Selling Programming - For Better or Worse

Programming - For Better or Worse

- Lessons Learned, Episode 23

In my last "real" job, I oversaw one programmer who specialized in COBOL and the programs running on our HP 3000 mini, and one programmer who specialized in SQL running on the brand new Windows Servers. I also managed two outsourced programmers who were building our new service entirely in C/C++ and SQL on the Windows platform.

There has always been a lot of money in creating customized programs. In fact, that's pretty much why computers existed from their founding until the 1990's. There were a few general-purpose programs, like word processors, but they didn't dominate the market. Custom built programs and databases were the primary reason businesses bought computers.

The part of this process I enjoyed most was database design. You would never hire me to do the programming because it would be inefficient, but I could visualize the databases, how they interacted, and all the steps to get information in and out of them. After all, that's what the real work of my graduate degrees was all about - since my field was political and social research.

So, when I started my first consulting business, "programming" came with me. I found lots of clients that had been sold various customized database programs over the previous ten years (or more). And just as with the hardware and software, these programs had been sold and then abandoned. The programmers were hard to get ahold of, and only interested in new jobs rather than maintaining the installed base.

Worst of all: When patches and updates were applied to hardware, operating systems, and related software, these old programs began to have failures. This is inevitable when the programs are not updated but everything around them is.

I'd come from a world where annual maintenance was roughly 20-25% of the purchase price of the programming. And while that was a painful price to pay, it meant that my stuff got fixed fast when there was a problem. Now that I was on the selling side of the equation, that maintenance seemed like a better deal.

I tip-toed into programming by fixing things here and there, which required me to hire hourly programmers. As a result, there wasn't much profit. Quickly, I turned to updating programs. This was my most direct recent experience.

We took old programs, like DBase IV databases, and converted them into Microsoft SQL, C+, and even Access if needed. Updating old Access databases to SQL was the most fun.

Before long, my old SQL programmer Bill came calling, and I hired him right away. We knew we worked well together. I knew he understood a very complex environment, and we trusted each other.

For about five years, we designed and he built a series of fresh from-the-ground-up systems that made clients more efficient, and extremely sticky due to the (reasonable) twenty percent maintenance fees we charged. We actually charged a declining fee over time as the likelihood of bugs appearing went down significantly with use. 

Just as with any maintenance contract, we applied all the necessary patches and fixes. So occasional bugs were introduced and fixed. But this was easily covered by the maintenance fees. And it kept us fresh in the clients' minds.

And then Bill had a stroke.

Apparently, it's common that stroke survivors temporarily lose the ability to read. That's what happened to Bill. He could touch-type, but he couldn't read what he'd typed. And since most errors in programming boil down to typos, he was unable to work for some time.

In the meantime, I had a couple of big projects underway, a new one sold, and several under maintenance. So I had to have a programmer! I interviewed a few candidates and hired Greg.

Greg worked out great. Clients loved him. He was more expensive, but he did top-rate work. And then, just after his first year anniversary, he took me to lunch. He told me that he had had a mild heart attack the week before I hired him! 

Greg was about forty at the time, so very young for a heart attack. And he felt guilty for hiding it, but he knew that I'd just lost a programmer to a stroke. What he didn't know is that my father had his first heart attack at age forty and died of a heart attack at age fifty. So this really made me sit  down and think.

In the meantime, I had hired John to retool and modernize all of our web sites. (That's another story for another blog post.) John could handle some straight-forward C+ coding, but his love was on the Joomla/HTML/CSS side of things. This functionality allowed us to significantly improve the visual appeal of our database work without relying on a series of "outside" web designers.

We continued to do programming work together, but I gradually stopped signing new programming contracts. We did take on some new projects with existing clients, but gradually let that part of the business fade away.

My reasoning was two-fold. First, *I* could not do this work, so I had to rely on employees or contractors. Second, having managed programmers for about ten years, I also realized that I needed a team that worked well together and was large enough to both assist each other and allow team members to take vacations and fill in for each other.

Rather than take my IT infrastructure business off on a tangent, I decided get back to my primary mission and move away from programming as a side business. It wasn't my passion, and I was distracting myself by trying to run both sides of the business.

This is not the only time I decided to shrink my offering. It felt like I was at a crossroads: Either grow the programming business or get out. So, I handed off the clients to one of the programmers to manage, and I contracted for support for existing maintenance agreements, knowing they would gradually fade away with time.

Sometimes, a source of income can grow to be a separate, profitable division within your company. But you should always understand the commitment you're willing to make. The more you "stick to your knitting" and focus on what you do best, the more success you'll have going forward.

For me, moving away from programming made the most sense. And, in the end, it made the most money.

All comments welcome.

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Episode 23

This Episode is part of the ongoing Lessons Learned series. For all the information, and an index of Lessons Learned episodes, go to the Lessons Learned Page. https://blog.smallbizthoughts.com/p/lessons-learned-blog-series.html

Leave comments and questions below. And join me next week, right here.

Subscribe to the blog so you don't miss a thing.

:-)

"Relax Focus Succeed" is Born

"Relax Focus Succeed" is Born

- Lessons Learned, Episode 22

A few episodes back, I mentioned that I had been diagnosed with Rheumatoid Arthritis, which greatly affected my ability to work. I started my Relax Focus Succeed newsletter in 2002 (You should subscribe at https://www.relaxfocussucceed.com).

Later that year, I started the RFS blog. My first first blog post laid out my basic philosophy and plan. I didn't realize it at the time, but that blog post was eventually to become the first draft of my book Relax Focus Succeed, first published in 2007!

