SMB Community Podcast: Business Advice for Small MSP Owners

Karl kicks off with a bit of a rant related to topic one.

Topic 1: Noting the demise of Clatchy Newspapers, and remembering Kodak.

One of the classic examples about innovation is Kodak's failure to take advantage of digital photography. We recently stumbled on this article, claiming we should cut them some slack:

https://thenextweb.com/podium/2019/11/23/in-defense-of-kodak-and-its-failure-to-innovate/

Karl says we should not stop beating up on Kodak as they 100% invented the future and set it aside in favor film, chemicals, paper, and processing. They doubled down on the past. Dave says the article makes some excellent points.

And Ryan? Well, you have to listen.

Bottom line: Doing everything right in context can still result in doing everything wrong in the big picture.

Topic 2: Are you ready for industry 4.0 and reality 4.0?

On the surface this is an article about the most advanced of new technologies. But at the detail level, none of this is remotely possible without the underlying infrastructure of computing that is the heart of the channel ecosystem.

Nerdy dive into VR, AR, xR. But also a cautionary note about trying to date if you look like a nerd.

This is the new type of application that will be running on our customers’ networks ... and if we don’t sell the high-performance computers / networks / storage required by this movement it’s just a voluntary Darwin effect.

Link:
https://www.itproportal.com/features/industry-40-also-brings-reality-40/

Topic 3: How is IoT cutting costs? Is IoT actually cutting costs.

Shocker alert: We love IoT and think it's saving lots of money. But it's always good to boil down a big concept into measurable benefits:

Link:
https://techaeris.com/2019/11/26/how-exactly-is-iot-cutting-costs-for-any-office/

NOTE: We declare that IoT is here. It's no longer "emerging" technology. This is definitely fuel for the continuing conversation.

:-)

Lots of intro chit-chat here. And then . . .

Topic 1: Walmart Kicking Amazon’s Butt with Drone Patents

In the "drone wars," Walmart has a very cool new patent. They are integrating blockchain into their drone delivery tracking, and developing the ability for drones to pass packages between each other. The goal is to increase the reliability of tracking and documenting the last mile of delivery.

Link:
https://blog.freightpop.com/drones-in-supply-chain-management-warehouse-tracking-surveying-delivery

https://www.ipwatchdog.com/2019/09/07/walmart-challenges-amazon-in-international-patent-race-for-drone-delivery-technology/id=113000/

Quote:
“The more competition, the greater the chance of regulations in favor of commercial drone operations” -- Hadas Bandel

Topic 2: How to Engage with Vendors

We give our opinions and advice about working with vendors. Hint: Find out how the person you’re talking to is compensated. What metrics will be used in their quarterly review or MBO payout?

Note also: Strategies have changed when you no longer have three primary vendors, but have ten.

Topic 3: The Contract for the web: How can a solution provider leverage this?

Tim Berners-Lee (inventor of the world wide web) launched a plan for the future that has been endorsed by Google and Facebook. The goal is to set up some common standard to move everyone toward "the good."

Principles include: Universal access to the Internet, and respecting and protecting privacy.

This is a very important conversation we will come back to again and again.

Links:

https://www.theverge.com/2019/11/25/20981502/contract-for-the-web-tim-berners-lee-google-facebook-principles-techlash

https://contractfortheweb.org/

:-)

Had a great impromptu chat with Dave Sobel from MSP Radio and The Business of Tech (and the Killing IT podcast).

Dave has spent his time as both an IT Service Provider and a vendor. Now he is jumping into a new venture as an analyst and new reporter.

If you haven't checked it out already, head over to MSP Radio and subscribe to The Business of Tech - his daily five-minute podcast. Great stuff.

Dave mentions three important rules he's set for himself going forward:

1) Do things that are big, different, and significant

2) Don't talk to product marketing managers

3) Never sit on another pricing panel at conferences

Find out what's behind these and how they affect what he's up to.

I happen to know Dave has some pretty big things planned with MSP Radio, so tune in now and stay tuned.

Revevant Links:

MSP Radio: https://www.mspradio.com/

Killing IT Podcast: https://killingit.smallbizthoughts.com

LinkedIn: https://www.linkedin.com/in/davesobel/

:-)

About the SMB Community Podcast: Weekly business advice for small MSP owners from Amy Babinchak and James Kernan of the Small Biz Thoughts community — MSP sales, MSP pricing and agreements, hiring and leading an MSP team, MSP operations, selling your MSP, and AI for small MSPs. Produced by MSP Radio. More for MSP owners at smallbizthoughts.com.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Everything this week is related to AI and ethics.

Topic 1:

Follow-up on Episode 33 - AI ethics across cultural boundaries.

Karl: “China will call it protecting our culture.”

Ryan said: “Crossing geographic boundaries is one things, but crossing cultural boundaries is another.”

So, how do we address cultural norms and ethics in a worldwide discussion. Business ethics and laws are different everywhere, yet we practice economic relationships without boundaries.

What should we be discussing here? We have thoughts.

Topic 2:

More ethics. The Wall Street Journal had a long article addressing the fact that Google is messing with search results to fit corporate needs and political biases.

