Nothing
Happens
by Itself
Copyright © 2023 Karl W. Palachuk
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Greetings!
Happy May Day!
I've always considered May Day to be an odd holiday. I've always "heard" about it. But I've never celebrated it. I've never met anyone who has. And in all my travels around the first of May, I've never stumbled upon a celebration.
I have never heard of anyone taking off from school or work for May Day. If your experience is different, I'd like to hear about it.
I searched my three royalty-free databases for May Day and May Pole with no results. For record, May Pole Dancing looks pretty much the same as any other pole dancing.
But Cinco de Mayo, we celebrate!
It's not Mexican Independence Day, as many believe. It just celebrates some random victory that the Mexicans won when they were expected to lose. But no one cares.
May the 5th - the cinco of de Mayo - is Friday. Enjoy responsibly.
Anyway, Happy May Day.
Also: Please don't email me with a history of May Day. I have the Internet.
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NSITSP All-Member Meeting: May 10th!
The quarterly NSITSP meeting is open to everyone. Please register now and join us May 10th on Zoom. o Andy. We'll be posting that up for members as soon as we can.
The agenda includes committee reports related to growing the organization, following legislation, marketing, fundraising, events, and more.
We'll also talk about the recent webinars and upcoming events we have planned.
Join us!
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Is Private Equity Good or Bad?
The obvious answer is "neither," of course. So let's be more specific: Does private equity investment in our industry do more good than bad?
In my opinion, private equity is showing its worst side in our industry and doing much more harm then good. But there's hope! Read on.
Note: Almost no one in our industry and channel is free to say what they want about the companies they do business with. The "media" outlets will never openly tell the darker side of what they know about vendors because they don't want to lose advertising. Most of the opinion leaders and popular web sites are exactly the same. And so are all of the companies that make money putting on shows.
I recently had a conversation with someone in the industry who is being threatened by a vendor. They are being told to not discuss problems regarding the vendor because they are subject to a "non disparagement" clause in their contract. So, they don't complain in online forums or discuss openly for fear of being sued.
I know that ConnectWise has had such a clause for a long time. And I've heard that Kaseya has one for the companies they've purchased in the last several years. I'm not sure how these square with the First Amendment of the U.S. Constitution, but I do know that economic free speech is not as protected as political free speech.
SO: Members are left grumbling in meetings when they are pretty sure it's not being recorded, or mumbling on anonymous forums such as Reddit.
Our industry is not alone. Private Equity is generally bad for business, certainly bad for people, and sometimes very good for investors. There was a great line in Friday's New York Times: "Companies bought by private equity firms are far more likely to go bankrupt than companies that aren’t. Over the last decade, private equity firms were responsible for nearly 600,000 job losses in the retail sector alone." * (Emphasis is mine)
The idea of private equity is very straight forward: You get a bunch of investors together; you buy a company; you reorganize and improve that company, often with economies of scale not otherwise available; and you make a huge profit. Rinse and repeat with more and more companies. Sounds great. It rarely works out that way.
When private equity first sets its eyes on an industry, there are many legitimate good deals. They buy a company, fire a bunch of people, make some changes, and eventually improve some things. But then a few good deals evolve into an infestation of private equity. That's where the MSP or SMB IT channel is now.
During the infestation period we're in now, "everyone" thinks they're going to get rich buying vendors, running them into the ground, and sucking all the profit they can out of the industry. Similarly, different groups of investors are doing the same thing with MSPs. They are buying up individual companies in deals that are very bad for the sellers, gutting the companies, and taking all the profit elsewhere.
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What's NOT included in this equation?
- Humans: You or your employees
- Clients (end users)
- Relationships
- Ethics, beliefs, and culture
- Customer service, or even decent quality service
- Product improvements
If you haven't seen the episode of The Sopranos where Tony takes over his friend's sporting goods store, YouTube it. Basically, Tony forces his friend Dave to do a lot of things he knows he shouldn't, eventually forcing him into bankruptcy. Dave doesn't understand and asks why Tony did all this.
Tony expounds: "It's my nature. The frog and scorpion."
In the end, private equity in our industry is a LOT like Tony Soprano cleaning out his friend's store, destroying everything about it, and taking as much money as he can before he walks away. That's where we are today.
Kaseya is the current worst example. But they're not the first, the worst, or the last. But they've certainly shown our industry how fast you can take businesses built on great products and great service and turn them into the most hated, despised companies in the channel.