While living with and coping with my chronic disease, I discovered one of the most valuable habits I've ever developed: Taking time in the morning to be quiet, quiet my mind, take stock of how I'm doing, consider the day ahead, and then: Read and Write.

Part of this routine was directly related to the disease and to pain management. Meditation and mindfulness had led me to start meditating. And in the early years of the disease, I was too stiff and sore for the first hour or two after waking to do very much physical activity. So I sat in a chair and read and wrote.

Eventually, that regular practice became introspective. As my business improved and grew, despite my short work days, I realized that I was achieving more than many people while working a lot less. I was adding clients and "computers under management" at a steady and sustainable pace. 

I was doing in thirty hours per week what most people were not achieving in fifty hours per week.

"Had To" Was Not The Answer

They say necessity is the mother of invention. And you might be tempted to say that I was simply doing what had to be done. But my experience tells me that sincerely desiring something at the highest level, combined with no change in behavior, results in . . . you guessed it . . . no change in results.

I also have a collection of college degrees in the behavioral sciences, so I am a firm believer that actions and behavior are directly related to results and outcomes. Something in what I was doing, including working a shorter schedule, was creating a great deal of success.

I added self-examination journaling to my routine, which eventually led to my personal formula for accomplishing two things at once: Balancing my work and life, and being more successful as a result.

Let me be clear: I didn't set out to create more work/life balance. That just happened as a result of my behavior. It took me a long time to connect all the dots and figure out which way the causal arrows pointed. 

Obviously, the disease was not causing success. But the disease led to specific behaviors, and the behaviors caused BOTH the work/life balance and the success in my business.

So, my RFS blogging and newsletter are a result of me working through the pieces of this puzzle. Over time, the RFS newsletter grew to have a mailing list almost as large as (and sometimes larger than) my technology newsletter. After a few years of synthesizing my thinking on all this, I started writing the book Relax Focus Succeed.

I thought that would be my first book, but it turned out to be my third. But that's a story for another day.

If there's a lesson here, it's that you should take time to seriously examine your life and work. They are directly related. And no matter how you might want to believe they're not connected, they absolutely are. Both are worth examining in detail. 

Do you have a philosophy of how your personal and professional lives are connected to each other and affect each other. If not, today's a good day to start. I humbly recommend my Relax Focus Succeed blog as a place to start.

All comments welcome.

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Episode 22

This Episode is part of the ongoing Lessons Learned series. For all the information, and an index of Lessons Learned episodes, go to the Lessons Learned Page. https://blog.smallbizthoughts.com/p/lessons-learned-blog-series.html

Leave comments and questions below. And join me next week, right here.

Subscribe to the blog so you don't miss a thing.

:-)

Gozynta Launches a Great New Podcast

Heather Johnson, CEO of Gozynta has launched a new podcast focused on MSPs and the challenges (and victories) that got them where they are today.

As the Spotify podcast site says, 

"Every MSP has a journey with challenges, lessons, and big wins. The MSP Growth Podcast is where MSP owners and leaders share their real stories, from the struggles they have faced to the strategies that helped them build something great."

I love stories about how we got here. And I've always believed that none of us could have planned the path that got us to where we are. This podcast is a great example of the lessons learned by successful MSPs along their paths.

In each episode, Heather Johnson dives into firsthand experiences from MSPs who have been in the trenches. What worked, what didn’t, and the lessons that fueled their success. 

Get a taste with their first episode: 

https://open.spotify.com/show/0BPDoPXYEPTIBSHmbYK3z6?si=e8ad115291c54123

(Soon to be available on other podcatchers as well.)

For a great introduction and discussion of this episode, see the Gozynta blog at https://www.gozynta.com/blog/mspgp001.

- - -

If YOU have a good story or two to contribute, you can volunteer to be interviewed by Heather. Sign up to be on an episode at https://calendly.com/mspgp/schedule

:-)

We found the Pot of Gold! Valuable Free Things for MSPs

We found the Pot of Gold at the end of the rainbow. Well, sorta.

Our last "MSP Freebies" give-away was very successful, so we're doing it again. This time, we have sixteen give-aways!

The IT community is filled with people who practice a "give-first" approach to working with MSPs and ITSPs. These free resources are designed to help folks like you with your business while also opening the door to meaningful connections with leaders in the community.

Over the years, I’ve seen how valuable these kinds of resources can be. For example, my "famous" 68-point checklist has been a go-to freebie for readers for years (Check it out at this link to our store). Inspired by that success and the generosity of others in the IT space, I reached out to my network with a simple question: Do you have something valuable to share with MSPs and ITSPs?

Once again, the response was overwhelming. And now we've put together a collection of these resources for you. (see below) 

The total value of these give-aways is more than $7,800! All available for the asking.

There are no hidden sales or agendas here—just genuine offers from people who care about supporting the IT community. To claim these freebies, all you need to do is engage: click the links or fill out a forms.

Is there a catch?

No. 

These resources are offered in the spirit of giving first, with no requirement to sit through a webinar or sales pitch. 

Of course, many of these contributors hope you’ll find value in their work and stay connected, but that’s entirely up to you. 

Check out the list below. I think you'll recognize many people who seem to give and give and give. I assure you that any new-to-you names on the list are just as generous with their time and talent.

Here's How It Works:

Explore the offers below. If one or more looks interesting, follow the instructions.

• Please use a legit email, if requested. These folks have put out an effort to be part of this program. And they are giving you something of real value.

• Be patient. It might take some effort to organize a coaching session or receive a postal mailing. And some are in other time zones and countries!

• Say thank you! If you find something particularly helpful, close the loop and say thank you! A quick note or shout-out on social media is also a great way to express your appreciation.