Google has more than 90% of the worldwide search traffic. They made about 500 changes to their search algorithm in 2010. And about 2400 in 2017, and 3200 in 2018. That's a lot of changes! Most of them are in response to some kind of request.

It turns out, Google’s super-secret algorithm favors big companies over small companies; favors eBay and other large advertisers; and favors already-big web sites over lesser-known web sites.

Google also works hard to crafting “knowledge panels” in order to keep you on their site. AND they change the results of auto-complete in an attempt to be politically correct and less divisive.

Related Link:
https://www.wsj.com/articles/how-google-interferes-with-its-search-algorithms-and-changes-your-results-11573823753

Related topic: AI is male biased
https://www.nytimes.com/2019/11/15/technology/algorithmic-ai-bias.html

Note: Update. In the days after this posted, Google’s “Top Stories” included links to articles refuting the WSJ post. :-)

And now for the Mail Bag . . .

Topic 3: Listener Joe asked our thoughts on companies that negotiate - or pay off - ransomware.

Should you (and your clients) negotiate with ransomware criminals? Should you engage a company to negotiate for you? What's "right" and what are the best practices.

Related ProPublica story on this topic:

https://features.propublica.org/ransomware/ransomware-attack-data-recovery-firms-paying-hackers/

:-)

James Kernan: How to build Equity in your business BEFORE you sell - The 8 secrets to increasing the value of your business

I had a great chat with fellow coach James Kernan.

James is the author of the 36 Month Millionaire Program, and recently published books, Leadership Essentials for Successful Executives and Business Tips. For the past 12 years, James has served as a Principal Consultant for Kernan Consulting and provides Coaching, Advising and Mentoring programs to entrepreneurs and leaders.

We only had a half hour, but James covered a lot of territory. In today's crazy M&A environment, many people are approaching the sale of their business before they're ready. That is, they haven't done the ground work to maximize the value of their business before they get serious about selling it.

This discussion is chock-full of great advice!

Kernan Consulting offers One on One Coaching, CEO Peer Groups, M&A Consulting and online training programs. For more information on the company please visit: www.KernanConsulting.com or call: 888.VAR.COACH

Kernan Consulting empowers small-business owners to grow themselves, their teams and their profits using practical, proven and trusted business wisdom. If you want to learn how to create a winning company culture, grow a team of passionate and loyal workers who will help you win. If you want to learn how to market and sell better than your competition, and compensate your people in a way that motivates them to achieve more, then Kernan Consulting is for you. It's practical, applicable advice that can transform your business and help you become an incredible leader who others will gladly follow.

Links:

• https://kernanconsulting.com/
• https://www.facebook.com/james.kernan
• https://twitter.com/jkernan
• https://www.linkedin.com/in/james-kernan-varcoach/
• https://www.instagram.com/james_kernan/

:-)

About the SMB Community Podcast: Weekly business advice for small MSP owners from Amy Babinchak and James Kernan of the Small Biz Thoughts community — MSP sales, MSP pricing and agreements, hiring and leading an MSP team, MSP operations, selling your MSP, and AI for small MSPs. Produced by MSP Radio. More for MSP owners at smallbizthoughts.com.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Quick note on our favorite social media for interacting with partners.

Karl = Facebook - https://www.facebook.com/karlpalachuk
Dave = Facebook - https://www.facebook.com/djdave
Ryan = LinkedIn - https://www.linkedin.com/in/ryanmorris303/

Please connect with us!

Topic 1: Four day work week study from Microsoft

There was lots of press coverage of Microsoft's study of a four-day work week in Japan. The first question that came up on social media was, how is this possible in an IT service delivery model? Can we really escape trading dollars for hours?

Of course we have opinions.

Link:

https://www.businessinsider.com/microsoft-4-day-work-week-boosts-productivity-2019-11

Topic 2: In the modern world, do you have to have work experience before you become an entrepreneur?

It used to be that you started as an apprentice and then went out on your own. With few exceptions, the classic entrepreneurs all worked for someone else and then went out on their own. Today more and more people are starting businesses right out of high school or college. Would they be better faster if they worked for someone else first?

We cover a bit about how we got into entrepreneurship. And (shockingly) we have some opinions about this.

Topic 3: Should small IT providers be paying attention to smart cities?

Is this really an opportunity in the SMB Market or is this beyond us?

One definition of Smart Cities is that they cover at least five of these eight parameters:

1. Smart Energy
2. Smart Building
3. Smart Mobility
4. Smart Healthcare
5. Smart Infrastructure
6. Smart Technology
7. Smart Governance and Education
8. Smart Citizens

According to this criteria, there will be about 26 smart cities in 2025.

(Cite: Book Future Cities by Stefano Tresca)

:-)

In this podcast, I interview Andrew Lassise, a serial entrepreneur who has built Rush Tech Support from his living room in 2014 to a multi million dollar managed services provider. He got sober in 2013 and has an incredible story of triumph over alcoholism and growing and scaling an IT company

Andrew also has a podcast, Self Made & Sober. He talks with entrepreneurs who are in recovery and are successful in business.

