Executive Summary

River City Tech, originally an Access database development company based in Saskatoon, Saskatchewan, was able to rapidly build a thriving managed IT services provider (MSP) business after joining the 7 Figure MSP Elite program.

Prior to the program, owner Mitch Redekopp had transitioned the company to providing managed services at the start of the COVID-19 pandemic. However, he struggled with shifting from a technical mindset to running the business operations and driving growth.

By implementing the teachings and processes from 7 Figure MSP Elite, Redekopp was able to:

• Establish a premium pricing model of $220-$250 per user/seat
• Position River City Tech as a trusted advisor for high-value security services
• Develop disciplined financial management focused on cash flow
• Overcome doubts about succeeding as an MSP in a smaller city market

Within just a few years after joining, River City Tech’s managed services monthly recurring revenue soared to over $63,000 (around $750,000 annually).

The program enabled Redekopp to make the mindset shift required, stepping away from hands-on technical work to drive growth through optimized business operations, sales, and value-based pricing strategies.

Introduction

Mitch Redekopp had spent years running a successful database development company focused on building custom Access applications. But when the COVID-19 pandemic hit, it opened his eyes to a new opportunity – transitioning into providing managed IT services.

“We were purely an Access development company for about eight years,” Mitch said. “Then it became quite obvious that we needed to diversify our services.”

Transitioning to Managed Services

While the pivot allowed Mitch’s company, River City Tech, to take advantage of the accelerated cloud adoption during lockdowns, it required a substantial mindset shift. He had to step back from the technical work he loved and focus on operations, sales, and driving growth as a business owner.

“I’m very much an IT guy, but I’ve had to pull myself away from that,” Mitch admitted. “It was hard at first, but that’s really what helped propel us.”

Building an MSP in an Unexpected Market

Based in Saskatoon, Saskatchewan – a city of just 300,000 residents – Mitch had to overcome skeptics who felt the MSP model couldn’t succeed outside of major metropolitan areas. But he proved them wrong in a big way, rapidly building up to over $63,000 in monthly recurring revenue for his managed services.

“A lot of the flack I get is ‘oh this only works in America’…but we’ve been able to get to that mark in Saskatoon, Saskatchewan.”

Pricing Strategy and Value Positioning

Part of River City Tech’s rapid success stemmed from Mitch’s premium pricing model – charging $220 to $250 per user/seat. Rather than racing to the bottom, he positioned his firm as a trusted advisor providing high-value security services and solutions.

“We’re trying to implement these high-priced, security-focused services…we position ourselves as that adviser, not just an order-taker.”

Fundamental Business Practices

While deftly navigating the operational challenges of hyper-growth, Mitch remained laser-focused on financials. Maintaining strong cash flow through diligent tracking of metrics, collections practices, and expense management helped fuel River City Tech’s expansion.

“We’re pretty good at making sure we get paid and maintaining that cash flow…that is something we’ve been focusing on from the very beginning.”

Challenging Traditional Assumptions

From charges that the MSP model was too America-centric to doubts about making it work in smaller markets, Mitch had a habit of proving naysayers wrong at every turn through strong execution.

“I get a lot of flack on ‘this only works in America, this doesn’t work in Canada’…we’ve been able to get the same results and same process has worked for us.”

Results and Ongoing Execution

In just a few short years since that initial COVID-driven transition, River City Tech has rapidly transformed into a thriving $63,000 per month managed services operation. And Mitch continues full steam ahead, applying best practices to capture new growth.

“This is something we want to keep running and really start to focus on how much further we can scale this…We feel pretty confident we can get pretty close to that million dollar a year mark in the next little bit.”

For other MSPs looking to replicate Mitch’s success – even in smaller, unexpected markets – the keys are straightforward: premium pricing, strategic focus, financial discipline, and most importantly, not accepting limiting assumptions.

“Don’t embrace your comfort zone,” Mitch advises. “Keep looking for those opportunities and take those risks – let the results speak for themselves.”