With all the big bucks in our industry these days, it's good to remember the people who focus on community first and giving first. Yes, they still need to sell *stuff* and make a living. But the give-first approach is a great way to make new friends and build meaningful relationships.

I'd love to hear your feedback about this program - and don't forget to check out MY give-away as well!.

Thank you. - Karl P.

---------------------

The Great Free Stuff

From: Karl W. Palachuk / Small Biz Thoughts

FREEBIE

IT Consultant's Newsletter Primer and Starter Kit by Karl W. Palachuk - $19.95 Value

OR use the coupon code to save $19.95 on any purchase from our store.

DETAILS 

Perhaps the most powerful marketing tool you will ever have is your monthly client-facing newsletter – But too many small businesses never have one! This handy guide shows you how to create an easy, useful, and low-maintenance newsletter that will serve you for years to come.

HOW TO CLAIM 

Use code FREENEWS25Q1 at https://store.smallbizthoughts.com/product/newsletter-starter-kit/

CLAIM BEFORE . . . 

Offer expires April 30, 2025

-- -- --

From: Dave Seibert / SMB TechFest

FREEBIE 

Full conference pass for Karl's community - $897.00 Value 

DETAILS 

SMB TechFest is created by a Microsoft MVP & Partner like you.. for you. A full conference pass for you featuring latest speakers, panels, meals, open bar, IT Mixer, Breakout sessions (Security, Sales, Marketing, Operations, Leadership). Attend Onsite or Virtual. Ranked a top 50 Channel Conference. 4 events per year. Attend and receive the full conference video recording afterwards to share with your team. Win cash, prizes, learn latest solutions, and network to learn from peers while gaining more business.

HOW TO CLAIM 

Register at https://www.smbTechFest.com/Go/Karl

-- -- --

From: Dave Sobel / The Business of Tech

FREEBIE 

Three Months Free of Patreon Access -- Access interview episodes early! - $75 Value 

DETAILS 

Here’s your chance to explore the full Business of Tech experience at no cost! For three months, you’ll enjoy:

• Early Access to Videos: Be the first to watch my latest insights and updates before anyone else.

• Exclusive Q&A Time: Get a special link to schedule one-on-one time with me to ask your questions and explore ideas.

• Full Website Access: Dive into the entire Business of Tech website, including every story and resource available."

HOW TO CLAIM 

Just follow the special link. https://www.patreon.com/mspradio/redeem/537B7

-- -- --

From: Rayanne Buchianico / ABC Solutions LLC

FREEBIE 

Strategic Action Plan for MSP Profitability - Value: $500 

DETAILS

Complete our Baseline Assessment to score your IT firm in 5 categories, including pricing, service, and finance. In return, you will receive a comprehensive Strategic Action Plan with 39 key strategies and the exact steps to take to build more profits and time into your MSP. The more honest you are in your self-assessment, the more valuable the Action Plan will be. 

HOW TO CLAIM 

Fill out the form: https://form.jotform.com/243485209578165

-- -- --

From: Loren Williams / PCs for People 

FREEBIE 

No-Charge Certified Data Deletion and e-waste disposal - $400.00 Value

DETAILS 

PCs for People will dispatch a truck and team to pickup de-comissioned computer equipment from you or your clients. We will securely delete all data and provide you with a certification of data deletion upon request. We do this to fuel our non-profit mission of bridging the digital divide.

*Geographical restrictions and minimum quantities apply.

HOW TO CLAIM 

To claim this give-away, head to https://www.pcsforpeople.org/schedule-a-pickup/

-- -- --

From: Erick Simpson / MSP Mastered®

FREEBIE 

The MSP Mastered® AI Lead Generation and Sales Toolkit for MSP Growth Playbook - $15.99 Value

DETAILS 

In The MSP Mastered® 20-Page AI Lead Generation and Sales Toolkit for MSP Growth Playbook, you will unlock the power of AI for your lead generation and sales strategy with invaluable insights, tools, prompts, and workflows to enhance your strategies.

HOW TO CLAIM 

Use Coupon Code : MSPMAICheatSheetFree! at https://bit.ly/MSPMAISalesPlaybook

-- -- --

From: Heather Johnson / Gozynta

FREEBIE

Get 1 Month Free in the Gozynta Growth Community! - $50 Value

DETAILS

Unlock access to the Gozynta Growth Community (formerly The Eureka Community)—a hub for MSPs packed with proven processes, customizable templates, and expert guidance to help you streamline operations and scale your business.

For a limited time, we’re giving you 1 FREE MONTH to explore everything our community has to offer!

Access hundreds of ready-to-use MSP processes and customizable templates

Watch videos to get tips and learn from other MSPs

• Get expert insights and strategies

• Collaborate with like-minded MSP leaders

HOW TO CLAIM

Use coupon code: GOZYNTAGROWTH at https://theeurekacommunity.com/

-- -- --

From: Scott Millar / IT Rockstars

FREEBIE

St. Patrick’s Day Special: Get Lucky with a Free MSP Listing! - $1,788 Value 

DETAILS

As part of Karl’s St. Patrick’s Giveaway, I’m offering a FREE listing on MSP Near Me—the high-ranking directory for IT support searches. Normally worth $1,788, this listing boosts your visibility, helping local businesses find you fast. Don’t leave your success to luck—claim your spot today and let MSP Near Me bring the pot of gold (aka leads) straight to your business!

HOW TO CLAIM 

Offer ends soon—grab it before it disappears like a leprechaun. https://mspnear.me/add-your-business/ 

-- -- --

From: Paul Green / MSP Marketing Edge

FREEBIE 

MP3 of a new book called MSP marketing: Start Here - instant access, no opt-in - $9.99 Value

DETAILS

MSP marketing expert Paul Green has written a new book. "MSP marketing: Start Here" helps you set up an easy marketing system to generate leads for your MSP.