We kick it off with Andrew's story of hitting the bottom while being pulled over for drunk driving. It was in climbing out of that hole that Andrew found his love for IT service delivery.

An interesting twist here is that Andrew has ended up with a podcast where people tell their stories. They open themselves to vulnerability. And their stories help them go to their clients and prospects with their values and integrity on display.

An interesting person and story - I think you'll agree.

Links:

• www.rushtechsupport.com
• www.selfmade-coaching.com

:-)

About the SMB Community Podcast: Weekly business advice for small MSP owners from Amy Babinchak and James Kernan of the Small Biz Thoughts community — MSP sales, MSP pricing and agreements, hiring and leading an MSP team, MSP operations, selling your MSP, and AI for small MSPs. Produced by MSP Radio. More for MSP owners at smallbizthoughts.com.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Quick reminder: Find us on Facebook! 

Dave from MSPRadio.com: https://www.facebook.com/djdave
or https://www.facebook.com/mspradionews

Karl from the Small Biz Thoughts Community: https://www.facebook.com/karlpalachuk
or https://www.facebook.com/SmallBizThoughts/

Ryan from Morris Management: https://www.facebook.com/ryan.morris.5454

Topic 1: The DOD announces ethical rules for AI.

The military beats the private sector to the market — what does this mean?

Download the document at: https://admin.govexec.com/media/dib_ai_principles_-_supporting_document_-_embargoed_copy_(oct_2019).pdf

Quote: "The following principles represent the means to ensure ethical behavior as the Department develops and deploys AI." And so the Department of Defense proposes the goal that its use of AI
systems is:
1. Responsible
2. Equitable
3. Traceable
4. Reliable
5. Governable

Related links:

https://www.engadget.com/2019-11-02-pentagon-draft-ai-ethics-guidelines.html

https://www.mspradio.com (for Dave's Business of Tech podcast)

Topic 2: How much life is left in the current RMM market?

What do you need your RMM to do? How long will that last?

This is a big round-robin discussion of the tools as they are today and where (whether) they fit in the IT consulting business of tomorrow.

Related Links:

https://www.economist.com/britain/2018/05/24/ocado-the-tech-startup-you-thought-was-a-supermarket

https://www.msspalert.com/cybersecurity-news/servicenow-patch-management-findings/

Topic 3: The SMB Channel Digitization

Yikes. Is this digital transformation again?

Are you automating processes? If so, exactly what are you doing, and does it reduce your staff needs?

If you're improving client businesses with automation, then you're in the sweet spot or consulting.

https://techaisle.com/blog/382-32-percent-of-smb-business-activities-expected-to-be-digitized-by-2021-2x-from-2017

-- -- --

Note about Channel Evolution Europe 2-3 December: http://bit.ly/2MYCQdd
Use code SOBEL for 25% off.

:-)

I had a lot of fun recording this podcast with Nicholas Ford (Account Executive - Partner Network at SherWeb) and Jacob Wellman (Associate Account Executive at SherWeb). In addition to working together, these guys are friends who have built a great culture in their department.

See the photo we discuss at www.smbcommunitypodcast.com.

Topics include fun at work, building a fun culture, and figuring out how to motivate people and teams. And while we have a lot of fun here, there's also lots of great advice about building your team.

You can connect with these guys on LinkedIn:

• https://www.linkedin.com/in/nicholas-ford-b5a371b1/
• https://www.linkedin.com/in/jacob-wellman-7a879412b/

Comments welcome.

About the SMB Community Podcast: Weekly business advice for small MSP owners from Amy Babinchak and James Kernan of the Small Biz Thoughts community — MSP sales, MSP pricing and agreements, hiring and leading an MSP team, MSP operations, selling your MSP, and AI for small MSPs. Produced by MSP Radio. More for MSP owners at smallbizthoughts.com.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Quick note: Here's where you can find us on Twitter. Please connect:

https://twitter.com/ryanmorris303
https://twitter.com/djdaveet
https://twitter.com/karlpalachuk

Topic 1: Mailbag - Blockchain

Bryan sent us a note asking for our take on Blockchain and BitcoinSV and the creation of the Metanet. (https://nchain.com/en/the-metanet/)

For a little background, of the “split” and related politics, see https://changenow.io/currencies/bitcoin-sv

Overall, we're much more bullish on blockchain generally than Bitcoin specifically.

Links mentioned:

https://www.ibm.com/blockchain/platform
https://azure.microsoft.com/en-us/free/blockchain/
https://aws.amazon.com/managed-blockchain/
https://cloud.google.com/customers/blockchain/
https://www.intel.com/content/www/us/en/security/blockchain-overview.html

Book: Anarchy, Inc., by Patrick Schwerdtfeger.

YOU can ask us a question at https://killingit.smallbizthoughts.com.

Topic 2: Starting or joining a Mastermind group

We discuss our experiences and give some general advice on joining or starting your own.

Topic 3: Navy submarine resupplied by drone delivery

It’s not a burrito ... but it’s getting closer:

https://www.businessinsider.com/navy-drone-delivers-supplies-to-submarine-for-first-time-2019-10

See last week's show as well as several others. Drone delivery is a money making venture - and now is a great time to figure out what your role is.

:-)