Building a $20 Million MSP: Insights from Brian Strong of TenHats

Managed Service Providers (MSPs) face measurable hurdles when scaling businesses past certain revenue thresholds, particularly the $10 million annual mark. The episode’s primary focus is the operational and sales methodologies implemented by Brian Strong, who reported helping lead an MSP from $2.2 million to $19 million in annual revenues over five years. This growth was attributed to instituting systematic sales processes, prioritizing revenue generation, and building organizational redundancy, which Strong identified as essential for sustaining and supporting large-scale managed services operations. Supporting this central narrative, Strong detailed specific challenges encountered, such as a company operating at a $300,000 monthly loss after an acquisition, with survival requiring accelerated sales volumes rather than cost-cutting alone. Growth strategies were based on methodical sales enablement, including tracking KPIs, transparent open-book management, and aligning hiring practices with the organization’s long-term scaling goals. Notably, Strong emphasized targeting larger accounts and developing specialized technical talent to build resilience and capabilities across departments. The conversation also addressed industry-wide patterns, noting that many MSPs remain “stuck” below the $10 million revenue band. According to Strong and Speaker B, a key obstacle is the lack of systems and staffing that enable owners to delegate daily operations and sales functions. Both speakers noted that relying solely on owner-operators impedes scale, and emphasized the need for targeted recruitment, standardized processes, and deployment of appropriate technologies to enable sustainable growth and improved customer service delivery. For MSPs and IT leaders, these discussions underscore the necessity of robust, replicable sales processes, transparent operational metrics, and talent strategies designed for organizational redundancy and scalability. Risks of stagnating at lower revenue levels include limited service capacity, inability to serve mid-market clients, and heightened vulnerability to market or talent disruptions. Organizations seeking to grow beyond these barriers must invest in their people, formalize their processes, and ensure leadership is accountable for both revenue generation and operational sustainability. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.