The Pumpkin Plan for MSPs: Cultivating Growth and Scaling Profitably
“One of the tasks was to essentially apply that Pumpkin Plan where he needed to look at their book of business and their P&L, identify customers that needed to be pruned so that the more flourishing customers could grow.” — Matt Yesbeck
Managed Service Providers (MSPs) often struggle with balancing client satisfaction and profitability. The Pumpkin Plan for MSPs, inspired by Michael Michalowicz’s renowned business framework, offers a strategic method to refine client rosters, optimize operations, and drive sustainable growth.
We spoke with Matt Yesbeck, founder of MSPX, to explore how MSPs can leverage the Pumpkin Plan methodology to improve service quality, strengthen client relationships, and scale profitably.
You can listen to Matt and Carrie talking about the Pumpkin Plan for MSPs here
You can watch the video interview on our youtube channel here
What is the Pumpkin Plan for MSPs?
Many MSPs fall into the trap of taking on too many low-value clients, preventing them from effectively serving high-value customers. Yesbeck’s son and business partner, Gage, recognized this challenge firsthand:
“One of the tasks was to apply the Pumpkin Plan—look at the P&L, identify clients that need to be pruned, and allow flourishing customers to grow.”
This approach aligns with the Pumpkin Plan for MSP Owners, co-authored by Dave Cava from Encore Strategic, who adapted Michael Michalowicz’s methodology specifically for MSPs. Their framework focuses on identifying and nurturing "giant pumpkin" clients — those that bring the highest profitability and long-term value.
How MSPs Can Apply the Pumpkin Plan:
- Segment clients based on revenue, engagement, and service fit.
- Prune unprofitable or high-maintenance clients that drain resources.
- Double down on ideal customers who align with business goals.
How MSPX Simplifies the Pumpkin Plan for MSPs
One of the biggest roadblocks MSPs face in letting go of clients is the lack of a structured transition plan. MSPX, the first MSP contract exchange platform, provides a seamless solution:
“We realized there’s just no good way to part ways with a customer. You can send them a ‘Dear John’ letter, but then they feel abandoned. MSPX offers a marketplace to list contracts, monetize them, and ensure clients find a new home with another trusted MSP.”
With MSPX, MSPs can offload clients profitably, preserve their brand reputation, and ensure clients transition smoothly.
Benefits of Using MSPX:
- Monetize contracts instead of losing revenue.
- Ensure client satisfaction with a structured transition.
- Protect brand reputation by avoiding abrupt service terminations.
The Power of Collaboration in the MSP Industry
Many MSPs operate in a competitive and often secretive environment. However, the Pumpkin Plan encourages coopetition—a strategic blend of competition and cooperation.
“The MSPs I’ve met in Richmond have been receptive. We try to look at each other as collaborators, not competitors.”
By engaging in peer groups, networking, and partnerships, MSPs can:
- Refer clients to other MSPs when there's a service mismatch.
- White-label services to expand offerings.
- Share best practices for scaling and efficiency.
Companies Leading the MSP Collaboration Movement:
- Encore Strategic Consulting: Helps MSPs optimize operations using the Pumpkin Plan.
- Fox & Crow Group: Specializes in MSP sales and growth strategies.
Scaling an MSP with a Pumpkin Plan Mindset
Successful MSPs start small but grow into multi-million dollar enterprises by strategically selecting their clients. Carrie Richardson, Partner at Fox & Crow, shares her experience:
“I have seen companies in peer groups grow from million-dollar MSPs into $50M powerhouses, now actively involved in M&A.”
Steps to Scale an MSP Business:
- Systemize lead qualification to attract the right clients.
- Standardize service offerings to improve efficiency.
- Focus on high-value customers that drive profitability.
- Leverage industry partnerships for referrals and outsourcing.
Take Action: Implement the Pumpkin Plan Today
If you’re looking for actionable strategies to grow a profitable MSP, schedule some time with Carrie Richardson to learn how Fox and Crow Group and the MSP Sales Process can help - to Pumpkin Plan your clients, you need to replace that revenue first!
FAQs
1. What is the Pumpkin Plan for MSPs?
The Pumpkin Plan is a business growth strategy that helps MSPs identify and focus on their most valuable clients while pruning unprofitable ones.
2. How can MSPs benefit from implementing the Pumpkin Plan?
By pruning low-value clients and focusing on high-value accounts, MSPs can improve profitability, operational efficiency, and client satisfaction.
3. What challenges do MSPs face when pruning clients?
Many MSPs struggle with client offboarding, fearing loss of revenue or reputation damage. MSPX offers a structured solution to transition clients smoothly and monetize contracts.
4. How does collaboration help MSPs grow?
Networking with peer MSPs allows for client referrals, white-labeling services, and sharing best practices, leading to sustainable business growth.
5. Where can MSPs learn more about the Pumpkin Plan?
Listen to our Win Podcast Episode with Dave Cava, read the Pumpkin Plan for MSP Owners, or connect with Matt Yesbeck at matt@mspx.store.