It's on Amazon as a paperback and Kindle. EXCLUSIVE to Karl Palachuk, you can get the MP3... which isn't currently available ANYWHERE ELSE IN THE WORLD

It's only 44 mins long. And you can access it now without any need to opt in or even provide an email address.

HOW TO CLAIM 

This is a download link to grab the MP3. https://f001.backblazeb2.com/file/MSP-Marketing-Edge-resources/MSP+marketing+-+Start+Here.mp3

-- -- -- 

From: John Risko / MSP CFO and Accounting

FREEBIE 

Two Hours Free Consultation with an MSP CFO - $700 Value

DETAILS

MSP CFO and Accounting is offering two free hours of CFO consulting to help MSPs improve profitability through improved financial reporting and processes. Receive guidance in one or more of the following areas: creating accurate, monthly GAAP-compliant financial statements, integrating your PSA with QuickBooks Online, implementing a comprehensive reconciliation of billable users and licenses, and developing reports that inform confident decision making. 

HOW TO CLAIM 

To redeem, follow the link and fill out the form. Offer limited to first 10 respondents. https://mspcfoandaccounting.com/exclusive-offer-for-msps

-- -- --  

From: Ronnie Parisella / MSP Foundry

FREEBIE 

Strike Gold with ChatGPT! MSP Foundry’s $750+ Giveaway Awaits - $750 Value

DETAILS

Take a deep dive into your MSP business in the Forge and get tailored recommendations to strengthen your operations with AI and cutting-edge tools.

Book a 1-hour session with our industry experts and walk away with three or more powerful insights you can implement right away.

HOW TO CLAIM 

Visit www.mspfoundry.com to schedule your session today -- include the code word "Freebie" in the Notes.

Offer Expires: March 31, 2025. Visit https://mspfoundry.com/

-- -- --  

From: Bob Nitrio / Ranvest Associates & LogicTree IT Solutions, Inc.

FREEBIE 

FormsTrackR: Build Custom Automated Workflows for You and Your Clients and Generate New Consulting Revenue Streams - $620 Value

DETAILS

FormsTrackR is a powerful SaaS system that automates important data collection, delivery, reporting, analysis and management by exception. Use digital forms to make workflow automation a reality while easily building solutions for unlimited applications.

Get your free 90-day subscription of our Advanced plan, a free 1-hour setup and business consultation, a free e-book on workflow innovation, and additional free information – a $620 value for FREE! Use them to improve your business AND to add a new service to your solution stack that positions you as a business consultant for your clients.

HOW TO CLAIM 

Visit https://www.ranvest.com/MSPs

-- -- --  

From: Amy Babinchak / Third Tier

FREEBIE 

Defender + Intune Continuing Education - $100 Value

DETAILS

Each month Microsoft loads Defender and Intune with new features, moves and changes. Our continuing education program keeps you up to date and learning in the mode you prefer! Monthly newsletters with how-to articles. Plus a monthly online training! Read, watch or demo and never fall behind again.

HOW TO CLAIM 

Your first two months free with this code: CE2025 at https://www.thirdtier.net/product/defender-intune-continued-learning/

-- -- --  

From: James Kernan / Kernan Consulting

FREEBIE 

30-day membership - Mastermind Peer Groups - $1,391.00 Value

DETAILS

Join successful, like-minded MSSP/MSP peers from around the US to share, learn, motivate and grow your business.  

We meet monthly for 1 hour over zoom and have access to our training and document vaults. Also includes a FREE pass to our quarterly Q1 event in Dallas Texas March 27-28th!

HOW TO CLAIM 

Visit https://kernanconsulting.com/contact-us-page/

-- -- --  

From: Terry Hedden / Marketopia LLC

FREEBIE 

MSP Sales Training - Free 2 Week Unlimited Pass - $49 Value

DETAILS

Simply go to www.thegrowthmachine.com and register for the Teach You program and use the amazing marketing platform with over 100 campaigns plus our renowned sales training for MSPs absolutely free for 14 days. Cancel and owe nothing!

HOW TO CLAIM 

Visit https://thegrowthmachine.com/pricing-new

-- -- --  

From: Michael Siggins / ChannelPro

FREEBIE 

ChannelPro Ultimate Guide to Running a Profitable MSP - $500 Value

DETAILS

More valuable than a pot o'gold! ChannelPro is offering you our Ultimate Guide to Running a Profitable MSP - completely free. It includes strategies to upsell and cross-sell, boosting efficiency, improving cash flow and more. Our mission is to help you succeed. Enjoy this valuable resource!

HOW TO CLAIM 

Visit https://www.channelpronetwork.com/2025/02/26/ultimate-guide-to-running-a-profitable-msp/

-- -- --  

Thank You for checking out these offers. I hope you found many useful.

Once again, if you find this valuable, and we get good feedback, we'll continue to put together these great community offers.

As always, I would love your feedback. Is this kind of "Free Valuable Stuff" campaign worth receiving? Send me a note.

. . . and have a great Spring!

All my best . . .

• Karl W. Palachuk, Small Biz Thoughts

:-)

Profit Builder Blueprint for IT Service Providers - All New Class Starts March 18th

Profit Builder Blueprint for IT Service Providers

All New Class Starts March 18th

Exclusively inside IT Service Provider University

Profit Builder Blueprint for MSPs

• Five Tuesdays: March 18 - April 15
• Register Now
• All classes start a 9:00 AM Pacific
• Taught by Lori Hardtke, MSP, Coach, and Certified Profit First Professional 

Learn how to break through to a 6-figure salary, make confident financial business decisions, and build a profitable and valuable MSP business, simply looking at your bank account balances.

