interview

Transitioning from break-fix to managed IT services

“I think we’ve added about $100,000/month in MRR.” (Editor: they added $130,000.)

“At some point I just said, you know, I’m not gonna do anything technical and I don’t. The guys don’t let me do anything technical. So, um, I, in fact, I don’t even have administrative access to my own computer.”

“I want us to be at 5 million in the next 15 months and there’s no way I can sell my way to 5 million in the next 15 months. I have to acquire. I’ve never been part of any kind of acquisition or, you know, never done anything like that.”

“What I did to learn how to go and buy other MSPs, is to go out there and say, ‘Hey, I’m selling my company.’ So now I’ve got people coming to me going, ‘Okay, here’s how, here’s what we need to do, our due diligence.’ So I’m basically copying their strategy.”

Michael Roybal – Founder, IT Colorado

Executive Summary

Michael Roybal was stuck in a stagnant break-fix business model until he joined the 7 Figure MSP Elite coaching program. This proved to be the catalyst for transforming his business.

By following the program’s systematic processes, Roybal made key changes:

Shifted to a cybersecurity-focused managed services model
Implemented recurring revenue contracts instead of hourly break-fix
Overcame mindset blocks to raise pricing up to 400% higher
Established sales and marketing processes to attract new clients
The results were dramatic. Within three years, Roybal went from $0 in managed services revenue to over $22,500 in monthly recurring revenue.

He successfully transitioned from a 100% break-fix company to a 95% managed services provider focused on security services.

Roybal credits the 7 Figure MSP Elite program for giving him the processes, training and accountability to confidently reposition his business and radically grow his revenue.

The program empowered him to break out of the break-fix cycle by embracing a higher-value security offering and revamping his sales, pricing and marketing operations.

Introduction

For years, Michael Roybal was stuck in the break-fix rut that plagues so many MSPs. He ran a one-person shop in Northern Colorado, charging hourly rates to troubleshoot client IT issues. Revenue was unpredictable. Growth was stagnant.

Then a major wake-up call struck – he lost his largest break-fix client to a company acquisition, a $150,000 annual revenue hit. It was a make-or-break moment.

“That was kind of the gut-punch that I had to change something,” Roybal recalls.

The Transformation Strategy

It was perfect timing when Roybal discovered a coaching program that advocated shifting to a cybersecurity-focused managed services model. The program’s systematic methodology showed him how to:

Reposition services around risk mitigation and protection
Establish recurring revenue through fixed-fee contracts
Confidently raise rates to match the enhanced value
But it also meant overcoming deep-rooted mindset blocks around pricing and sales that had formed during his years of undervalued break-fix work.

Embracing New Processes

Following the program’s guidance, Roybal redesigned his entire sales approach from top to bottom:

Built a social media/content marketing presence to attract leads
Implemented a structured, repeatable sales process
Learned scripts for having difficult pricing conversations
“One of the biggest mindsets I had to overcome was just the ability to have a real conversation with people about money,” Roybal admits.

Consistent practice helped build his confidence. Soon he was quoting multi-year managed services contracts at 2-4X his previous hourly rates with no discounting.

The Results

The cybersecurity-centric strategy worked – and worked well. In just three years’ time, Roybal:

Grew from $0 MRR to $22,500 in monthly recurring revenue
Transitioned from 100% break-fix to 95% managed services
Increased pricing up to 400% for some services
Attracted larger, more profitable clients
“There’s guys out there that are charging two, three, four, five times what their existing MSP was charging – and they’re still stealing the deal from them,” Roybal notes.

Next Steps: Regional Expansion

With his business stabilized, Roybal is exploring options to build a wider regional presence. This includes potentially opening satellite office locations in Greeley and Fort Collins.

The mindset shift has been powerful – from a reactive break-fix mentality to a proactive risk advisor role.

“If you are not focused on risk management as an MSP, you probably won’t be around in three years,” Roybal states plainly.

Core to his success has been the willingness to follow a proven process, invest in developing his confidence, and embrace security as a core value driver.

“Find someone that has the process, the accountability, the coaching to get you to that next level,” Roybal advises other break-fix MSPs. “It changed my entire business.”

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