Table of contents
Episode Summary
Making the leap from technical expert to CEO requires more than just business knowledge—it demands a fundamental shift in mindset. In this episode, Janice Mahlmann, CEO of August eTech, shares her 24-year journey from network engineer to successful MSP leader and offers practical insights for technical professionals ready to step into executive roles.
Janice breaks down the transition into five key areas: shifting from problem-solver to strategic thinker, developing essential soft skills, focusing on sustainable growth, building a strong company culture, and finding the right balance between technical expertise and business leadership. She emphasizes the importance of hiring experts in areas like HR, accounting, and sales while maintaining enough technical knowledge to guide the business effectively.
The conversation reveals critical delegation, financial planning, and client evaluation lessons. Janice discusses why MSPs must standardize services, build financial cushions, and sometimes walk away from unprofitable clients. Her approach to staying technical while scaling demonstrates how leaders can maintain their passion for technology while successfully growing their organizations from solo operations to 25-person teams.
Guest-at-a-Glance
💡 Name: Janice Mahlmann
💡 What they do: CEO
💡 Company: August eTech
💡 Noteworthy: 24 years building her MSP from solo operation to 25-person team, recently launched MSSP services, holds a master’s in business
💡 Where to find them: LinkedIn
Key Insights
Technical Leaders Must Gradually Delegate to Scale Successfully
Transitioning from hands-on technical work to executive leadership requires deliberate delegation while maintaining strategic oversight. As MSPs grow, leaders must hire specialists for areas like exchange servers or network security, then learn to trust their expertise. The key is choosing one technical specialty to remain passionate about while stepping back from others. This approach preserves technical credibility and leadership effectiveness without creating bottlenecks. As complexity increases, leaders who try to handle everything limit their organization’s growth potential and risk burnout.
Building Financial Resilience Requires Both Defensive and Offensive Strategies
MSP growth demands dual financial management approaches. Defensive measures include establishing emergency credit lines, auditing expenses for unused licenses, and evaluating client profitability to identify resource drains. Offensive strategies focus on cross-selling to existing clients and pursuing profitable market segments. This combination creates stability during client departures while funding expansion initiatives. The discipline becomes critical when transitioning from break-fix to managed services, where cash flow patterns shift significantly and financial planning determines survival.
Company Culture Stems from Shared Information and Cross-Training
Strong MSP culture develops through open communication rather than territorial expertise hoarding. Cross-training multiple team members on critical tasks reduces operational risks when people are unavailable. Leadership must model collaborative behavior and discourage information siloing. This creates environments where systems engineers communicate with help desk staff and departments share insights freely. Beyond cultural benefits, this approach builds operational resilience that supports business continuity and maintains service quality during staff changes or unexpected disruptions.
Listener Takeaways
The Reality of Early MSP Growth and Employee Management
When MSPs hire their first employees, they face immediate business complexities beyond technical work. Adding even one contractor forces leaders into unfamiliar territory, including healthcare benefits, workers’ compensation, and payroll management. The technical expertise that built the business suddenly becomes secondary to understanding business insurance and legal compliance.
Finding and Working with External Experts
Successfully transitioning to executive leadership requires partnering with specialists who can fill knowledge gaps. The challenge extends beyond hiring experts—it involves learning to evaluate whether their advice suits MSP-specific needs. Quality experts should educate clients and welcome dialogue rather than demanding blind trust.
Evaluating Services and Financial Efficiency
Sustainable MSP growth requires regular evaluation of both service offerings and operational expenses. Leaders must focus on services where they have genuine expertise rather than trying to be everything to everyone. Annual reviews help identify subscriptions for unused licenses or services that no longer provide value.
Maintaining Technical Passion While Leading
Effective MSP leaders find ways to stay connected to technology while managing business operations. Rather than abandoning technical work entirely, successful leaders choose one area to remain passionate about and use it to benefit the organization. This balance maintains leadership credibility while avoiding the trap of trying to handle all technical aspects personally.
Syncronized is the MSP podcast that drives MSP growth, from startup to scale-up. In each episode, we dive into the topics that matter most to IT providers, such as automation, AI, service delivery and profitability. Join us as we engage with experts and gain hands-on insights and practical advice you can directly apply to propel your business forward.
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