Private equity has taken some great companies and some great people and turned them into money-hungry cogs in a system that does not care one tiny bit about you, your clients, your employees, or the industry as a whole.
I'm not sure how this ends. With a little inflation and some higher interest rates, it may not be possible to keep paying the investors what they require for their annual cathedraticum. I fear that bankruptcies, consolidations, and even anti-trust lawsuits are just ahead for our industry.
A VERY common tactic to look out for: A private equity investment company will split a company into two companies, with all the debt in one of those companies. Then, one company goes bankrupt and the PE folks keep the profitable pieces. The leftovers and the stinking pile of waste? That's someone else's problem. This will happen. But you probably won't hear much about it in any channel-centric media. So keep an eye on channel-adjacent news outlets.
It will be hard for you to see the real news, because you won't see it in any of the magazines or tradeshow companies. You certainly won't hear about it on stage. No one wants to lose sponsors or advertising.
The Good News is ...
If you're a smaller company, or you don't need to sell, you can focus on your clients, your employees, your culture, and excellent customer service. You will thrive in this environment because you can focus 100% on being the opposite of the companies who have been consumed into the Borg-like collective of private equity.
PE-backed companies cannot care about you.
PE-backed companies cannot care about your clients.
PE-backed companies cannot care about your culture.
PE-backed companies cannot care about good service.
PE-backed companies cannot care about your employees.
But YOU can embrace all of those things and thrive!
I'm not saying it will be easy or quick. The road ahead is going to be difficult, no matter what you do. Our industry is going to go through some tough stuff. But YOU can thrive. You can survive. You can come out the other end profitable and doing great.
If I can help, let me know.
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The SMB Online Conference only happens every three years.
Don't Miss It!
We now have over 150 registered. This conference is really a two-day conversation. Always new, fresh, and educational.
This is a GREAT deal for only $399
For two days of education - and presentations you won't find anywhere else.
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It's Been a Great First-Third!
Four months down. 2023 is turning out to be a pretty good year for most MSPs I talk to. I think folks are settling down and less worried about a bad recession. Now they're thinking it might be a mild depression.
Whatever happens, just remember that YOU are an economy of one. You need to stay focused on your clients, you employees, and you next sale. You should take care of your business and let the economy take care of itself!
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I messed up last week. Sorry.
Normally, this newsletter it written on Friday and scheduled for Monday. Sometimes, I bounce in on the weekend to post the picture of the week. Well, last Sunday, I just published "now" instead of the regular time. So you got a very out-of-band email.
That's the first time I've ever done that in more than fifteen years.
Thank you for your patience. As they say, God's not done with me yet.
I'll be in Las Vegas this week for the big Channel Partners show. Look for me in the Channel Wise coaching area at the Venetian. Say hi and ask me to buy you a beer. ;-)
Have a great week!
:-)
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You only missed one class. Sign up, catch up, and we'll see you tomorrow!
Position Your IT Firm for Growth or Sale
Taught By: Rayanne Buchianico, Author and Coach
- Five Tuesdays - April 25 - May 23
“Rayanne’s course on getting a company ready for growth or sale was amazing.”
– David Streit, Stephill Associates
As your business matures, you want to take control of profits and your financial house. You invested the time to set up your chart of accounts, align income with COGS for easy measuring, and organize your reports and service desk. You have the information you need; this course teaches you how to use it.
This class provides unique content from a unique teacher! Rayanne is a managed service provider from Tampa, FL. She is also an accountant and an Intuit Certified ProAdvisor. In addition to her MSP business, Rayanne helps I.T. consultants to take control of their finances and understand their own business at a deeper level.
Topics for this class include:
- Create KPIs specific to your company
- Benchmark against your peers
- Detailed cash flow management and measure debt against income
- Measure service-level profits and improve profitability
- Identify red flags in your business, make changes before they become problems
- Prepare your company for growth, sale or merger
- Use margins to price your services for profit
- Income Tax Planning and Projections
- Action plans for success
... And More!
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Here are the specifics of what you'll learn, week by week:
Week One
- Plan
- Organize
- Documentation
Week Two
- Valuation Methods
- Working Capital
- Tracking EBITDA
Week Three
- Build KPIs
- Develop Trends
- Labor Costs
Week Four
- Cash Flow Forecasting
- Debt Reduction
- Controlling Costs
Week Five
- Workshop – Bring is together
Delivered by Rayanne Buchianico, Accounting Professional and QuickBooks Advisor. Rayanne has been an MSP - managed service provider - for many years and advises MSPs on how to get the most out of their QuickBooks and PSA integrations.