Transforming your IT business from a financial struggle into a thriving enterprise can be one of life’s most rewarding experiences. As an IT business owner, educator, and certified Profit First Professional, Lori has walked the path you’re on. 

Her mission is clear: to empower MSP owners like you to eliminate debt, prioritize profits, gain financial clarity, and banish money-related stress. Whether you’re just starting out or looking to scale, she's here to guide you towards the financial freedom and business success you deserve.

Is this YOU?

• Struggling paycheck to paycheck, constantly juggling bills and payroll

• Dipping into personal funds to keep your business afloat

• Paying yourself last (if at all) and dreaming of a respectable salary

• Baffled by financial statements and year-end profits that don’t match your bank balance

• Chasing the next big client or tool, hoping it’ll solve all your money woes

If you nodded to any of these, you’re not alone – and there’s a solution waiting for you!

Introducing: Profit Builder Blueprint for IT Service Providers

This isn’t just another business course. It’s your roadmap to:

• Eliminate debt and build a cash-rich business
• Pay yourself a six-figure salary you can count on
• Create a sustainable, profitable MSP that grows month after month
• Inspire your team with a vested interest in your company’s success
• Make smart business decisions by simply glancing at your bank accounts

Don’t let another day go by feeling financially stressed or undervalued. It’s time to build the MSP business you’ve always dreamed of – one that serves you, not the other way around.

Your journey to financial freedom starts here. Sign up now and transform your MSP’s future!

Top Take-aways:

• Break through to a 6-figure salary
• Avoid burnout and build a business that serves you
• Recognize and eliminate unnecessary expenses
• Learn how to pay off debt and say good-bye forever
• Fund your retirement account year after year

PLUS lots more.

Delivered by Lori Hardtke 

Led by Lori Hardtke, a seasoned MSP owner and Certified Profit First Professional, this course is your ticket to financial mastery. Lori runs her own successful, remote MSP serving clients across 7 states – all without full-time employees. Now, she’s ready to share her secrets with you.

Details at ITSPU.com.

Only $399

Register Now!

:-)

Trying to Get That First Employee (take one)

Trying to Get That First Employee (take one)

- Lessons Learned

As with any successful business, you get too busy to do it all yourself. And no matter how you slice it, the move from one person to two is a major opportunity for learning things. At this point in the business, almost any business owner will have been an employee of someone, somewhere. But the lessons around hiring your own employees seem completely unrelated to other companies.

My path to a first employee begins the same as almost everyone: I had too much work for me to do, so I hired someone to do the same thing I was doing. This is a mistake in almost every case, including mine. I had already read The E-myth Revisited by Michael Gerber, but I hadn't understood why this was a mistake. I was acting like a technician who needed another technician. 

This was a mistake because I should have hired an administrative assistant and NOT a technician. As my work expanded, I hadn't noticed that my overload came from things that were not technical. I didn't really need a technician: I needed to hand off invoicing, paperwork, some marketing chores, and lots of other work that was non-technical.

If I could go back and revisit one critical early decision, it would be to hire an administrative assistant at $10/hr (at the time) who could free up lots of my time so I could go do the work that was bringing in $100/hour. Here's what I did instead.

After I decided that I needed a tech, I promptly made a second mistake. I assumed that I needed to hire someone fulltime. Even then, I knew that I needed help to complete the work, but I also knew that I didn't have enough work to keep two people business full time. My justification was that I would sell like crazy to get the additional work.

Reality check: Even though I hired a great technician, he still needed to be introduced to my clients, my products and services, and my procedures. So now I was crazy busy doing all the work and not really handing off very much. Plus, of course, I was still doing all the non-technical work.

Eventually, Paul was trained up enough that he could work unsupervised most of the time. He has a great customer service attitude and clients loved him. I filled every available minute doing SALES in order to fulfill the promise (lie) I'd told myself that I could play catch-up and create enough work to pay him and myself fulltime salaries.

I was basically working fulltime to pay his wages and not making money for myself. That was unsustainable.

This was a frustrating period of extreme over-work. We did get new clients from my massive push. But let's be realistic. It takes a lot of labor sales to pay for a fulltime employee with benefits. 

In the end, I could not sustain it. I had to sit down with Paul and push the reset button. I was heartbroken. I had miscalculated many things simply because my "big business" background had done almost nothing to prepare me for the realities of small business employee management.

Remember, also, that this was well before the concepts of managed services and flat fee maintenance contracts. In the world of break/fix, you eat what you kill. And if you don't kill anything, you don't eat. That's bad enough when you're a one-person shop. It's worse when you've made promises to someone and he's relying on you to provide the money he needs to feed his family.

I might make this sound a bit too dramatic, but that's the way it felt inside my head. I had made promises to Paul. And he had assumed I would be able to pay the salary agreed on.

We ended up re-negotiating and he became a part-time employee. Of course, he really needed a fulltime job. Eventually, he left and took a great job that he enjoyed for more than twenty years. I had only part-time employees for almost five years after that. Hence the "Take One" in the title of this post. 

I had learned a hard lesson, both financially and emotionally. I was committed that we would grow, we would take on more people, and we would pay them real, fulltime wages they could rely on. But I'd been bit hard and I needed to regroup and have a plan.

Eventually, I did figure things out. Eight years after Paul left, we had fifteen people employed across two companies I owned, and payroll was the least of our worries.

For folks starting out, or looking to "finally" make the move from one employee to two, I would give three big pieces of advice:

1) Hire an admin or office manager first and NOT a technician. Really. Honestly. Just do it.

