What is curve jumping? An MSP growth hack

With competition intensifying and technology advancing at an unprecedented rate, how can MSPs stay ahead of the curve?

When you first start your business, it’s both fun and challenging. Everyone is getting along, and you’re making money. But often, the biggest challenge that comes into play is recognizing when you’ve hit the plateau. Enter “curve jumping.”

In this blog, we’ll take a deep dive into this powerful growth hack, exploring what curve jumping is, why it’s essential for MSPs, strategies for leveraging it successfully, and ways to overcome common challenges.

What is a growth hack?

A growth hack refers to a strategy or technique that focuses on rapidly and efficiently growing a business or organization. It typically involves leveraging unconventional methods, creative thinking, and data-driven experimentation to achieve significant growth in a short period of time.

Growth hacking emphasizes quick iterations, scalability, and measurable results. It involves identifying and capitalizing on opportunities for growth, whether through customer acquisition, retention, or revenue generation.

What is curve jumping?

Curve jumping is a business growth model that involves a forward-thinking outlook to determine what the next “curve” or growth opportunity is to avoid natural plateaus and declines as your business grows.

Jumping the curve should be viewed as a new approach to what you’re doing. Since the first part of the curve is stable and predictable as the business grows, people often want to backtrack to the same growth curve instead of leaping forward to find a new one.

Your business needs to make forward movement—it’s counterproductive to try to salvage a curve that has been outgrown. The question shouldn’t be, “How do I get back on the same curve?” but rather, “How do I find the new curve?”

Figure 1: Curve jumping

Curve jumping is based on the business lifecycle, which includes periods of growth, plateau, and decline. The point of curve jumping is to recognize when your business has maximized the growth potential of any given curve and “jump” to the next one before you can start on the decline.

However, recognizing the plateau can be difficult because the top of the plateau often feels the same as when your business is in a period of growth. Both are characterized by stability and predictability, so it’s common not to realize that you’re in the plateau until you hit the decline—and by then, it’s too late.

Real-world application

A model example of this situation is Blockbuster. Once a popular movie rental company, Blockbuster had the opportunity to buy Netflix at its plateau—but they passed on the opportunity, not realizing their business was about to reach a decline. This was before Netflix had streaming services as we know it today and was mailing out DVDs for a monthly membership fee. Blockbuster made decent money from late charges, but Netflix wasn’t charging late fees and started to become more appealing as an affordable video rental service.

Unfortunately for Blockbuster, they hit a very steep curve decline and, at that point, couldn’t switch their business model to keep up with the changing times. Without the late charges, their company wouldn’t be profitable.

Why is curve jumping essential for MSPs?

Curve jumping can be uncertain and risky, but as time keeps pushing on, if a business doesn’t jump the curve, it runs the risk of becoming obsolete. In an industry where staying relevant and competitive is crucial, curve jumping offers MSPs a unique advantage. By embracing this growth hack, MSPs can:

• Gain a competitive edge: Curve jumping allows MSPs to differentiate themselves from the competition by offering cutting-edge solutions and services that address emerging market needs. By being at the forefront of technological advancements, MSPs can position themselves as industry leaders and attract clients seeking innovative solutions.
• Expand market reach: Curve jumping enables MSPs to identify untapped markets or niche segments that have yet to be fully explored. By entering these uncharted territories, MSPs can tap into new revenue streams and expand their client base beyond their traditional target audience.
• Foster innovation: Curve jumping encourages MSPs to embrace a culture of innovation and continuous improvement. By constantly seeking new ways to deliver value to clients, MSPs can stay ahead of the curve and adapt to changing market dynamics more effectively.
• Drive business growth: Ultimately, curve jumping is all about driving business growth. By taking calculated risks and making strategic leaps, MSPs can experience exponential growth, surpassing their competitors and establishing themselves as industry trailblazers.

