Jim Lippie has seen the MSP industry from multiple sides. He joined Thrive Networks in 2003, later became CEO, and eventually moved into the software side of the industry. Today, with Kaseya, he brings lessons from both worlds.
In this week’s MSPInfluencer Primecast, Lippie explains that his years in software taught him principles he wishes he could take back to his MSP days. From operating with greater urgency to understanding customer economics and developing leaders, his perspective offers MSPs several important lessons for building stronger businesses.
1. Bring Greater Urgency to the Business
One of the biggest differences Lippie sees between software companies and MSPs is urgency.
Software companies often operate with investors expecting a return, creating pressure to perform and a different level of operating discipline. Many MSPs, by comparison, have traditionally been independently owned and operated.
Lippie believes the urgency he experienced in software changed the way he thought about running a business. Looking back, it is one of the disciplines he would bring with him if he could return to running an MSP today.
2. Understand the Cost of Winning a Customer
Customer acquisition cost, or CAC, is another metric Lippie says receives much greater scrutiny in software.
During his MSP days at Thrive, the company tracked customer acquisition costs, but not with the same level of attention he later experienced in software. Lippie believes many MSPs today may not know exactly what it costs them to acquire a new customer.
Understanding CAC gives an MSP greater visibility into what it is investing to generate a new logo and provides another way to evaluate the economics behind growth.
3. Pay More Attention to Existing Customer Growth
Lippie also points to upselling, cross-selling and net retention as areas where his software experience changed his thinking.
He describes net retention as the result of upselling and cross-selling, minus customer churn. It is a metric he says he would pay much more attention to if he were running an MSP today.
That perspective shifts some of the growth conversation away from constantly acquiring new customers. The customers an MSP already serves can also contribute to growth when the business successfully expands those relationships while controlling churn.
4. Develop Leaders, Not Just Managers
For Lippie, leadership goes beyond supervising people and making sure work gets done. He believes someone truly becomes a leader when they can help create another leader.
That requires establishing a vision, explaining why it matters and getting people to understand why their work is important. Lippie describes leadership as the ability to win over “hearts and minds” and create a sense of ownership around where the organization is going.
He also points to the people he worked with earlier in his career who later became successful leaders themselves as one of the most satisfying parts of his career.
What This Means for MSPs
Lippie’s perspective connects growth with discipline. Greater urgency, a clearer understanding of customer acquisition costs, stronger attention to net retention and better leadership can all contribute to a more deliberate approach to running an MSP.
His own philosophy is straightforward: good decisions combined with great effort lead to desired results. For MSPs navigating an increasingly competitive industry, that combination of discipline, measurement and leadership provides a strong foundation for growth.