2) Your first technician employee (which is to say, your second employee) should be hired on a part-time, hourly basis. This gives you maximum flexibility on many variables.

3) Have a plan. And if you need help creating a plan, find a coach or a community or a peer group. 

As with all challenges in business, millions of people have done this before. Put you ego on the shelf and ask for help. It's amazing how many wonderful, helpful people you will find. You really can do it. But you don't have to do it alone.

All comments welcome.

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Episode 21

This Episode is part of the ongoing Lessons Learned series. For all the information, and an index of Lessons Learned episodes, go to the Lessons Learned Page. 

Leave comments and questions below. And join me next week, right here.

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Y2K, the Dot Com Bubble, and Opportunity Everywhere

Y2K, the Dot Com Bubble, and Opportunity Everywhere - Lessons Learned, Episode 20

I have to say, 1999 was a great year for my business. Prince says it all: "Life is just a party and parties weren't meant to last." (https://www.youtube.com/watch?v=rblt2EtFfC4) 2000 would burst the bubble. But 1999 was all about SALES. And for me, a lot of lessons about marketing and sales. 

The Y2K rollover brought a great deal of FUD - fear, uncertainty, and doubt - to businesses of all sizes. As I mentioned in the last episode, some businesses were very worried, knowing that they had done nothing to prepare for problems.

I believe no one really thought he world would end. But the more you knew about the state of computer code at the time, the more you worried that a lot of stuff would just not work right. Luckily, small businesses could do some upgrades to BIOS code, operating systems, and software to avoid the problems. Or - and here's the part I enjoyed the most - they could just buy a new computer with none of those problems built in.

I committed to creating program specifically designed to help small businesses during this time. These included:

• Seminars on Y2K preparation from a strictly business perspective
• Seminars on Y2K preparation for technology folks
• Y2K audits to see if companies had software and hardware that wouldn't make it
• and lots of marketing to make sure everyone knew that we were offering these services

And here are the most important things I learned from the year-long campaign.

First, there are buyers and non-buyers. Some people were 100% guaranteed to have problems on 1/1/00 if they did not upgrade to 1/1/2000. And yet, they refused to spend any money. 

I was busy enough that didn't bother to bug them about it. Some did come back to me later (after 1/1/2000). By then I had decided that they either needed to sign a contract or I would refer them to someone else for tech support. None of them signed a contract.

As Russell Brunson reminds us, a buyer is a buyer. And, conversely, a non-buyer is a non-buyer.

Second, holding seminars, charging for them, and promoting them, gives you instant credibility as an expert. I think I was charging between $99 and $199 per person for seminars on Y2K preparedness for small business.

Here's the best part. I did ONE live presentation to an audience of about 100 people. And I never held any of my focused seminars at all. No one signed up. Why is that good? Because LOTS of people called me and said, "I don't have time for your seminar. Can you come by, evaluate our systems, and make sure we have what we need?" Yes. We have a deal for that service.

In other words, I sold a lot of consulting services because I advertised seminars. Clearly, I got my advertising in front of the right people. But they didn't want to be personally educated. They wanted their business to survive - and I was the person expert enough to hold a seminar on the topic.

I later repeated this with cloud services, virtual servers, and other topics. No one who doesn't attend a seminar knows whether anyone else actually signed up for it. It's like Schrodinger's Seminar. Is it live? 

Third, I was sold on direct mail! I had always dabbled in direct mail (postal mail) as a marketing tool. With y2K I went all-in. I sent letters, postcards, and flyers. I sent reminders, newsletters, and stories with examples of how to check some things yourself.

Pretty much everything we did with direct mail worked. We had to mail the same folks again and again. But we always got a response. And I was committed to direct mail as a major lead source from then on.

Fourth, I personalized the lesson you've heard a hundred times: Don't mine for gold. All the money is in selling shovels to miners. When you are absolutely certain that people need something, and that you can provide it, drop your insecurities and sell that thing!

Over the years, I enjoyed the gold rushes to in-house computers, in-house servers, Small Business Server, cloud services, SaaS, and other technologies. As I mentioned in Episode 15, I completely regret my choice to skip the connectivity gold rush. But I sold my share of shovels.

The bottom line is that 1999 met the two "perfect" goals I had set for the year. 1) I made money in the present. And 2) I gained new clients and prospects for the future. I started the year wondering where to go from here, and I finished it with a solid business to build on.

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My favorite Y2K-prep story. One of my favorite clients ran a software company that was a spinoff of a former client's company. They did whatever it took to make sure they didn't have one second of downtime.

That included investing in a rooftop generator, a failover system for the electricity, and redundant internet connections. My friend Andrew literally spent New Years Eve 2000 up on the roof. He "failed over" to the generator before midnight, checked out all the operations, and "failed back" after we were safely into the new year.

Maybe not his favorite new years eve story, but it's a good one he can talk about forever.

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Were you in business back then? I'd love to hear about your Y2K prep.

All comments welcome.

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Episode 20

This Episode is part of the ongoing Lessons Learned series. For all the information, and an index of Lessons Learned episodes, go to the Lessons Learned Page. 

Leave comments and questions below. And join me next week, right here.

Subscribe to the blog so you don't miss a thing.

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Personal Health Crisis Takes Center Stage - Lessons Learned

Personal Health Crisis Takes Center Stage 

- Lessons Learned

Way back in 1999, my life took a sudden turn. I came down with a disease called rheumatoid arthritis. R.A. is an immune disease in which the body attacks itself. In particular, the immune system goes into overdrive and begins attacking specific joints and body parts.

