Today, on The Dirt, we had the pleasure of talking to Josh Holloway, the founder and CEO of Seventh Dimension. Josh has followed in the footsteps of many great entrepreneurs, such as Steve Jobs and Jeff Bezos, by starting his business in a California garage and scaling it into a multimillion-dollar business. In this conversation, we take a deep dive into his journey towards a 30 million business and how being an IT and cybersecurity thought leader has played a critical role in the journey.
Josh Holloway is a kid from LA who has always had a passion for computers. As a four-year-old, Josh was already breaking computers, and by the time he was 19, he had already gotten his first consulting gig. Josh’s initial passion was architecture, but he quickly realized that he didn’t want to be stuck in a job he wasn’t happy in. So, he decided to pursue his dream of owning a company. He started Seventh Dimension and began piecing it together.
When it comes to Managed Service Providers (MSPs), 87% of them are sub 1 million in revenue. Josh Holloway was no exception. He was able to get past the 1 or 2 million mark by working 80 to 120 hours a week and giving up a portion of himself.
Once Josh got a little bit further down the line in revenue, the challenges changed. He had to understand the different industry challenges and where the revenue roadblocks were. He also had to understand that businesses grow and create different challenges. Josh believes that the biggest thing that pushed them over the edge was finding the right people and putting money into marketing. He also learned the importance of getting out of his own way and working on the business, not in it.
In this podcast episode, Jim Barnish interviews Josh Holloway, the founder of an MSP business. Josh shares his experience growing his business, from two to 10 million, and how he overcame the “valley of death” between two and five million. He explains the importance of hiring the right people and creating a culture of growth and success. Josh also offers his advice on organic and inorganic customer acquisition strategies.
Josh explains that it’s important to hire people who can handle the workload of a business at any size. He suggests looking for people who are like-minded, but also have the experience of working in larger businesses. He also emphasizes the importance of culture and how it can help a business grow. Josh recommends hiring someone with a “human touch” who can interact with employees in a more humanistic way.
Josh explains that the way he interacts with clients is key to his success. He holds himself accountable and is willing to admit fault. He also speaks to clients in a way they can understand, without using tech speak or acronyms. Josh has also implemented some funny marketing campaigns, such as sending aspirin to prospects, to get them thinking about their current provider. He emphasizes the importance of not giving up and continuing to push even if the campaigns don’t get traction right away.
Acquisitions can be a game changer, both for good and bad, according to Josh. The first acquisition Seventh Dimension made was with Steve Rayley in 2012 and it was a milestone for the company. This acquisition allowed Seventh Dimension to expand its geographical presence and gain access to local talent. The second acquisition with Reno Computer Services was a milestone in terms of expanding the company's reach and helping it to become more decentralized and centralized.
Organic growth is also important, and Seventh Dimension is always looking for ways to improve its processes and marketing. Josh believes that providing a great customer experience is key to growing the business through referrals. He started Seventh Dimension because he saw other consultants providing poor service for high prices and he wanted to provide better service for less money.
Josh reveals that the number one metric or KPI that he is relentlessly focused on is overall client satisfaction. “We do that through surveys and then I do that through technical business reviews. I want that cold hard truth. You’re either happy or you’re not. And if you’re not, why not? What do we need to do?” He also stresses the importance of not outshining the master. “When you’re an MSP, your clients are the master. You don’t ever want to make them look bad because inevitably you’ll lose that contract.”
Josh emphasizes the importance of volume and patience when it comes to growth. He believes that you can't win with just 25 letters and that it takes 10 touches to make an impact. He also talks about the importance of sticking with a campaign, even if it's not working right away. It's important to give everything six months and look at the numbers to gauge how people are reacting to it.
Josh’s top tip for growth stage founders is to get out of their own way. “Find your opposite that’s going to push you to a different level. Do things out of your comfort zone to push.” He also recommends reading Robert Greene’s <em>48 Laws of Power</em>. “The one law that sticks with me is like, not to not outshine the master.”
Understanding where your revenue roadblocks are is a critical first step to growth in any industry. As businesses grow, they create different challenges. Overcoming the Valley of Death, which typically occurs from 2 million to 5 million, is difficult. That's where you have money to get people, but you're still in your own way. You're trying to find good talent, and the biggest thing that pushed Jeff Holloway over the edge was finding the right people.