Strategies for successful curve jumping

There are several steps you can take to ensure your business can successfully curve jump. The top three include:

1. Determine the next curve

Business leaders are responsible for assessing the current state of the business and determining what the next curve is. Leadership should consider:

• Identifying emerging trends and technologies (for example, AI, hyperautomation, and the platform economy).
• Researching industry reports and forecasts.
• Monitoring technology advancements.

Pro tip: plateaus often occur when business leadership spends so much time focused on keeping the wheels of the business moving in the present that they can’t think of what should come next.

2. Embrace innovation and taking calculated risks

Innovation plays a vital role in determining the next curve. Consider which approach to innovation is appropriate: a creative approach vs. an operational approach.

The creative approach—often limited to the business owner and a few leaders or managers—involves thinking outside the box, exploring new ideas, and seeking innovative solutions. Creative thinkers often focus on identifying emerging trends, market opportunities, and potential disruptions. They may engage in brainstorming sessions, research, and analysis to generate unique and forward-thinking ideas.

The operational approach—often taken by functional leaders—takes a more practical and systematic approach to determine the next curve. Operational thinkers focus on implementing process improvements to ensure operational efficiency.

Often, in smaller MSPs, the business owner must wear both hats and consider both approaches to balance innovation with daily business improvements until they get a bigger team to own parts of the process.

3. Develop a comprehensive implementation plan

Once the next curve has been identified, it is crucial to develop a comprehensive implementation plan. This involves setting clear goals and objectives that align with the desired outcomes of the chosen curve. Businesses must allocate resources effectively, ensuring that they have the necessary manpower, technology, and financial support to execute the plan successfully.

Additionally, establishing metrics to measure success allows businesses to track progress and make adjustments as needed. A well-developed implementation plan ensures that the chosen curve is executed efficiently and maximizes the chances of achieving growth and success.

Common challenges in curve jumping and how to overcome them

Everything isn’t always sunshine and roses when you hit your next curve. While curve jumping can bring about significant growth for a business, it also comes with its fair share of challenges and growing pains.

The top three challenges for MSPs include:

1. Leadership through change

Embracing change is necessary for growth, but you’ll likely encounter some resistance. Open communication and transparency are key in addressing concerns and misconceptions to get everyone on board. Leadership plays a vital role in demonstrating commitment and offering guidance. Be sure to recognize small wins to boost morale and motivation to keep things moving in the right direction.

2. Growing pains in the accelerating part of the curve

A typical area in which we see businesses experiencing growing pains is operational efficiency. As a business expands, existing processes and systems may struggle to keep up with increased demand. This can lead to bottlenecks, delays, and errors, impacting productivity and customer satisfaction.

An example of this dynamic can be seen in service tickets. When your business is small, you don’t need extensive documentation. When you grow and reach, say, 10 techs, then documenting is necessary to adequately keep track.

Then you add a dispatcher who assigns techs to work on tickets—but the service techs don’t know what’s going on, and customers start to get upset that their tech isn’t familiar with the issue. Then, the techs move into service pods, and people get siloed. Hence, the root of the problem stays the same, but the solutions get more expansive and expensive.

3. Making the jump

During this stage, we see businesses asking “how” questions.

• How can we do this better?
• How do we track and manage to the right KPIs in order to maximize profitability?
• How do we improve our processes to eliminate waste and deliver better service?
• How do we communicate with our new company size?

As you figure out those answers, you’ll begin greatly reaping the reward of a new curve. The key to success is to identify the crucial few areas that demand attention and allocate the necessary resources to resolve them.

Consider implementing a rallying cry which serves as a unifying force to help employees see the bigger picture. By simplifying the overall goal into a memorable mantra, you can foster a sense of purpose to achieving collective success.

Conclusion

Curve jumping is about learning how to deal with the current challenges your business is facing and future-proofing your business by anticipating challenges before they become insurmountable. Remember, the only constant is change.

If you’re looking to gain further insight into curve jumping and business growth for long-term success, join our exclusive MSP peer group, IT Nation Evolve™! It’s designed to help leaders take their business and skills to the next level by leveraging accountability, benchmarking, and community. Your business will thank you, and the results will speak for themselves.