The symptoms are pain in the the joints (primarily hands, feet, wrists, and knees), plus extreme exhaustion. That's the very short list of symptoms. The long list is extremely long, which leads to the disease being misdiagnosed quite frequently. I was lucky to be properly diagnosed within six months. (I recently wrote a long blog post about this on my Relax Focus Succeed blog. See https://relaxfocussucceed.com/2024/07/25-years-with-rheumatoid-arthritis-my-personal-report/.)

For my business, this disease hit at a critical time. I had a part-time employee. I was still working from a home office, but my employee never showed up there. We met at coffee shops and client offices. I had about a dozen clients under contract, but this was before "managed services" and flat fee services came along. 

A key thing to remember about the world we now call break/fix: You begin every money with zero dollars in the bank and zero dollars of predictable revenue. You can expect more than that, but any client can simply say, "Let's skip this month," and the projected money is just gone.

Note the date. This was 1999. This was, strangely enough, a truly great time to be in the IT business. Really big, old systems (like the company I left in 1995) had lots of old code written in old languages. That meant that the code was filled with two-digit year fields, often written in COBOL. There was legitimate concern that 1999 would rollover to 1900 and mess up a lot of stuff. Image a spreadsheet with this problem!

Small business was another story. There were a few things that could go very wrong, like security codes expiring when the date says 1900. But most problems were simply annoying: Calendars show the wrong dates for the month and day. Many, many problems could be fixed by simply resetting the date in the BIOS or operating system.

Ultimately, businesses that did not have custom-built software had almost nothing to worry about. They might have hardware and software that was not Y2K ready. But that made the fix easy: Buy new hardware and buy new software.

Hence, it was a good year to be in the IT business. We didn't create the situation, but we had an easy fix. Not cheap. Certainly not free. But easy.

I built many promotions around Y2K preparedness and Y2K testing and verifications. And, of course, we sold a lot of hardware and software. So it was a pretty busy year.

On the personal front, we had bought a new house. I was spending my evenings fixing up the new house so we could move in, and fixing up the old house to turn into rental property. My long days included working enough hours to pay for everything (including an employee), making sales, doing all the marketing, and then working until midnight. 

My daughter was in first grade and I was the primary caregiver. So I also took her to school, picked her up, and she hung out with me doing whatever "fixing" needed to be done each day.

Given all that, it didn't seem out of place to wake up one day and feel exhausted and painful all over. It felt a lot like someone who was working hard on all fronts and physically wearing out his body at the same time.

The exhaustion grew worse and worse. Eventually, it took me more than an hour to get out of bed in the morning. I later learned that one of the key screening questions for RA is, "How long does it take you to get out of bed in the morning?" Even today, twenty-five years later, I am asked that question every time I see my rheumatologist.

Along with the diagnosis was a severe prediction: If we don't get this under control, you will be too crippled to work in ten years. I paid attention to that warning, for sure. I do whatever my doctor says. I take the medications they tell me to. I move the way they tell me. I eat the way they tell me. I do what I'm told!

It took about two years to get the R.A. under control. But I have been operating at a lower, slower level of activity since then. I simply cannot work an eight-hour day. I certainly can't work ten or twelve hours in a day. And I can't work every day. 

I have to recharge my batteries and I have to avoid habits that will build cumulative exhaustion.

My challenge was how to grow my business, manage my home life, and continue to pay all the bills while working a lot fewer hours  than anyone else. Several key lessons came out of this.

First, I learned the "absolute truth" that no one is paying attention to me. No one is paying attention to you, either. If you take off at 3PM, but still manage to answer voicemails and emails during business hours, no one will know that you're not sitting at a desk, or crawling under a desk. Clients spend their time thinking about themselves, not you.

Second, I discovered the value of real self-care. This includes exercise, going to the chiropractor, getting massages, meditating, and spending time recharging my batteries. Ultimately, I believe it is this self-care that gave me the energy and stamina I needed to get few the next five years.

When I finally got the disease "under control," my business had grown to one part-time and one full-time employee, a couple dozen clients under contract, and a solid, predictable set of revenue streams. I didn't have to do all the work, but I did a lot of it.

I decided to write a book about my philosophy for work/life balance and achieving spectacular results without working yourself to death. And, thus, the Relax Focus Succeed book, blog, and web site came into existence. RFS won a book award that is one of the very few awards I keep around where I can find it and look at it from time to time.

Ultimately, I hope the RFS philosophy takes on a life of its own. It is probably the most important thing I've ever produced. You can learn more at https://www.relaxfocussucceed.com.

All comments welcome.

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Episode 19

This Episode is part of the ongoing Lessons Learned series. For all the information, and an index of Lessons Learned episodes, go to the Lessons Learned Page. 

Leave comments and questions below. And join me next week, right here.

Subscribe to the blog so you don't miss a thing.

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The ASCII Group Expands Member Advisory Committee with Four New Appointments

The latest missive from my friends at ASCII . . .

The ASCII Group Expands Member Advisory Committee with Four New Appointments

Washington, D.C. – February 19, 2025 – The ASCII Group, North America’s leading community for independent Managed Service Providers (MSPs), is pleased to announce the appointment of four distinguished MSP leaders to its Member Advisory Committee: Kathy Durfee of TechHouse; Michael Goldstein of LAN Infotech, LLC; Felicia King of Quality Plus Consulting; and Ken Wong of DragonTek International. These accomplished professionals bring a wealth of experience and insight to the committee, further strengthening ASCII’s commitment to supporting MSPs in an ever-evolving technology landscape.

