Podcast · Talk Tech with Rob Scott

How Profit First Turns Average MSPs into Best-in-Class Businesses

Bill Blaser from MSP Growth Solutions delivers a data-driven playbook for turning average MSPs into best-in-class operations. His approach starts with the "Profit First" methodology: take profit befor...

Episode summary

Bill Blaser from MSP Growth Solutions delivers a data-driven playbook for turning average MSPs into best-in-class operations. His approach starts with the "Profit First" methodology: take profit before expenses, price correctly for your market, and track gross margin by service line. Bill explains how right-sizing staffing, eliminating wasteful growth spending, and improving cash flow create the foundation for sustainable, profitable growth.

The conversation also tackles sales strategy for founder-led MSPs. Bill recommends selling in targeted verticals with a repeatable process before investing in dedicated sales hires. His core message is that small revenue lifts, when paired with disciplined cost management, can drive outsized profit gains. For MSPs stuck on the revenue treadmill, this episode provides a clear path to profitability without requiring more top-line growth.

Key takeaways

  1. The Profit First methodology forces financial discipline by allocating profit before expenses.
  2. Tracking gross margin by service line reveals which parts of your business are actually profitable.
  3. Right-size staffing and cut wasteful growth spending before chasing more revenue.
  4. Build a repeatable, founder-led sales process in targeted verticals before hiring salespeople.
  5. Small revenue improvements combined with cost discipline produce disproportionate profit gains.

"Most MSPs don't have a revenue problem. They have a profitability problem, and it starts with not knowing their numbers by service line."

- Bill Blaser

Show notes

Guest Introduction

Bill Blaser is the founder of MSP Growth Solutions, where he helps managed service providers build financially disciplined, operationally mature businesses. Bill brings a data-driven approach to MSP profitability, combining the Profit First methodology with deep experience in service line economics, staffing optimization, and founder-led sales strategy. His perspective matters because most MSPs chase revenue growth without understanding which parts of their business are actually profitable, and Bill has built a practice around fixing that blind spot.

What We Cover

What Is the Profit First Methodology and How Does It Apply to MSPs?

Bill breaks down the core principle of Profit First: allocate profit before expenses, not after. For MSPs, this means setting aside a target profit percentage from every dollar of revenue before paying operating costs. The discipline forces owners to run leaner, make smarter spending decisions, and stop treating profit as whatever happens to be left over at the end of the month.

Why Gross Margin by Service Line Is the Most Important Number in Your MSP

Most MSPs track top-line revenue but have no idea which service lines are profitable and which are dragging the business down. Bill explains how to calculate gross margin by service line, including managed services, projects, and break-fix, so owners can make informed decisions about where to invest and what to cut. This level of visibility is the difference between growing intentionally and growing blindly.

How to Right-Size Staffing Without Sacrificing Service Quality

Overstaffing is one of the biggest profitability killers for growing MSPs. Bill walks through how to evaluate whether your headcount matches your revenue, and how to make adjustments without compromising the client experience. The key is benchmarking against industry standards and understanding the revenue-per-employee ratios that best-in-class MSPs hit consistently.

When Should a Founder-Led MSP Hire Its First Salesperson?

Bill's advice goes against conventional wisdom: do not hire a salesperson until you have a repeatable sales process in targeted verticals. Founders should sell directly, learn what works, document the playbook, and only then bring on a dedicated sales hire. Jumping to a sales hire too early often means paying someone to figure out a process the founder should have built first.

Small Revenue Lifts That Produce Outsized Profit Gains

Bill makes the case that most MSPs do not have a revenue problem. They have a profitability problem. When you combine even modest revenue improvements with disciplined cost management, the profit impact is disproportionate. He shares examples of MSPs that moved from average to best-in-class by focusing on margins and efficiency rather than chasing more top-line revenue.

Why This Matters for MSPs

Financial discipline is not glamorous, but it is the single biggest differentiator between MSPs that survive and MSPs that thrive. Whether you are preparing for a private equity conversation, trying to fund your next hire, or simply want to stop feeling like you are running on a treadmill, the Profit First approach gives you a clear framework. Paired with strong contracts that protect the revenue you are working so hard to earn, financial discipline becomes the foundation for sustainable, scalable growth.

About the Show

Talk Tech with Rob Scott is a podcast series from Monjur where CEO Rob Scott sits down with MSP industry leaders to explore the strategies, tools, and trends shaping managed services. New episodes are published regularly on YouTube. Subscribe to stay ahead of what is next in the MSP channel.