. If the owner is heavily involved in sales, client relationships, or key decisions, a buyer may see risk. If the business can continue growing without the owner driving every function, that supports stronger enterprise value.
Tip:
Don’t wait until you are preparing to sell to reduce owner dependency. The same work that makes your MSP more sellable also makes it more enjoyable and easier to run now.
7. Build the Business for the Outcome You Want
Toward the end of the conversation, Brian brought the discussion back to planning.
If you want your MSP to generate a specific financial outcome, build the plan around that outcome. If your goal is to eventually create $10 million of after-tax value, you need to understand what the business must become to support that result.
That includes:
- Seeing the MSP as an asset, not just a job
- Taking yourself out of daily operations
- Delegating key functions
- Giving capable leaders real decision-making authority
- Understanding your numbers
- Building a leadership team that can execute the plan
- Creating a business that can grow without depending on you every day
Brian’s final takeaway was clear: enterprise value increases when the owner becomes less essential to the daily operation of the business.
Final Thoughts
Moving from MSP operator to owner is not a one-time decision. It is a series of intentional changes.
You need clearer financials. You need stronger processes. You need a leadership team that can make decisions. You need a plan for growth. You need to reduce owner dependency. And you need to treat your business like the asset it is.
For MSP owners, this work matters whether you want to sell in the next 18 months or keep building for the next 10 years. A business with strong financial clarity, operating discipline, leadership depth, and less owner dependency is not only more valuable to a buyer. It is also more sustainable for the owner.
You focus on building the business. We’ll help make sure the financial foundation can support where you want to take it.
Watch the Replay
Want to hear the full conversation with Brian Hoppe?
Watch the Stride Live replay here:
https://www.linkedin.com/events/stridelive-frommspoperatortoown7457887720258969600/theater/
About Brian Hoppe Coaching
Brian Hoppe is a strategic coach, executive coach, advisor, and thought partner for MSP owners and CEOs. He works with MSP owners and leadership teams to help them build stronger processes, improve operational maturity, reduce owner dependency, and increase enterprise value.
Learn more at:https://brianhoppe.com/
About Stride Services
This Stride Live Webinar is hosted by Stride Services. Stride is a comprehensive financial solutions provider specializing in outsourced bookkeeping, accounting, tax, and advisory services for Managed Service Providers.
Learn more at: https://stride.services
If you’re interested in being a featured guest on our Live Webinars or if there’s a subject matter expert you’d like us to interview, please CLICK HERE and let us know!