The Member Advisory Committee is comprised of select IT professionals from diverse technology sectors who collaborate with ASCII leadership to provide strategic input on membership initiatives, industry challenges, and emerging opportunities. By expanding the committee with these new members, ASCII is reinforcing its mission to equip MSPs with the tools and knowledge needed to navigate the next phase of industry transformation.

“Our Advisory Committee plays a crucial role in shaping the direction of ASCII’s programs and initiatives,” said Alan Weinberger, Chairman and CEO of The ASCII Group. “The addition of Kathy, Michael, Felicia, and Ken enhances our ability to provide meaningful guidance to our growing community as the industry continues to evolve.”

Representing 12 member businesses across North America, the Member Advisory Committee meets regularly with ASCII leadership to discuss new alliances, peer networking opportunities, and innovative ways to bring value to the membership. 

In addition to the newly appointed members, the ASCII Member Advisory Committee includes Joe Balsarotti, Tom Fox, Sean Jennings, Chad Kempt, Stanley Louissaint, Stephen Monk, Kim Nielsen, and David Stinner. Established in 2001, the committee remains a vital part of ASCII’s dedication to fostering collaboration and driving innovation within the MSP community.

For more information about The ASCII Group and its initiatives, visit www.ascii.com.

About The ASCII Group, Inc.

Founded in 1984, The ASCII Group is the original IT community of the channel, uniting Managed Service Providers (MSPs) across North America. As a vendor-neutral organization, ASCII provides unbiased resources and a collaborative environment to support business growth. Members span the U.S. and Canada, ranging from SMB-focused MSPs to international solution providers. ASCII offers leveraged purchasing programs, education, marketing support, peer networking, and more, complemented by a vibrant ecosystem of technology vendors. Learn more at www.ascii.com.

-30-

:-)

Jimmy the Phone Guy - the Saga Begins

Jimmy the Phone Guy - the Saga Begins - Lessons Learned

If you read Cloud Services in a Month, you might remember Jimmy the Phone Guy. The name is real. I didn't change it because I don't care if he knows I'm talking about him. 

I met Jimmy when he was a contractor for one of my favorite early clients. I was in charge of Internet operations and worked closely with the guy in charge of the the Novell network and the entire internal wiring, including fibre channel.

Jimmy literally pulled the wires. And he was good. Some phone techs don't seem to actually care. They put connections in stupid places, don't label anything, and some don't even test their wiring when they're done. Jimmy did a beautiful job.

The office I worked in was actually about fifty employees spread across three small-ish buildings. So "wiring" included buried pipes between buildings so that the network could be shared and the wires were secured. It was a sweet setup for 1996.

At that time, I "specialized" in getting people connected to this new thing called the Internet. And that quickly morphed into the real opportunity: Bringing networks into small businesses. Jimmy and I got along and he saw that I had some skills with networking.

One day, he invited me to be a subcontractor on a two-day job in the Bay Area. He had the then-rare skill of setting up network and phone wiring together, and making it perfect. He had sold a client on the concept of not just phones, but also a network. He needed me to sell a server, several desktops, and all the stuff it took to make them talk to each other, and the Internet.

On the second day of that job, Jimmy told me flat out, "Someday, I'm going to take all your clients." Wow, I thought. So I asked him to explain.

His vision was that, just like the current job, he would start with a phone referral. Then he would add the network. And all he had to do was to learn how to make Windows computers talk to each other and he'd be set. My only response was, "Bring it on."

As Jimmy explained it, he was already in every office. He was already in their billing system. He was already a contractor for them. And his work was rock solid, so most people never needed him except if they needed to change the phone tree of run lines for a new phone extension. He had a good reputation.

"All" he needed to learn was Windows networking, TCP/IP, NetBEUI, IPX/SPX, plus operating systems such as Windows server, Windows desktop, Novell services. Oh, and printing protocols and troubleshooting all of the above.  

Here's the lesson I learned, which I still find truth in today. When you do your job well, it looks easy to other people. Eventually, this evolved into what I can The Paradox of Simplicity. 

The Paradox of Simplicity simply states: Everyone thinks they can do everyone else's job. Not great. Not as well. But enough to get by. For example, with Photoshop, I can do some graphic (see this blog). I wouldn't try to sell any graphic work I've done. But it's good enough. I certainly wouldn't create my own book cover.

We download legal agreements we don't understand rather than hire a lawyer. We take pictures with our cell phones rather than hire a photographer. We buy a do-it-yourself kit rather than hire a professional for just about everything. 

But thinking you can do something good enough won't cut it when your business is on the line. 

Jimmy also opened my eyes to something I had done a little of and would do a lot more of: sub-contracting with people who sold other services to small businesses. Sometimes, I just networked with people who could be a source of lead referrals. Sometimes, I hired other IT consultants to help with large jobs. Sometimes, I found specialists who allowed me to expand my offering without learning a new skill (e.g., printer repair).

Working with others in the field, and in adjacent fields, is a great way to keep your fingers on the pulse of small business technology. It help you to focus on the nature of the changing business environment you work in. See yesterday's blog post (You won't be taken out by a competitor; You'll be taken out by a new business model).

Jimmy and I did a few jobs together. But that client, Debbie, signed a contract with me to provide support for her new server, desktops, laptops, and the entire network. She was one of our longest-standing clients until I sold the business. But I still manage a few things for her. In fact, I just sent her an invoice to renew her domain registration. So she's still a client in a small way.

There's more to the Jimmy story. But I'll tell you that story another day.

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This Episode is part of the ongoing Lessons Learned series. For all the information, and an index of Lessons Learned episodes, go to the Lessons Learned Page. 

Leave comments and questions below. And join me next week, right here.

Subscribe to the blog so you don't miss a thing.

:-)