Includes five weeks of webinar classes with related handouts, assignments, and "office hours" with the instructor.
This course is intended for business owners and managers. It is particularly useful for the Owner or Operations Manager.
ITSP University Certification:
Meets Certification Requirements for:
This class will be recorded. Each unit is generally posted within 24 hours of the live class. These recorded units will become the On-Demand class and you’ll have lifetime access to it.
Note: * Members of the Small Biz Thoughts Technology Community attend at no additional charge. See details in the Community
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All the Resources That Are Fit to Print |
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Recent Blog Posts, Podcasts, and Videos |
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Small Biz Thoughts Blog:
SMB Community Podcast - New episodes drop every Thursday
National Society of IT Service Providers News Blog
Relax Focus Succeed:
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Selected Recent Videos and Webinars:
Our YouTube IT Consulting channel now has more than 678,000 views!
Subscribe today and don't miss a thing!
A quick guide to my Playlists:
- Total: Over 900 videos on the Small Biz Thoughts channel
- 360+ SOP videos
- 275+ Relax Focus Success videos
Plus . . .
- Training, Courses, Seminars on Managed Services
- Product Reviews
- and more
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Community News
SmallBizThoughts.org
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Join us every Thursday
Our weekly meetings are fun and educational!
Welcome, New Members!
In addition to all the free class, free books, and endless checklists, we have live meetings every week! The link is always in your dashboard.
Also: You should be registered for the SMB Online Conference. Contact us if you need more info.
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Our May Roundtable will be May 11th - not first Thursday!
Our guest will be Kelly Holmstrom. Kelly is a strategic marketing consultant who works with some of the largest technology companies in the world.
Her core competency is around CX - Customer Experience. She is also a leader in the concept of "Decisioning" - a practice that involves big data, analytics, and predictive analytics. We'll talk to her about how this big-data model is changing the world our clients live in.
This will be an amazing and enlightening look into the world of big data and next-generation customer service.
The link to join is always in your Community Dashboard. If you need assistance, email Kara or me.
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ALSO: Don't forget to sign up for your FREE classes at www.ITSPU.com. Note that these sites are different, so you need a unique logon for each. Your "transcript" of classes is tied to your login email. That way, no matter what happens in the future, you can access all the classes you've taken.
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Here's the April Community News video: |
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Tracy Hardin, Chair of the NSITSP Finance Committee, told me that I should keep an eye out for this slot machine in Vegas. Invaders Attack from the Planet Moolah! Well, I found it at New York New York. It was loud and filled with graphics, humor, and flashing light. Not bad for $3/click. I loved it. I also lost my allotted allowance almost immediately.
But I'll look for it again.
:-)
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What's Here?
This calendar lists two kinds of things: LIVE in-person events from any organization that focuses on the SMB consulting community; and MY events, whether live, webinar, etc.
If you have live events on your calendar that may be useful to others in the SMB Community, please let us know. We'd be happy to list them.
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May
Channel Partners
May 1-4
Las Vegas, NV
Join Me Live in Vegas!
Free Coaching
ALSO: Do not miss the FREE coaching sessions being sponsored by ChannelWise.
This event is inside the MSP Summit. Many coaches, including Jeff Ponts, Amy Babinchak, Erick Simpson, and more!
May 3rd
Las Vegas
Join Me Live in Vegas!
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IT Nation Evolve
May 1-5
Dallas, TX 75207
Nerdio Training Camp
May 2-3
Houston, TX
SMB TechFest Q2
May 4-5
Anaheim, CA
N-Able Empower
May 9-12
Prague, Czech Republic
ChannelPro Summit
May 9-10
Chicago (Midwest)
Service Desk and IT Show
May 10-11
London, UK
Ingram Micro Cloud Summit
May 15-17
Las Vegas, NV
7 Figure MSP Live
May 16-18
Nashville, TN
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2023 SMB Online Conference!
May 17-18
Online - Two Days - 13 Hours of Education
Join Me Live Online!
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Women of the Channel West 2023
May 16-17
Palm Springs , CA
IoTSSA Cybersecurity Expo
May 18
Columbus, OH
Channel Sec 2023
May 18
London, UK
MSP Geekcon
May 21
Orlando, FL
IT Nation Manchester
May 22-26
Manchester, UK
VeeamOn
May 22-25
Miami, FL
Dell Technologies World
May 22-25
Las Vegas, NV
ASCII Edge 2023
May 24 & 25
Newark, NJ
Dublin Tech Summit
May 31 - June 1
Dublin, Ireland
:-)
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June
Cisco Live!
