Growing an MSP is rarely about landing the next big deal. More often, it’s about discipline: knowing what you do well, doing it consistently, and resisting the urge to chase every shiny new opportunity.
That’s the advice of Russell Reeder, founder and CEO of strategic advisory firm KeyDelta and former CEO of large MSP XTIUM, who recently spoke with ChannelPro about finding success in the IT channel. With decades of experience running MSPs and leading large-scale growth through both organic expansion and acquisitions, Reeder sees the same mistakes repeated again and again.
5 Ways to Scale Your MSP Without Sacrificing Customer Service
Here’s how MSPs can scale to the next level without breaking what already works.
1. Start Scaling Before the Sale Closes
Many MSPs treat customer success as something that begins after the contract is signed. That’s a mistake.
The foundation for long-term growth is set much earlier, during the sales process itself, Reeder said. MSPs that oversell, underqualify prospects, or promise services they can’t consistently deliver end up creating friction that limits future growth.
Instead, here are some steps taken by successful MSPs:
- Qualify prospects carefully and sell only what you can deliver well.
- Set expectations clearly before the deal closes.
- Begin onboarding and planning early so there’s no handoff gap between sales, implementation, and operations.
As Reeder put it, “That ruthless focus on customer satisfaction actually starts in the sales cycle.”
2. Stay the Course Until You Earn the Right to Expand
One of the fastest ways to stall growth is to say yes to everything.
MSPs often struggle when they create one-off solutions for individual customers that can’t be standardized or scaled. Over time, that complexity eats away at margins and operational efficiency.
To avoid that trap, MSPs should:
- Define your core offerings and build repeatable services.
- Focus on industries or use cases where you can be true experts.
- Measure success by margins, not just revenue.
“If you don’t have 50% gross margins in a specific vertical, you should probably try harder,” Reeder advised.
Only after achieving consistent margins and operational maturity should MSPs consider moving into a new vertical or expanding services.
3. Treat Customer Focus as a Companywide Discipline
Customer satisfaction isn’t owned by a single team. It’s the result of alignment across sales, service delivery, and leadership.
Growth-minded MSPs invest just as much energy into their teams as they do into their clients.
Key steps include:
- Clearly define what success looks like for every role.
- Cascade company goals down to every level of the organization.
- Provide employees with the tools and training they require to do their jobs well.
“Your customers are only as happy as your least happy employee,” Reeder said.
4. Be a Trusted Advisor, Whether You’re Asked or Not
Many MSPs underestimate how clients view their role. Even if they’re only contracted for a narrow service, customers often assume their MSP will proactively flag risks and opportunities. That creates both a responsibility and an opportunity.
Russell Reeder
MSPs that want to grow should:
- Ask deeper questions about security, compliance, and business risk.
- Share insights drawn from patterns you see across multiple clients.
- Speak up before issues become problems.
“If MSPs don’t really believe that they’re a full technical advisor, they’re missing an opportunity,” Reeder noted. “Because the client thinks you are.”
5. Don’t Let Information Become Power
As MSPs grow, leadership habits matter more than ever.
One common mistake, Reeder noted, is that executives treat information as leverage instead of a shared asset. That approach slows decision-making and creates silos that make scaling harder.
For sustainable growth, MSP leaders must:
- Share performance data openly with leadership and managers.
- Align teams around common metrics and outcomes.
- Encourage transparency so everyone understands how their role supports the company’s goals.
Clear communication is one of the most cost-effective growth strategies available, according to Reeder.
The Bottom Line
Scaling an MSP isn’t about doing more things. It’s about doing the right things consistently, profitably, and with focus.
For IT service providers looking to reach the next stage of growth, Reeder’s advice is simple.
“Don’t sell just anything to anyone. Pick your focus. What are you good at? What’s your unique competitive advantage? Having smart people is not unique. You can’t corner the market on smart. So, really figure out what’s your unique competitive advantage and stay in your lane.”
Next Steps
- Want more helpful guidance on this topic? Check out our Running a Profitable MSP Answer Center
- Have a question for our experts? Send it to editors@channelpronetwork.com
Featured image: Parradee — stock.adobe.com
