Novatech President Discusses How to Build a Successful MSP

Summary

In this insightful conversation, Andy interviews Dave Mormon, President of Nova Tech, a business technology company with a 30-year history. Dave shares the company's strategic shift from a traditional copier business to a managed service provider, emphasizing the importance of adapting to the evolving tech landscape. He discusses the acquisition of his MSP, the challenges of scaling the business, and the critical role of cybersecurity in their service offerings. The discussion highlights the company's commitment to providing comprehensive tech solutions and the value of building enduring customer relationships.

Takeaways

• 😀 Nova Tech is a roughly 30-year-old business technology company that was originally a copier company and has since evolved to offer a range of technology products and services.
• 👋 Dave Mormon, the President of Nova Tech, was the founder of a Managed IT company that was acquired by Nova Tech, leading to a significant expansion of their managed services.
• 🛠️ Nova Tech provides a comprehensive suite of services including Managed IT services, cybersecurity, cloud solutions, and unified communications as a service.
• 📈 The company has experienced significant growth, tripling its Managed IT business in five years, partly through strategic acquisitions like Carolina Business Systems.
• 🔑 The strategy for scaling the Managed IT services involved training Nova Tech's sales representatives to become business technology advisors and offering them incentives to sell managed services.
• 👔 The company has a diverse sales force with some older reps who may not be as inclined to sell managed IT services, but younger reps are encouraged to learn and sell these services to build long-term relationships with customers.
• 🛡️ Cybersecurity is a key focus for Nova Tech, with a range of security technologies offered to customers, including managed detection and response, next-generation firewalls, and user awareness training.
• 🤖 The impact of AI on cybersecurity is significant, with machines now capable of identifying vulnerabilities, launching attacks, and adapting strategies in real-time, making the threat landscape more dynamic and challenging.
• 🏢 Nova Tech's approach to customer service includes quarterly business reviews with a 110-point checklist to ensure best practices are being followed and to identify areas for improvement.
• 💼 Dave Mormon has not faced any lawsuits in his 32 years of business, attributing this to Nova Tech's strong security posture and proactive approach to customer education and support.
• 🚀 For traditional copier dealers looking to transition into offering managed IT services, Dave suggests acquiring an existing MSP or hiring experienced professionals in the field to accelerate the process and ensure success.

Q & A

What is the history of Nova Tech and its transition to a technology-focused company?

Nova Tech is a roughly 30-year-old business technology company that was originally known as Nova Copy. They changed their name to Nova Tech about six years ago after acquiring a managed service provider (MSP) in Atlanta, Georgia. The company is now focused on providing a range of technology products, software services, and solutions to customers in the Southeast.

What was the initial state of the Managed IT company when Dave Mormon joined Nova Tech?

When Dave Mormon joined Nova Tech, the Managed IT company had about 25 customers and was primarily operating in Nashville, Tennessee. It was not performing well, and the company was looking for ways to improve and grow the managed services program.

How has Nova Tech expanded its Managed IT services since the acquisition?

Nova Tech has expanded its Managed IT services by taking over the existing customer base, implementing a comprehensive strategy that includes training its sales representatives, and offering a wide range of technology solutions such as cybersecurity, cloud solutions, and unified communications as a service.

What is the role of Dave Mormon at Nova Tech?

Dave Mormon serves as the President of Nova Tech. He was brought in to lead the company into the future and help transform the business to provide more business technology products and services to customers.

What is the significance of the Managed Office Certification Program at Nova Tech?

The Managed Office Certification Program is a 14-week training program for Nova Tech's sales representatives, teaching them about Managed IT services, cloud computing, cybersecurity, data backups, and business continuity. This helps to equip the sales team with the knowledge to sell a broader range of services to customers.

How does Nova Tech incentivize its sales representatives to sell Managed IT services?

Nova Tech has adjusted its commission plan to incentivize sales representatives. For every Managed IT services contract they secure, the representative earns a full month's commission on the contract value, which significantly motivates them to sell these services.

What is the strategy for dealing with cybersecurity risks at Nova Tech?

Nova Tech addresses cybersecurity risks by providing customers with a suite of security technologies, including managed detection and response, next-generation firewalls, and user awareness training. They also conduct quarterly business reviews with customers to assess and improve their security posture.

How does Nova Tech handle the challenge of training older sales representatives to sell Managed IT services?

Nova Tech does not force older representatives to sell Managed IT services if they are not comfortable with it. However, they encourage younger sales professionals and those planning to stay in the business for a longer time to learn and sell these services, as they are crucial for the future of the industry.

What is the impact of AI on cybersecurity and how does Nova Tech adapt to it?

AI is making cybersecurity threats more dynamic and sophisticated. Nova Tech is aware of this and is actively involved in providing advanced cybersecurity solutions that can adapt to these evolving threats, ensuring their customers' environments are as secure as possible.

What advice does Dave Mormon have for traditional copier dealers looking to transition into Managed IT services?

Dave Mormon suggests that traditional copier dealers should consider acquiring an existing MSP or hiring someone with experience in the MSP space. He emphasizes that building an MSP practice from scratch is challenging and time-consuming, and that the industry is moving towards a more comprehensive technology service offering.

How does Nova Tech ensure its own security posture is robust against cyber threats?

Nova Tech has a strong security posture with multiple security technologies deployed across its environment. They also have a network operations center in India and partner with ConnectWise for their Security Operations Center. Regular assessments and training help maintain a high level of security.