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Issue #79 It’s the economy stupid

Lately, we’ve been interviewing MSPs to understand more about trends in the market. 

We’ve learned that the MSP industry is on a tear.

The vast majority of the people we’ve talked to see boundless growth, but even so are worried about the economy.

So the next logical question: what’s up with the beef, cardboard, and shrimp?

More on that in a second.

First, some Updates:

  • 👉 The best way to define the problem you solve is to use the Jobs To Be Done framework; members can find our playbook here (and we have a template for everyone here).
  • 💁‍♀️ We’ve been working on a blog post: the Best Practices for Maximizing MSP Growth; we are still editing as we learn more, but let me know what you think.
  • 📣Podcast: Have you ever loved using your printer? No one really does. But on our latest podcast episode, we talk with Mitch Kranitz about how he takes the pain of dealing with printers away from MSPs (and gives them a commission for the referrals, a win-win).

Recession or no recession

Well, take your pick. 

Last week the fed held interest rates right where they were, which caused the collective financial analyst brain to explode in a tizzy of pause or skip. Is this the end of interest rate hikes, or just a skip?

(And, do you care?)

Well, it’s probably a skip. Because that’s what Chairman Powell said. And he decides.

But the real determinant is the economy.

So, as an MSP, if you are wondering about the economy, how do you know?

(And do you care?)

You could try the Hemline Index. It was popularized in the 20s – the idea is that hemlines get longer with a bad economy and shorter with a good economy.

The problem: the Rotterdam duo hard up for things to do on a Friday night looked at the data showed that hemlines shifts came 3 years after economic shifts. So hemlines are a terrible indicator. 

The Costco CFO likes beef as an indicator.

He recently fretted about a move away from steak to poultry as a sign that the economy is worsening.

And Jeffrey Kleintop from Charles Schwab would agree because he sees a decline in cardboard demand (which means fewer boxes, so less stuff being delivered).

Of course, there is also the shrimp index. Apparently, corporations cutting entertainment costs cut the raw bar first.

The Shrimp index is holding steady. 

So how can you predict a recession?

You can’t.

And you know what? You shouldn’t care.

Even though tech companies are worried about the economy, the best ones are not affected by it. 

Why not?

Because they define a business built around solving important customer issues.

When you solve a specific, real, felt problem, when you are a partner to your clients, they desperately want to work with you when times are good.

When times are bad, they want you even more.

How do you do this? Well, first, define whom you work with and the problem you solve for them, and then don’t worry about the recession.

It doesn’t matter what happens to beef.

Or shrimp, for that matter.

Yours in recessions,

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