The MSP Bottleneck: How Owners Sabotage Their Own Growth

After years in the MSP space, we’ve seen the same painful pattern—MSP owners unknowingly sabotaging their own growth. One of the top questions we hear is, “How did you scale to a seven-figure MSP?” The answer? It wasn’t just about better tech or more clients—it was about getting out of our own way!

When we transitioned from running an MSP to helping other MSPs through Cloud Services for MSPs, we recognized that most roadblocks weren’t about competition, the market, or staff—they were self-inflicted. If you’re feeling stuck, chances are, you’re the bottleneck in your own business!

It’s harsh, but don’t worry: let’s break down how you might be holding your MSP back and, more importantly, how to fix it.

The Technician Mindset Trap

One of the biggest barriers to scaling an MSP is shifting from a technician mindset to a business owner mindset. Most MSP owners start as highly skilled IT professionals, but if you stay in the weeds constantly fixing things yourself, your business can’t grow. Why? Because you’re working in your business, not on it!

Letting go is hard. You built your MSP on your technical expertise, and stepping back feels like losing control. What if someone else makes a mistake? What if customers aren’t happy with their work? The truth is, if you don’t step away from the trenches, you’ll never have time to scale…

If you’re still handling technical tasks that someone else could do, ask yourself what’s stopping you from delegating. If you’re the only one who can do certain tasks, your business can only grow as much as your time allows!

Underpricing Services and Attracting the Wrong Clients

Too many MSPs set their prices too low, thinking it’ll help them win more clients. But low pricing does more harm than good—it attracts high-maintenance, low-value clients who drain your resources. Worse, it undervalues your expertise!

The fear of losing clients or pricing yourself out of the market is real, but here’s the reality: the best clients pay for value, not the cheapest option. Cheap MSP services attract businesses that don’t appreciate IT and will jump ship the moment they find someone cheaper.

If you’re unsure whether your pricing reflects the value you provide, consider how your business would change if you charged what you’re truly worth. Would you be able to reinvest in better tools or scale your services more effectively?

Avoiding Specialization and Staying Stuck

Many MSPs avoid niching down because it feels risky. What if you specialize in cloud, security, or compliance, and the market shifts? What if clients don’t see the value? Here’s the truth—specialization makes you more valuable, not less.

A study by CompTIA found that MSPs leveraging cloud services grow 25% faster than those sticking to traditional on-prem solutions.

If you don’t have a specialization, consider which area could help you grow faster. If you do have a niche, reflect on how much of your business actually comes from it and whether you’re fully leveraging its potential!

No Sales Process Means No Growth

Too many MSPs rely solely on referrals and word-of-mouth for new business. While referrals are great, they aren’t predictable. Without a structured sales process, you’re stuck in a feast-or-famine cycle—some months are great, others are dry.

A predictable sales system ensures you’re consistently generating leads and maintaining steady revenue!  Without it, you’re left hoping new clients will just show up…

Hope is not a strategy: if you don’t have a repeatable sales process in place, your business is vulnerable to unpredictable revenue swings.

Leveraging Strategic Partnerships

Many MSPs live in a bubble, thinking they have to do everything alone… but no business thrives in isolation! Strategic partnerships—whether with a cloud provider, security vendor, or co-managed IT partner—can accelerate your growth and expand your service offerings.

The fear of losing control or bad past experiences with vendors can make MSPs hesitant, but the right partnerships open doors. We saw this firsthand when we transitioned our MSP to focus on cloud—we didn’t do it alone, and neither should you!

If you’ve been hesitant to explore partnerships, consider who you could collaborate with to expand your service offerings. The right partnership could be the missing piece to scaling your business faster.

Break the Bottleneck and Start Scaling Today

If any of these bottlenecks sound familiar, don’t worry: every successful MSP has had to break through these barriers. The key is recognizing where you’re holding your business back and taking action to fix it!

My challenge for you this week is to identify one area where you are the bottleneck in your MSP and take a specific action to remove yourself from that roadblock.

Today, I’ll leave you with this quote from John C. Maxwell: “A leader is one who knows the way, goes the way, and shows the way.” Have a great week, and good luck!