June 4-8, 2023
Las Vegas, NV
IT Nation Secure
June 5-7, 2023
Gaylord Palms Resort and Convention Center
Orlando, FL
Nerdio Training Camp
Jun 7-8
Las Vegas, NV
ChannelPro Summit
June 7-8
San Jose, CA (West Coast)
Join Me Live!
MSPDay
June 9
Riccione, Italy
London Tech Week
June 12-16
London, UK
Pax8 Beyond
June 11-13
Denver, CO
IT Nation Sales and Service Leaders
June 12-16, 2023
Denver, CO
Nerdio Training Camp
June 20-21
New York, NY
Infosecurity Europe
June 20-22, 2023
London, England
ASCII Edge 2023
June 21 & 22
Tampa, FL
James Kernan's Millionaire Mastermind Quarterly
June 29-30
Denver, CO
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July
IDM (Identity Management) Dach
July 6
Frankfurt, Germany
XChange Security 2023
July 10-12
Dallas , TX
ASCII Edge 2023
July 12 & 13
Columbus, OH
CyberSecurity Expo
July 13, 2023
Manchester, UK
Nerdio Training Camp
July 19
Calgary, Cananada
SMB TechFest Q3
July 27
Anaheim, CA
MSPRescue
July 27th
Princeton
:-)
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August
Nerdio Training Camp
August 1
Toronto, Canada
ChannelPro Summit
Aug. 9-10
Newark, NJ (Northeast)
IT Nation Evolve Business Leaders
August 7-11, 2023
Denver, Colorado
XChange - Nashville
August 20-22
Nashville, TN
Join me Live!
Inclusive Leadership Network Workshop 2023
August 23
Nashville, TN
ASCII Edge 2023
August 30 & 31
Toronto, Canada
:-)
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September
ChannelPro Summit
Sept. 6-7
Boston (New England)
Nerdio Training Camp
Sept 12
Atlanta, GA
Midsize Enterprise Summit Fall 2023
September 17-19
Houston, TX
ASCII Edge 2023
September 20 & 21
Chicago, IL
CanIT Con
Sept 24-26
Banff, Alberta, Canada
James Kernan's Millionaire Mastermind Quarterly
Sept 28-29
Omaha, NE
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October
dattoCon 2023
Oct. 2-4, 2023
Miami, FL
Nerdio Training Camp
Oct 3
San Antonio, TX
Best of Breed Conference 2023
October 9-10
Atlanta, GA
ChannelPro Summit
Oct. 10-11
Atlanta (Southeast)
NexGen 2023
October 15-18
Houston , TX
Acronis #Cyberfit Summit 2023
Oct. 16-18
Miami, FL
Nerdio Training Camp
Oct 17
Dallas, TX
NexGen Security Workshop 2023
October 18
Orlando, FL
SMB TechFest Q4
October 19
Anaheim, CA
ASCII Edge 2023
October 18 & 19
Washington, D.C.
Beerfest with Karl
- October 2023
- Perth, Australia
More Info: Details to be announced !!!
Join me Live in Perth!
SMB IT Professionals National Conference
October 27-28
Melbourne, Australia
Join me Live!!
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November
ChannelPro CyberSecurity Strategies
Nov 1-2
Los Angeles
IT Nation Evolve Business Leaders
November 6-8, 2023
Orlando, FL
Nerdio Training Camp
Nov 14-15
Austin, TX
IT Nation Sales and Service Leaders
November 28 - December 1, 2023
Nashville, TN
:-)
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December
Growcon
Dec 3-6
Clearwater, FL
Women of the Channel Leadership Summit East 2023
December 4-5
New York, NY
ASCII Navigate in Hawaii !!!
Dec. 7th
Waikiki, HI
Join Me Live in Hawaii!
James Kernan's Millionaire Mastermind Quarterly
Dec 7-8
Phoenix, AZ
Nerdio Training Camp
Dec 12-13
Los Angeles, CA
:-)
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January 2024
Send us your updates
February 2024
Send us your updates
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March
Midsize Enterprise Summit IT Security 2024
March 18-19, 2024
Indianapolis, IN
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Note: If you know of any in-person event for SMB Consultants, please send info to karlp@greatlittlebook.com. |
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Small Biz Thoughts is a subsidiary of Great Little Book Publishing Co., Inc. |
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